Boat Rental Liability Insurance

 

Before anything else, you need liability insurance to rent out your boat. Also referred to as watercraft liability, boat rental liability insurance is a specialized form of coverage that protects boat rental businesses financially if any of their watercraft gets involved in accidents and causes third-party property damage or injuries.

 

Your preferred insurance company can write you a boat rental company insurance to cover any of the following water vessels:

 

• Canoes
• Houseboats
• Kayaks
• Pedal boats
• Sailboats
• Mini jet boats
• Water bikes

 

What Coverage Does Boat Rental Liability Offer?

 

We’ve only mentioned superficially what boat rental insurance covers. Let’s now try to get into details about the types of coverage the policy provides.

 

• Third-party body injuries – As the name suggests, this policy protects you when your watercraft causes physical injuries to third parties. The victim will likely file a claim against you seeking compensation and medical bills.
• Property damage – Your rental boat might cause damage to other marine vessels, dock, equipment, or other surrounding property. All these require repairs, replacement, and compensation. Your boat hire insurance can cover these expenses.
• Wreckage removal – If your boat sinks underwater, the law requires you to remove it. Instead of using your money, you can leverage your boat rental insurance policy to pay the removal costs.

Boat Rental Professional Liability Insurance

Professional liability insurance for boat rental businesses provides protection if you committed errors and omissions and inflicted financial or economic harm to clients. The language of this insurance policy provides coverage for the following perils:

• Negligence
• Violation of good faith
• Violation of fair dealing
• Misrepresentation
• Other acts considered errors and omissions

Employer’s Liability Insurance for Boat Rental Business

Employer’s liability insurance will cover expenses if an employee decides to sue you for negligence after sustaining a work-related injury or disease. In practice, this insurance will cover attorney fees, administrative costs, settlements, and other legal expenses on your behalf.

Employment Practices Liability Insurance for Boat Rental Business

Employer’s practices liability insurance for boat rental businesses will cover expenses if an employee sues you for sexual harassment, wrongful termination, discrimination, and other violation of employee rights. Expenses covered are attorney fees, settlements, administrative costs, etc.

Workers Compensation Insurance for Boat Rental Business

Workers’ compensation insurance will cover expenses if an employee sustains a work-related injury or disease. Specific costs covered are:

• Medical treatment  – If an employee suffers from a work-related injury or disease and needs surgery or therapies, workers’ compensation insurance will kick in and will pay for expenses
• Hospitalization – Workers’ compensation insurance will see to it that your employee enjoys adequate medical care after experiencing a work-related injury or disease. It will cover hospital bills no matter how long the employee needs to stay
• Medication – Workers compensation insurance ensures that your employee gets needed medicines by providing the money to be used
• Rehabilitation – If an employee of your boat rental business needs to rehab, workers’ compensation insurance will apply. It will cover therapist fees, rehabilitation costs, and other expenses on your business’s behalf so no losses are incurred

 

How to Minimize Liability Risks as a Boat Renter

 

Last year saw the number of new boaters increase, which increased risks for most boat renters. While being a boat insurance policyholder keeps your mind at peace, the best defense against claims is to avoid risks. Here are some practical tips for reducing liability:

 

• Always see to it that all boats for rental are in pristine condition
• Prioritize renting out boats made by trusted brands
• Take a full test ride with your renters to ensure they understand how to operate the vessel
• Offer free safety gear
• Offer your renter a detailed safety manual and the possible scenarios

 

Why is Boat Rental Insurance Coverage Important?

 

When a vacationer rents out a boat from you, then chances are they might get involved in an accident that results in third-party injuries or property damage. In such a case, you’ll be held liable. You might be wondering: Isn’t the client who’s operating the water vessel responsible for the accident and the associated damages? On the contrary, you’re the one liable for the property damages and/or injuries.

 

We operate in a litigious society, and the accident victim can easily file a claim against you. Without the right coverage, you’ll have to pay for the medical expenses, pain and suffering, and repair or replace any damaged property.

 

Boat rental business insurance provides the financial coverage to cater to any related litigation and attorney fees. The policy can extend coverage for repairing and replacing your damaged boats. Investing in the right coverage works in your interest because your business will see increased client traffic since customers look to partner with renters with proper coverage.

 

What Coverage Options Do You Have for Boat Rental Insurance?

 

Although it’s not mandatory to have boat rental insurance in most states, not having the policy leaves your business financially vulnerable. You need not worry about insurance since you have several alternatives, some of which can allow you to transfer the insurance costs to the boat renter. Although these options are different, they’ll protect you when the unexpected occurs. So, what options do you have?

 

Online Peer-to-Peer (P2P) Boat Rentals

 

Some sites allow you to list your boat for hire and take advantage of peer-to-peer insurance coverage . If a prospective renter browses the website and rents your boat, part of their rental cost will include the insurance fee. It’s a straightforward means of insuring your rental boats without much headache.

 

Think of it as Airbnb, but for boats. You list your boat for hire, and the site takes a small fraction of the proceedings. P2P websites comprise seasoned and professional boat operators who’ve come together to offer boat rental services. These large, established rental companies usually have comprehensive P2P boat rental insurance through the website’s plan. Boatsetter and GetMyBoat are examples of insurance platforms that provide tailored P2P policies.

 

Peer-to-peer insurance coverage is different from recreation insurance. The latter covers recreational vehicles (RVs) and is a separate coverage from the standard auto coverage or homeowners insurance. The RV coverage usually doesn’t cover boat rentals.

Contacting a Boat Insurance Company

 

Another alternative is to contact your boat insurance provider directly to work out the insurance price. Visit insurers’ sites and shop around for policies. That involves getting and comparing various quotes. Also, contact the company directly by phone and ask for the policy cost.

 

You can also decide to work with an agent. An upside to working with an insurance agent is that they are experienced in the boat insurance space. However, ensure you’re honest about your rental company when filing your boat rental insurance application. An agent can help you with risk planning and can advise and provide new insights into the risks involved in renting a boat.

 

Boat Rental Business Insurance Cost

 

It’s not easy to determine precisely how much boat rental insurance cost. Policy costs vary widely based on many factors. Some of these factors include:

 

• Type of boat
• The boat’s engine/motor
• The marine vessel’s condition
• Your age and the boat’s too
• The boat’s use
• Location
• Credit score
• Driving record

 

The average cost of boat rental insurance is $41.67 per month or $500.04 per year for a $1 million general liability coverage. Your credit card boat rental insurance can increase if you own a high-end or huge boat, such as a yacht or sailboat, which will cost you 1-5% of the marine craft’s market value.

 

It would also be best to know what liability limit you need. For instance, BoatUS provides daily boat rental insurance with a $100,000 to $1,000,000 coverage limit. Insurance limits vary from carrier to carrier, and you need to call your insurance provider to know how much you can get.

 

For more idea about the cost, take a look at this table that shows the rates of the best boat rental insurance companies:

 

Best Boat Rental Insurance Carriers

 

You have many options for companies that can provide insurance for renting a boat. Each of these boat rental insurance carriers excels in underwriting policies for specific types of clients. Hence, it’s critical to find the best provider for your insurance needs. We are here to help you find the right insurance policy for your boat rental company, and that’s why we’ve reviewed the top insurance providers. Read to know their pros, cons, and pricing for a $1 million general liability coverage.

 

 

 

CoverWallet Boat Rental Insurance

 

 

Pros

 

• Manage your boat rental insurance with the MyCoverWallet app or CoverWallet website
• Compare quotes online and get covered at the cheapest price
• Cancel your policy anytime

 

Cons

 

• Not an insurance company but a broker selling the quotes of its partners

 

 

CoverWallet gets you the quotes of all carriers in the US offering boat rental insurance. With this carrier, compare quotes, buy a policy, and manage your insurance online. Coverages customers get for their boats are bodily injury liability, property damage liability, and physical damage coverage.

 

 

 

Best for: Boat rental insurance online quotes comparison online

 

Average cost: $41 per month

 

Our rating: 10/10

 

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Geico Boat Rental Insurance

 

 

Pros

 

• Provides coverage for wide-ranging types of vessels
• Multiple policies to cover many risks
• Coverage available in all 50 states

 

Cons

 

• Does not offer insurance in California; buyers in the state can get coverage from the Boat Association Insurance Services

 

 

 

Geico provides boat rental insurance to cover the theft or damage to a range of water vessels, including sailboats, motorboats, and other types of watercraft. This carrier’s PWC rental insurance policy covers several parts of a watercraft. These include the hull, furnishing, motor, and more.

 

Typically, Geico boat insurance policies cover you in various circumstances. You’ll get coverage for damage to another boat, bodily injury or death of a third party, and damage to other property. Still, you can get other additional policies, such as:

 

• On and off-water towing coverage
• Ice/freeze coverage
• Fishing equipment coverage

 

 

Best for : Private boat owners looking boat rental insurance

 

Average cost : $44 per month

 

Rating : 9/10

 

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Progressive Boat Rental Insurance

 

 

Pros

 

• Policy includes wreckage removal and fuel spillage liability
• You can choose not to have deductibles
• Accident forgiveness benefits

 

Cons

 

• Offers limited coverage for expensive boats in hurricane-prone states

 

 

 

Progressive is one of the few insurance carriers that include wreckage removal and accidental oil spillage in its standard boat rental insurance policy, although with limitations. The company only offers wreckage coverage only when it’s legally required and oil spillage coverage up to your watercraft rental insurance limit.

 

The insurer’s marine rental insurance also includes accident forgiveness. This policy keeps the insurance prices from increasing for clients whose claims are less than $500. Boat operators who’ve been customers for four years and haven’t caused an accident in three years don’t pay more, regardless of the boat type.

 

Progressive further helps you save if you enroll multiple boats in one policy. For example, if you make money by renting out pontoon boats, you save on premiums if you enroll all of them in Progressive’s pontoon boat rental insurance.

 

 

 

Best for : Policy discounts

 

Average cost : $52.78 per month

 

Our rating : 8/10

 

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State Farm Boat Rental Insurance

 

 

Pros

 

• Offers coverage for a wide range of water vessels

 

Cons

 

• No cash value coverage on boats

 

 

State Farm was established in 1992 and ranks among the top boat rental insurance companies. The company offers insurance to cover third-party bodily injuries and damages. It also reimburses a portion of your rental costs if your rental boat is in the repair shop. When someone hires your boat, State Farm will cover the damages to your boat due to an accident.

 

You also stand a chance to get State Farm insurance discounts but with some conditions. For instance, taking a safety course and boating in freshwater. The Illinois-based boat rental insurance company provides other forms of coverage. They include:

 

• Incidental and commercial fishing policy
• Uninsured/underinsured boat coverage

 

 

 

Best for : Boat renters looking for insurance with quality customer service

 

Average cost : $55 per month

 

Our rating : 6/10

 

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USAA Boat Rental Insurance

 

 

Pros

 

• Discounts on boat rental insurance
• Doesn’t mind referring clients to other providers to ensure they get the best coverage
• Customized yacht and houseboat rental insurance
• Members earn a 5% discount

 

Cons

 

• Does not sell insurance for non-military personnel

 

 

 

USAA was established in San Antonio by 25 military personnel who joined hands to insure each other’s car. The company boasts an extensive insurance portfolio, including reliable boat rental insurance.

 

With USAA, you can purchase insurance coverage for a PWC, fishing boat, motorboat, sailboat, pontoon, yacht, etc. Your coverage will protect your rental watercraft from theft, vandalism, fire, extreme weather events, property damage, and third-party bodily injuries.

 

Additionally, USAA members get price reductions for most water vessels and PWCs valued below $150,000.The insurance company also offers safety discounts. You can be eligible for these discounts by being claims-free, completing a state-approved safety program, and being a responsible boat operator.

 

 

 

Best for : Boat rental businesses owned by ex-military or active military personnel

 

Average cost : $58.63 per month

 

Our rating :  6/10

 

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Boatsetter Insurance

 

Pros

 

• Partners with Geico Marine to offer a safe P2P platform for renters and boat owners
• On-water assistance through TowBoatUS
• Offers insurance policies, processing costs, and additional payments with perks

 

Cons

 

• Other rival platforms have earned better reviews and ratings

 

 

 

Boatsetter is a renowned P2P boat rental insurance provider dedicated to providing quality insurance to boat renters using its platform. The P2P website works together with Geico Marine and BoatUS to ensure you operate a rental business with top-notch safety, thus reducing your liability risks.

 

The company prides itself in being one of the first boat rental websites providing insurance for renting a boat with each order. Therefore, you’ll get the coverage you need every time you rent out a watercraft with assistance from TowBoatUS, whether you need help on water or assistance with your claims processing.

 

However, it’s worth noting that the rules and requirements for Boatsetter rental insurance vary, depending on the regulations within your state. Hence, it would help if you inquired on the platform to find out the policy details (based on your location) to avoid last-minute confusion.

 

The P2P boat hire insurance provider also provides clear information on various concerns boat rental operators have since it runs a website having answers to some questions.

 

 

 

Best for : Renters using peer-to-peer rental program

 

Average cost : $60 per month

 

Our rating : 8/10

 

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GetMyBoat Insurance

 

Pros

 

• Offers insurance through an online app
• Insurance policies available globally
• Partners with Falvey Yacht Insurance, a seasoned marine insurance carrier

 

Cons

 

• Clients requiring traditional insurance for renting out a boat may have to look elsewhere

 

 

 

Like Boatsetter, GetMyBoat is a platform for boat owners and renters. The boat rental insurance offers the latest insurance and a range of financial services and products through a mobile app.

 

GetMyBoat works with its members to offer client-focused insurance policies. Its newly-created global boat rental coverage promises tailored coverage for users and non-users worldwide. All its insurance policies are underwritten by Falvey Yacht Insurance, a globally-acclaimed insurance company that provides daily, weekly, and personalized temporary boat rental insurance.

 

The platform provides three one-day boat rental insurance plans. These include Basic, Plus, and Premium plans. Once you choose your preferred plan, you’ll be directed to a page where you’ll have to fill out a form with information on the following: type of boat, the captain, and payment information. Your insurance plan will be expedited within minutes, even coverage for an expensive yacht.

 

 

 

Best for : P2P boat renters looking for mobile-first insurance management

 

Average cost : $65 per month

 

Our rating : 8/10