Owning a marine business that uses commercial boating services is a big responsibility. Not only do you need to focus on covering all of the main liabilities you face, but you also need to ensure that the vessels themselves, the passengers, as well as all of the cargo is equally covered as well. Due to these reasons, we have outlined some of the most important things to look for in a commercial boat insurance policy. These tips will help you to understand what to look for, what a professional plan looks like, and why having commercial boat insurance is essential.
What Is Commercial Boat Insurance?
Every business is unique and has its own set of goals and circumstances that they must overcome. Organizations that do business over the water face unique challenges and risks that could result in extensive costs if accidents occur. Commercial marine insurance can help minimize these risks by covering specified losses, liabilities, or damages that occur to commercially-owned vessels.
Commercial boat insurance, also referred to as commercial marine insurance, is a very important form of insurance that is most often required by commercial operations that operate by sea. These requirements are often mandated by law in order to keep passengers and cargo properly protected. There are three main types of policies typically found in a commercial boat insurance policy:
Cargo Coverage
If you have vessels that carry products internationally, ocean marine insurance is something you most likely cannot skip out on – both legally and for cost reasons. It will protect you in the inevitable event of one of the following:
- Lost Cargo – If the shipment you’ve promised your clients never arrives, you could be held liable. This is true no matter if it was due to a collision, misplacement, or other unforeseen mishap.
- Legal Liability – A client could potentially take you to court to sue you for the payments they’ve already made on lost, late, or damaged goods. Without ocean marine insurance, you may be held responsible for your own legal fees.
- Lost Revenue – If a shipment is delayed for a long period of time, your client may no longer need the goods and could refuse to complete payment. Cargo coverage protects from these types of losses, in some cases.
Hull Coverage
Commercial boat insurance can also provide coverage against damage to the vessel itself and the machinery. Additionally, it will protect you if you lose the ship either at port or during a voyage. If you own or operate a marine vessel for commercial purposes, this kind of ocean marine policy may be essential to protecting your yacht, ferry, or boat and will save you an immense amount of money in the event of a bad accident.
Liability Coverage
Similar to general liability insurance, commercial boat insurance liability coverage can help to protect vessel owners from claims of bodily injury, personal injury, and property damage related to their services. Liability coverage is similar to Protection and Indemnity insurance, which covers liability against claims from your crew as well as liability from risks that are related to the hiring of the ship (e.g. cargo-related claims) and the passengers you are responsible for.
What To Look for In A Commercial Boat Insurance Plan
The most important thing to look for in a commercial boat insurance plan is that it covers your business from all of the unique risks that it faces. This is often done by using a combination of the above-mentioned policy sections within your plan.
For most businesses, they also benefit from working with insurance experts who can identify the unique risks that your operation faces and tailor the coverage specifically to your business’s needs. When the coverage is personalized, it is able to be much more cost-effective and provide a much deeper peace of mind for the policyholder.
Why Commercial Boat Insurance Is Essential
Accidents can happen at any time, and you never know when something may go wrong with the equipment or the weather during a voyage. Commercial boat insurance is vitally important due to the risky nature of the industry and the unpredictability of the ocean. Having a personally designed insurance plan can help your marine operation avoid extreme monetary damage without overpaying for elements of coverage that you may not even need.
Work With JMG Insurance Today
JMG Insurance Corp has been servicing the insurance needs of the Fairfield County area since 1916. Their team strives to make the insurance process as simple as possible for their valued clients.
