You’re taking refuge for a sun-packed day on the lake with your family in a pontoon boat. Life vest? Check! Cold, sandwiches, drinks? Check! Kids and dogs? Get them. But you may not remember one thing—boat insurance.
Alright alright. Maybe boat insurance isn’t something you can form in cold weather. But you still need it.
We’re going to break down everything you need to know so you can hit that sprinkle with confidence!
What is Ship Insurance?
There’s absolutely nothing more fun than traveling to the Gulf of Mexico on Jet Snowboarding looking for dolphins (and trying not to run into them!).
But when the inevitable crash comes, boat insurance will soon become your new friend.
Ship insurance is a call insurance for 3 types of insurance: ship insurance, cruise ship insurance and individual ship insurance. This includes points such as damage to your boat, yacht or Jet Snowboarding. You can also get onboard liability coverage that pays for physical injury and clinical costs if a passenger or other person is injured in an accident you cause.
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Homeowners insurance and auto insurance coverage only cover certain types of boats—anything no faster than 25 miles an hour.1 (Let’s hear it for canoeing!) But if you actually have a bigger or faster boat, chances are good. You need extra protection.
How Does Ship Insurance Work?
Ship insurance works like any other insurance coverage. You pay a regular monthly premium and the insurance provider agrees to help with expenses for anything covered in the plan. After you pay a certain amount of your own money for the incident—called a deductible—the insurance company will start making contributions.
We’ll break down every type of boat insurance so you can determine what you need.
Boat insurance protects you if your boat is damaged or damaged. It can also include things like robbery, towing, injury to other people, and damage to various boats or other people’s property—as if you didn’t see your neighbor’s dock in the fog and turned it into firewood. Oops!
Boat insurance usually covers any boat with an electric motor or sail. Floating points and have engines that can travel 25 miles every hour, such as:
If you cause an accident, liability protection will cover costs related to property damage, legal fees and clinical costs for anyone else involved. Because the last point you want to take home from that summer trip to the lake house is the $100,000 clinical fee.
However, boat insurance does not cover everything. Like if you and a shark decide to do a Jaws reenactment and it breaks your fishing boat—it’s not protected. The insurance provider will also not cover points such as normal damage due to your boat getting old, or damage from fish, dolphin or shellfish attacks.
You can also get a boat insurance attachment to actually turbocharge your plan:
But be careful with this. If your boat is paid for—and you have sufficient cash for an emergency situation—you won’t need this attachment. (And if you’re resetting production on the boat, insurance attachments will only cost you more money. Sell your boat and jump into the fast lane to ending it debt free!)
To really make sure you’re getting the right protection, we recommend working with one of our Supported Local Services (ELP) companies. Our pros are experts in all types of insurance and will help you get the right amount of boat insurance.
And if you’re trying to come up with a name for your new boat, here are some options inspiration from the internet:
Cruise Ship Insurance
Because cruise ships are bigger (sometimes much bigger) than regular fishing boats—and you can use them to sail around the world!—yacht insurance coverage is broader than many other types of boat insurance. So while cruises imply more fun, excitement and crazy memories, they also imply more risk.
Cruise ship insurance is also more expensive because cruise ship costs are more expensive. Deductibles are based on a portion of what a cruise ship is eligible for. So a 1% insurance reduction on a $300,000 private yacht would imply a $3,000 insurance reduction.
With cruise ship insurance, you will get 2 layers of protection: 1) bilge insurance and 2) so-called P&I (cover and indemnity).
Hull insurance (you think) protects the hull. So if it breaks, you won’t be stuck paying all the costs.
The P&I component is more complicated. This consists of items such as shore and maintenance worker coverage, Jones Act coverage to protect cruise ship teams, and any legal fees that arise if you are taken legal action.
Individual Ship Insurance
Individual boat insurance (PWC) works a lot like boat and yacht insurance, it only covers recreational vehicles like Jet Skis. These babies are great fun, but most homeowners insurance coverage won’t cover them.
Individual boat insurance provides you with liability coverage if you hit someone and you are taken legal action against them. You will also get physical injury coverage for other people who are injured in an accident. And lastly, it covers property damage, robbery and towing.
When researching coverage for your PWC, make sure your coverage consists of the places you plan to use it. Some plans have limits on where you can go.
How Much Does Ship Insurance Cost?
Since you are a professional in boat insurance, let’s see how much boat insurance costs.
The average boat owner pays between $200 and $500 per year for boat insurance. However the bigger and more expensive water boats, you may have to pay between 1-5% of the boat price.
Your exact cost will vary based on factors such as the type of boat, how much it was lost, its age, your age, where you live, and any safety features you have (or don’t have). The dimensions of the electric motor also contribute. So if you need speed, be prepared to feel the pinch—in your wallet.
Do I Need Ship Insurance?
Many specs don’t require you to have boat insurance, but it’s still a good idea. And if your boat isn’t completed, the lender may need it. Also, the marina where you dock your boat sometimes asks you to get it.
If you only have a canoe, kayak or rowboat, check to see if your landlord or car insurance covers it. Or ask your insurance representative to come directly there for you. You may be currently protected.
But if you actually own a larger boat—such as a fishing boat, speedboat, yacht, or pontoon—you will need boat insurance to protect your financial resources from costly accidents.
It’s also a smart idea to have year-round boat insurance for accidents no matter if it’s the off-season.
While you’re out there having fun in the hot summer sun, think how much better that splash will feel when you know you’re protected.
Ship Insurance: What You Should Know Before You Hit The Sprinkles
When you walk down the freeway seeing jet skis and waterboats being transported to their location, it’s a certain sign that summer is here! For those who live in the same four seasons, you have missed the days of fishing, traveling and all the fun chore that the boating period brings. However, before your initial introduction, it is important to take the necessary measures to ensure you and your boat are well protected.
When is it Safe to Winterize Your Boat?
De-winterizing is your first chance to clean, inspect and make necessary repairs to your boat after months of remaining in storage. Whether you do it yourself or hire a professional, this process, if done correctly, can save you huge costs in the future. It’s important to hold off until the last spring frost to prepare your boat for the boating period, or you risk major damage to your boat’s engine.
Are You Really Guaranteed?
Before you officially introduce period boating, take steps to ensure your boat insurance remains a good buy. Whether you’re toying with jet skis, piloting your yacht in the blue ocean, or just relaxing in your pontoon boat, having the right boat insurance is important. With owned boats comes the added obligation of direct exposure. Coast Protect releases an annual log that provides statistics relating to boating accidents, injuries, and deaths. If you or someone running your boat is linked to an accident and found to be irresponsible, there is no opportunity to determine in advance what the financial consequences could be for you.
Most homeowners insurance coverage consists of liability coverage for a specific vessel. However, dimensional and horsepower limitations were used. Smaller boats with limited or no engine power, such as canoes, small sailboats, and fishing boats, can be protected. Also if your boat meets the coverage criteria under your homeowner’s plan, the coverage offered for physical damage under a homeowner’s plan is usually very limited (much less compared to $2,000). The more valuable watercraft should be written by the boat or yacht insurance themselves. It is always recommended that you guarantee a high limit of liability and include your boat for your individual extra liability umbrella plans.
What Does My Representative Need To Get The Right Insurance?
Many factors go into writing a boat plan, but your insurance consultant will need some basic information to give you a quote:
- Year, make and model of ship, hull ID number, size and value.
- Engine year, brand, serial number, horsepower and maximum speed.
- Define registration.
- A summary of the specific waters you will explore.
- The place where the boat will be moored and stored (when not in use).
- The lead driver, their boating experience and completed safety courses and/or licenses.
- How boats are labeled.
- Background loss.
- Current boat survey for boats over ten years old.
For larger yachts and waterfront exposure, coverage may be harder to come by. The insurance provider will need additional information, such as a hurricane plan. They may also require that you use a full-time captain.
When evaluating your insurance coverage or comparing insurance estimates from several insurance companies, you should understand the coverages and limitations in the plan. You may find that certain tasks are limited or omitted (ie, chartering, racing) in one package contract, but not in another. As with insurance coverage, it is important to know how your contract is read.
To help understand your insurance coverage and ensure that your coverage needs are met, talk to your trusted consultant.
Is the Ship Covered By Your Liability Plan?
Some companies, such as ferryboats and industrial fishermen, use boats in their day-to-day procedures. Others use boats for purposes related to their main job. An example is a design company that rents out private yachts to lure visiting customers. Companies that use ships for any purpose should not rely on their basic liability insurance to protect them against ship-related claims. This is because liability plans eliminate coverage for most (but not all) boat-related claims. If your company has used ships, you should understand the types of claims covered and not covered by your plan.
Most basic liability plans include exemptions under Coverage A (Physical Injury and Property Damage Liability) eligible Aircraft, Car, or Ship. The exclusion eliminates coverage for physical injury or property damage that occurs from the ownership, maintenance or use of a boat that you (or otherwise insured) own or operate. It also excludes claims arising from any vessel that you (or other warranties) charter, acquire, or delegate to others.
Boat exceptions are imposed on boat drivers as well as anyone who supervises or monitors such person. For example, suppose that a company organizes a worker excursion on a cabin cruiser it owns. The excursion takes place in a lake close to your workplace. Expense, your company’s head of state, is such a skilled helmsman that he steers the ship into the middle of the lake and drops support.
An hour after the trip, a worker named Note asked permission to take the boat for a spin. Records assure Fee that he is a skilled boat pilot so Fee agrees. Note lifting support and taking control of the rudder. Twenty minutes later Note accidentally crashes his car into a rowboat, injuring the occupants. The injured traveler sued Note, alleging that his ship’s irresponsible procedures were the main reason for the accident. He also sued Fee for irresponsible trust, alleging that Fee added to the crash unable to properly monitor Note. Both claims are eliminated by the exemption of the ship in your company liability plan.
Coverage Provided by the Exception
The ship exception includes an exception that provides coverage for 3 types of claims.
Boat at Your Facility
One exception applies to physical injury or property damage that occurs from a watercraft located at your facility. For example, suppose your company owns a small motorboat that it uses to take customers on periodic fishing trips. You store the boat in the shed behind your workplace all winter. One day in early spring, you are in the barn cleaning a boat when a client stops to look at a purchase. He was blown away by the boat and tried to climb in. Unfortunately, his leg slipped and he fell, breaking his hip. If a client demands payment from your company for the injury, your liability plan should cover the claim.
Boat Not Owned
Other exceptions include physical injury or property damage that occurs as a result of an incident including boats that are not covered by any warranty. This exception is based on 2 issues. First, the boat must be much smaller than the size specified in the plan. The typical dimensional limit is 26 feet but some extended coverage plans or recommendations include waterboats up to 50 feet as well as 75 feet.
Second, boats that are not owned are protected only if they are not used to transport individuals or property for a fee. For certain circumstances, let’s say you rent a 25-foot sailboat for a corporate event and welcome 5 people for a boat trip. To finance the rent, you charge each visitor $25. If a visitor is injured on the boat and demands payment, the claim will not be covered by your liability plan.
The third exception includes your alleged liability under a guaranteed contract for the ownership, maintenance or use of the boat. For example, you rent a 25-foot boat from Les Bateaux. The charter contract requires you to indemnify the charter company for any physical injury or property damage you cause to a third party while using the boat. If you accidentally injure someone or damage someone’s property while operating a charter boat and the aggrieved party seeks damages from Les Bateaux, your plan must cover the costs of compensation for the aggrieved party.
No Protection for Damage to Ship
The boat charter contract may hold you responsible for any physical damage you cause to the boat itself in connection with the charter contract. Such damages are not covered by the basic liability plan. This is because a liability plan eliminates property damage to property you own, rent, or live in. They also eliminate property damage in your care, trust or control.
If your company owns boats that are used for business purposes, you will need to purchase boat liability insurance. This coverage is often written in combination with boat physical damage insurance (called hull coverage) under a single plan. Consult your representative or broker for information.