Every trip out on the water is a new adventure – and while that’s exciting, it also means you have to expect the unexpected. Luckily, preparation is key for any fishing charter. Insuring your boat goes a long way towards protecting you, your guests, and your vessel against any surprise encounters.
Not fully insuring your boat can have a negative impact on your reputation, as well as racking up thousands of dollars in legal costs. Keeping your insurance up to date shows guests that you’re fishing legally, and gives them peace of mind when they’re out on the water with you. They know they’re in safe hands.
New to the fishing charter industry and want to make sure you’ve covered everything when it comes to boat insurance? Don’t worry. Below, we’ve covered the why’s, what’s, and how’s of getting your boat insured. Let’s dive in!
What is boat insurance and do I need it?
Simply put, boat insurance functions similarly to car or home insurance. It protects your vessel itself in the case of unexpected damage or accidents, and some policies even protect the contents of the vessel, for example, fishing gear.
Charter boat insurance goes a step further, with the main aim being to protect the passengers on your boat. Carrying a number of guests out onto the water comes with its own risks, and charter boat insurance exists to make sure you and your guests are covered in the case of any unexpected accidents.
When it comes to whether or not you need basic boat insurance, it’s your decision to make, especially as only two US states actually legally require it as of now (Utah and Arkansas). However, it’s highly likely that the marina or dock you keep your boat at will place insurance requirements on your boat. Your bank may also require it, especially if you take out a boat loan.
In addition to what’s legally required of you, having an insurance policy can help balance out the risks associated with chartering a boat. As you know, boats are a serious investment. This means that they can be a significant cost in the event of an unexpected repair or accident. So our answer to whether or not you need boat insurance is a resounding yes, especially when you plan to take guests out on your vessel.
Think of it this way: your vessel is your livelihood – it’s what the foundation of your business rests on. Making sure it’s protected will go a long way towards protecting your charter company itself. Liability insurance (basic boat insurance) is usually the minimum that you’ll need, and we definitely recommend getting charter boat insurance to ensure the safety of your guests, too.
What does typical boat insurance cover?
Although what your boat insurance will actually cover depends on the insurance policy you opt for, here’s a breakdown of the protections you should look for in a good typical policy:
- Loss or damage to your vessel.
- Property liability coverage (covers the cost of damages to someone else’s property after an accident you cause).
- Passenger injury, often called bodily injury liability.
- Hull coverage, which applies to any physical damage caused to your boat or trailer.
Optional features, especially for charter boat insurance, include:
- Liability coverage for any crew members you employ.
- Marine general liability (for land-based property like an office or store).
- Shoreside liability.
Questions to Ask When Setting Up Your Insurance
As we mentioned, boat insurance can differ depending on what you want your policy to include. It’s important to make sure that you opt for a policy that goes hand-in-hand with your charter business. Here are some questions to ask insurance providers and make sure you choose the right option for you:
- Does the policy cover the cost of towing my vessel?
- Is personal property on the boat, such as fishing gear, covered in this policy?
- Are there any restrictions on which waterways I’m allowed to navigate?
What are the costs like?
Again, the actual costs you’ll be paying out will differ depending on where in the US (or world) you’re located, the type of boat you have, and which policy you end up choosing.
Liability insurance is the minimum insurance that’s usually required by most banks and marinas, and boat insurance experts recommend opting for at least $1,000,000 in liability insurance. The recommended cost can be even higher if you run a fast, powerful boat.
Boat insurance can cost anything from around $300 to $500 dollars per year, based on the type of boat you have and what you want to cover. The more research and price comparisons you do, the more likely you are to get a better deal. Here are a few pointers to help you keep your costs down:
- Just buy what you need: Make sure you know exactly what you need so you can avoid paying for additional policies that you don’t require.
- Take a boater safety course: Almost all insurers offer a discount for boaters that have recently completed an approved boater safety course.
- Spend on safety gear: Insurance companies may give you an additional discount for having extra safety features on board your vessel.
How can I get boat insurance?
First things first, check with your home insurance provider to see if your vessel is already covered, or if your home insurance can be amended to include it. This is especially effective if you run your trips from a small boat or canoes. But it usually won’t cover larger vessels.
When looking for charter boat insurance, we’d recommend choosing a domestic company with an A or 5-star rating, when possible. Look out for the following:
- Get a Hull and Machinery policy that pays on agreed value.
- Check whether your Hull and Machinery coverage is all risk or named hazards. The former is more inclusive and usually a better deal.
- Check deductibles. Basically, the higher the deductible, the lower the premium. In the case of minor damage, you may end up paying most of the claim.
- Check operating limits and mandatory lay-up. Five months is typical.
- Get passenger medical insurance on top of the full liability coverage.
- Have inboard engines? Be sure to get pollution coverage.
- If your passengers will leave the boat during the trip, for example, to go snorkeling, get shore excursion coverage.
- Don’t forget to get crew coverage for any employees on the boat.
How can I show my FishingBooker customers that I’m insured?
Uploading your insurance document to FishingBooker’s My Trips app will help you save money and keep your professional reputation. You can upload your boat insurance documents here, and they’ll be accessible offline once you’ve done so. Customers will be able to see that you’re fully insured and fishing within the law!
We want to hear all about your boat insurance in the comments! What kind of policies are important to you? Any tips to share with fellow captains? Get in touch and let us know below.
