Commercial Boat Insurance

If your business relies on boats to get the job done, you need the right protection to guard against losses related to commercial property damage, lawsuits, and more. Commercial boat insurance or commercial marine insurance can help reimburse you for critical financial losses. Having this coverage can help your marine business stay afloat for many years to come.

Fortunately, a local independent insurance agent can help you find the right commercial boat insurance policy. They'll make sure you get set up with all the protection you need for your marine business. But first, here's a closer look at commercial marine insurance, what it covers, and more.

What Is Commercial Boat Insurance?

Commercial marine insurance, also known as commercial vessel insurance, is designed to protect businesses with a maritime or ocean focus. 

Commercial marine insurance coverage provides protection for the vessel itself, passengers and crew workers aboard the ship, and any goods or products transported by the ship. Coverage can reimburse boat owners and business owners for costs related to property damage, liability, and more.

Who Needs Commercial Marine Insurance?

If you run a boat school, own a commercial fishing boat, or operate a cruise ship, you likely need commercial marine insurance. The following types of businesses and vessels often need commercial boat insurance:

If you own any of these businesses or vessels, work with a local independent insurance agent to find the commercial marine insurance you need.

What Is Considered a Commercial Boat?

There are several types of commercial watercraft, including inshore fishing vessels, offshore fishing vessels, sightseeing charters, oil barges, ferries, tugboats, tour boats, and cruise ships. 

If you own a commercial boat, a personal boat insurance policy won't properly protect it. You need commercial insurance for your vessel to get reimbursement for collisions, accidents, business interruptions, physical damage, bodily injury, pollution clean-up, lost cargo, and more.

Why Do I Need Commercial Marine Insurance?

Marine businesses face all kinds of risks daily. Accidents and collisions can occur while transporting cargo over the ocean, while mooring, and even while docked. 

Without the right commercial boat insurance in place, you could be stuck paying for many different expenses, including repairs or replacements for damaged vessels, third-party bodily injuries or property damage, and lawsuits.

Your crew is another major component to consider. Employees can become ill or injured due to their job tasks, such as loading or unloading cargo, or due to the work environment itself, on or off the boat. 

Without commercial marine insurance, your business could have to pay for medical treatments and rehabilitation costs for affected workers. In short, having commercial boat insurance can help your business stay operational and not have to close down after an unexpected costly disaster.

What Does Commercial Boat Insurance Cover?

Commercial marine insurance policies come with several types of protection. The following coverages are typically included in commercial boat insurance:

• Protection and indemnity insurance: This coverage can reimburse marine businesses for costs related to liability claims stemming from collisions as well as expenses after wreckage removals. Coverage can also reimburse marine businesses for stowaways and repatriation or loss, theft, or damage to cargo.
• Marine liability insurance: This can reimburse marine businesses for various liability expenses, similar to general liability coverage. Third-party claims of bodily injury or personal property damage, including the cost of legal defense and settlements in a lawsuit, are covered.
• Hull coverage: This coverage can reimburse marine businesses for damage to an insured boat's hull, equipment, and machinery. Coverage is sometimes categorized as blue water (for ocean-traveling ships used for international shipping and trade) or brown water (for ships that are mainly used on or near coastal waterways).
• Pollution liability insurance: This coverage can reimburse marine businesses for the cost of pollution clean-up after an accident that leads to a spill. It can also cover property damage and bodily injury claims related to the incident.
• Workers' compensation insurance: This coverage can reimburse marine business employees for injuries or illnesses that arise because of their job duties or workplace. Coverage can also provide partial wage replacements for affected employees if they need time off work to recover.
• Uninsured boaters insurance: This coverage operates similarly to uninsured motorist insurance and provides coverage to marine businesses if any insured vessels are involved in a collision with a boater who doesn't carry adequate insurance.

An independent insurance agent can help you build the right business insurance policy for your marine company.

Additional Coverage Options to Consider

You may want to add a few more types of coverage to your commercial boat insurance policy. Some additional forms of coverage to consider include the following:

• Bumbershoot insurance: This is a special form of commercial umbrella insurance or excess liability insurance designed for marine businesses. It increases your existing liability coverage limits to $1 million or greater in case of a hefty lawsuit.
• Nets and gear coverage: This can reimburse marine businesses for lost, stolen, damaged, or destroyed equipment needed for the job.
• Stock-transit or cargo coverage: This can provide additional coverage for any products transported on your insured vessels.
• Crew coverage: This can supplement workers' comp and provide additional coverage against accidental death and dismemberment for your employees.

Ask your independent insurance agent about any additional types of commercial marine insurance you might want for your policy. They can help you customize your commercial boat insurance to satisfy your unique business's needs.

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How Much Is Commercial Boat Insurance?

The cost of commercial marine insurance can vary considerably depending on several factors. These often include the following:

The cost of your commercial boat insurance can also depend on the insurance company you choose. A local independent insurance agent can help you find an insurer that offers affordable commercial marine insurance near you.

An Independent Insurance Agent Can Help You Get a Commercial Boat Insurance Quote

When it's time to find the right commercial marine insurance, no one's better equipped to help than an independent insurance agent. Local independent insurance agents have access to multiple insurance carriers in your area, so they're free to shop and compare quotes and policies for you. 

They'll get you matched to a policy that offers the best overall blend of coverage and cost. And down the road, your agent will still be there to help you file commercial boat insurance claims or update your coverage as your business's needs evolve.