Florida is the epicenter of watercraft-based businesses offering sun and fun to visitors and residents alike. We find even the most experienced operators have questions about all the various coverage descriptions and options available to them to protect their operators, vessels and passengers. Below is a brief breakdown of the insurance descriptions and benefits for the coverage’s typically offered to protect these type businesses and their operations.
1. Liability Coverage
Also known as “General Liability”. This coverage protects you from claims of bodily injury or property damage caused to others or third parties that you are responsible for causing to some degree.
Charter Liability: Is specific coverage for accidents or injuries arising from your charter activities.
2. Hull and Machinery Coverage
This protects you for damage to your boat, coverage is usually based upon the value of the vessel and is usually on an Actual Cash Value (ACV) basis. Coverage is afforded whether from accidents, storms, or other incidents.
Special onboard equipment and machinery can also be insured if properly valued and described on your policy.
3. Protection and Indemnity (P&I)
P&I provides legal liability coverage for maritime activities, including environmental damage and/or personal injury to crew or passengers, and may include damage to other vessels.
4. Crew Coverage
Provides for protection for your crew in the event of injury or illness while working on the boat.
5. Passenger Coverage
Ensures medical coverage for passengers in case of injury during a charter.
6. Business Interruption
Protects you from the loss of income you suffer if your boat is out of commission due to a covered event, such as major repairs or damage.
7. Property Coverage
Similar to the Hull & Machinery described above and can extend protection to personal belongings of passengers and equipment used in your charter business.
8. Regulatory Compliance
Ensures your insurance meets all local and international regulations specific to charter boat operations.
There are additional marine insurance policies and coverage descriptions as well, these include
• Ocean Marine Cargo
• Six-Pack Charter Boats
• Boat Dealers and Marina Operators
• Ship repairers and vessel builders
• Marine Contractors
• Marine Artisans (Pleasure craft and Yachts)
• Municipal, Fire & Safety Boats
• Passenger Boats: Dinner, Sightseeing & Excursion
• Supply/Utility/Crew Boats (non-anchor handling)
• Passenger & Ferry Boats (up to 250 passengers)
Understanding the nuances of marine insurance and how policies and coverage respond is vital. Always ask if your insurance professional is experienced in writing your specific type business for your State. It is important your insurance Agent understands the protection and coverage you need to properly protect you and ensure you are in compliance with State laws.
Whether you’re running fishing charters or luxury cruises, having the right insurance will safeguard your business and ensure smooth sailing. At Harris Insurance, we specialize in providing tailored Charter Boat Insurance that meets all your needs. We’ve been rated among the top 10 insurance brokers in Florida, and we are happy to work with you to make sure you have the protection you and your business needs.
LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
