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Risk Management Bulletin

The Benefits and Importance of Boat Rental Liability Insurance

By March 1, 2017No Comments

If you love boating and live near an exotic vacation spot, ocean, local marina or lake, you may operate a boat rental business. It allows you to share your passion with others as you make a living doing what you love. Whether you rent boats to the local residents or vacationers by the hour, day or week or own a marina and rent boats to guests, know as much as possible about boat rental liability insurance as you protect your business and personal assets.

Why Do You Need Boat Rental Liability Insurance?

If someone who rents a boat from you causes an accident, injures someone or is injured while operating or riding in the watercraft, you are liable for the repair or medical payments. These expenses add up quickly, and you could lose your business and personal assets.

With boat rental liability insurance, you decrease your risk and protect your assets since it covers any damages or injuries caused by your watercraft. It also can cover repairs to your watercraft after an accident a renter causes. Boat rental insurance can also improve your business because customers are more likely to rent a boat from a company with liability coverage that protects their personal assets.

What Does Boat Rental Liability Insurance Cover?

Typically, boat rental liability insurance covers a variety of watercraft, including:

  • Sailboats under 26′
  • Powerboats
  • Houseboats up to 65′
  • Canoes
  • Kayaks
  • Pedal boats
  • Water bikes
  • Mini jet boats
  • Personal watercraft

All liability coverage is customizable based on your needs. Your coverage may include:

  • Watercraft Liability with varying levels of coverage
  • Premises Liability that covers events that occur on your boat rental business premises
  • Hull Coverage that pays for physical damage to your watercraft’s hull and possibly the engine and equipment

How Much Boat Rental Liability Insurance do you Need?

Every boat rental business is different, and your unique circumstances affect how much liability insurance you need. As your risk increases, your costs increase. For example, the size of your fleet, cost of your boats and amount of business you do affects your premiums.

Where do you Buy Boat Rental Liability Insurance?

Specialized insurance agencies provide boat rental liability insurance. When you contact them, provide details about your business, including a copy of the watercraft rental agreement and checkout procedure. You’ll complete an insurance application, which is evaluated by a commercial marine expert, and will receive coverage details after your application is approved.

Protect your boat rental business and personal assets with boat rental liability insurance. Contact your insurance agent for more information and a customized quote today.