Are you a boat builder, boat dealer, lessor or shipyard or boat repair service? Of course, the main focus of your business is doing business. To do it right without the worries of all the associated risks, you need to have the specialized insurance coverage that will protect you from any of the related business liability risks.
Below is a brief synopsis of each of the different types of insurance as it relates to the specific industry niche.
Boat Manufacturers Coverage
The most difficult exposure related to the boat manufacturer is product liability. This insurance is generally underwritten on a claims basis and as specialty insurance. Also, due to the material used in the construction, as well as flammable adhesive agents. Due to the variety of materials used and the flammable adhesives and paint used in the construction of boats, insurance companies have considered property risks as high exposures.
Stored boats may also need coverage that includes those sold at the dealership.
Boat Dealer Coverage
Related insurance covers new boats as well as second-hand or third-hand boats sold by the dealer. Coverage for vessels includes vessels operated for land and water use. Insurance policies are designed to protect the boat dealer’s stock of boats, as well as associated accessories and supplies that are also sold to the public. Correlated insurance incorporates property and marine coverage and is generally written on an all risk basis. Boat or watercraft dealers insurance is similar to open automobile loss insurance and garage keepers statutory liability insurance coverage.
Boat rental coverage
Boat rental companies rent boats based on usage by the hour or day or as an extended rental throughout the summer season. Due to the risks of the water and the inexperience of the novice operator, the related exposure is at a higher level. Many commercial boat rental establishments are located in resort or hotel areas, limiting the rental business to the summer months. But because boats and boats need maintenance, repair, and storage when the season is over, exposure to physical damage exists year-round.
Coverage of ship/shipyard service and repair operations
Shipyards and boat repair and service malls repair and service boats entrusted to them by customers. These operations drag the boats to the shore during the fall, store them during the winter and launch them in the spring as well. The associated commercial general liability is similar to that of the auto repair shop, plus risks related to water activities.
Insurance companies see the dangers of boat mooring and storage as greater risks.