Commercial Boat Insurance Warrants Higher Liability Claim Levels

Boat insurance is designed to protect from two big risks. The first is to help protect from damage to the boat itself. Secondly, insurance is there to help minimize liability risks, instances in which the boat’s owner or operator may be responsible for losses to other people or other property. When you operate your boat for business purposes, the risks may increase. For this reason, you may need commercial boat insurance that’s valued at a higher rate than a basic policy. How much you need depends on how you operate your boat and the risks it presents.

Liability Insurance Protections for Commercial Boat Owners

Estimating the amount of liability insurance necessary is a challenge. There are many factors that play a role in this selection, though most business owners benefit from basic policies. There are several factors that will play a role in the amount of coverage you need.

• Do you bring people on board your boat? If you operate a charter service, for example, your risks may be higher because you’ll be providing a service to customers on your property, increasing the risk of injury.
  
  
• Do you haul highly valuable cargo or expensive inventory from place to place? Your coverage needs to be high enough to protect the value of that cargo at least.
  
  
• The larger the boat is, the more damage it can create in a situation where the boat impacts others or other property. The size of the engine plays a role in this as well.
  
  
• Where you operate can play a role in your needs as well. Those operating on the ocean or larger seas are likely to need more protection than those operating on a lake.

To determine the amount of general liability and umbrella liability coverage you need, work closely with your insurance provider. Commercial boat insurance is going to require a higher level of liability protection than simple boat insurance. However, this added coverage can provide you with the ability to maintain your business in the event of a catastrophic event. Otherwise, any negligence proven against your business could be the responsibility of your business (or yourself) to repay. With proper coverage, though, your risk may be lessened and you can operate safely.