When your boat is your business, you will likely have to carry some form of business insurance for the boat. How you insure the boat and its contents brings up a lot of different questions.
Commercial boating likely involves two other parties besides the owner: money and clients. As the business owner, you have to protect your financial obligation to a client. You want to complete a service to a client without a problem.
Nevertheless, marine businesses are sometimes unpredictable. Weather, water conditions and other factors could impact your ability to turn a profit. You might have to turn to your business insurance to compensate a client.
Getting the Proper Commercial Boat Coverage
To protect your finances, you often need more than a standard boat insurance policy. Standard policies often carry hull loss and certain liability coverages. However, as a business, you might need to carry:
- Contents coverage: This coverage can protect many of the business contents onboard. It will usually pay you up to a certain limit amount defined in the policy. Contents coverage can often protect different utensils depending on the coverage you carry. If you have a fishing business, this coverage may protect your nets and rods. If you carry passengers, this coverage may protect concession items.
- Liability coverage: If you carry passengers for profit, having them aboard raises risks. You have an obligation to transport passengers safely to their destinations. Paying passengers pose a financial obligation. You want everyone to get off your craft in one piece. Liability coverage can help you protect your assets in case a passenger gets sick or hurt on your craft. This coverage can help you compensate those parties for any damages they may claim.
- Business interruption coverage: Consider this coverage if you have to shut down your boating business due to an unforeseen accident. Should a fire gut your boat, you won’t be able to operate while you make repairs. This coverage can help you pay the bills and your employees while you rebuild.
- Marine Cargo insurance: Commercial boats often carry cargo. Whether you ship goods over long or short distances by water, there is always a chance you could lose the cargo. Cargo insurance often covers a variety of named perils like fire, weather and theft. However, you need to ensure that you have appropriate coverage for specific contents.
Make sure that you clearly define for your insurance agent how you use your commercial boat. This will help your agent get you the appropriate protection.
We can help you get the appropriate amount of commercial boat insurance. We can even issue a fast, free quote right now. Call us at 972.712.8000 for more information.