Ways To Save Money On Commercial Boat Insurance
Want to get that commercial boat insurance premium as low as it can go? Here are a few money saving tips.
Choose a high deductible. A deductible is the amount you need to pay before your insurance company begins to pay for damages to your commercial boat or losses. Choosing a high deductible will help to lower your insurance premium. So choose a deductible of $1,000 or higher and youll enjoy a lower premium.
Look for a layup discount. Many owners put their boats in storage during winter months. Check with your insurance company about a discount during these winter months. Ask your insurance company for a layup discount.
Get a limited navigational area discount. Dont travel far in your commercial boat? Ask your insurance company for a limited navigational area discount. It could help lower your commercial boat insurance premium.
Get all the latest safety equipment. For example, most insurance companies will give you credits for having automatic fire extinguishing systems in a boats engine compartment. So let your insurance company know of all the safety equipment on your boat. It could lower your commercial boat premium.
Have good maintenance and upkeep. You want your commercial boat to be in tip top shape when an insurance company orders a survey. A good report could help to lower your premium.
Do I Really Need Boat Insurance
That depends on your boat. A standard homeowners insurance policy will generally cover small, inexpensive watercraft like:
- Kayaks
- Jon boats
- Paddle boats
- Boats with low-powered engines
You can also add a liability rider to your homeowners insurance to cover property damage or injuries if you get in an accident with another boater.
But homeowners policies wont cover big, powerful boats. Youll need boat insurance for:
- Charter Boats Since your boat is your business, you may also need commercial insurance.
- Fishing Boats including bass boats, fancy offshore rigs and everything in between
- Houseboats Just like insuring a regular house, you need to insure your home on the water too.
- Personal Watercraft Watercraft like jet skis are super fun, but theyre also riskyhence the insurance.
- Pontoons Pontoons are where the partys at! So make sure your boat and your passengers are protected.
- Sailboats Activities like long distance travel, racing or historical reenactments require special coverage. Think of sailboats as the classic cars of the sea.
- Speedboats Fast boats are at higher risk for accidentswhich makes insurance a must.
- Yachts Luxury vessels need insurance because theyre more valuable and travel farther than most other boats.
All these boats need insurance even if it isnt required by state law. Why? Because if youre uninsured, a boating accident can ruin your futurein more ways than one.
How Are Yachts Categorized Concerning Insurance
A boat is any vessel that is 26 and smaller. These will have basic coverages and feel more like auto insurance policies.
However, a yacht is classified as 27 and larger, which will have broader, more specialized coverage. This is because yachts are more complicated, faster, bigger, and hold more stuff.
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Why Choose Anchor Marine
- The agents at Anchor Marine have extensive marine insurance experience, and also have experience as charter boat operators. In short we know your business and will do what it takes to get you a policy that not only suits your needs, but one that is cost effective. We are independent agent and will actively shop the market place to make sure you are getting proper coverage at the right price.
Mooring And Berth Fees
Mooring fees: Many people prefer to be in a dock suring the night rather than at anchor as it is calmer and you can hop onto land whenever you like. They can vary widely from port to port, but generally a mooring ball fee is quite reasonable. To get a mooring, you usually need to radio in on VHF 16 just to be sure, on a crewed yacht speak to your captain about your preferences and he will sort it for you!
Berth fees: If you are looking for an actual berth in a port, there will nearly always be a cost. These vary wildly with the port – a berth fee during high season in St Tropez or Ibiza can cost thousands of Euros, if they’re available at all. If your itinerary requires a berth, no matter where it is, please let us know well in advance so we can attempt to arrange it for you.
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Protection And Indemnity Vessel Policy Coverage
P& I indemnifies someone for personal injury or property damage caused by your vessel or suffered while a passenger aboard your vessel. It also pays to defend against lawsuits brought against you due to the above, and in many cases the chief function is to pay for an out-of-court settlement to prevent expensive litigation and potentially more costly damage awards.
What a plaintiff stands to gain in a lawsuit is limited by the circumstances and severity of the loss as well as the amount of the vessel owner’s assets.
Courts commonly adjust awards downward to reflect contributory negligence or the degree to which the plaintiffs actions contributed to his or her injury or loss.
The purpose of a Hull and Machinery policy is to get the boat back into operation as quickly as possible, and the purpose of P& I is to defend you in litigation, and to protect your assets in the event of a personal injury or damage award.
Charter Boat Insurance Coverage For:
- Physical damage caused by a collision with a submerged object
- Damage caused by a collision with another vessel
- Liability for bodily injury or damage to the property of others
- Damage to personal property on the charter boat
- Gas delivery, towing and assistance if your charter boat is stranded
- Theft of Charter Boat
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Auto & Renters Insurance Exceptions
However, auto insurance can stretch to the trailer that holds your boat while it is in transit, as well as damages that may be caused by your boat trailer if you take a turn too close.
Renters insurance also has the potential to protect your personal property such as clothes, furniture, or other items no matter where it is. If you were to be robbed on your boat, you could replace your belongings with a renters insurance policy.
Highly Rated Boat Insurers
At Theodore Tunick & Company we continue to strive at all times to provide you with highly rated insurers and use only those intermediaries of the highest caliber.
Security for VICL Members is provided by Lloyds of London, a 325 year old insurance market rated A+ by Standard and Poor. Lloyds wrote in excess of $22 billion of premiums in 2015. The policy is administered and issued by the Dual Group Ltd, the largest insurance underwriting agency in the world, with gross written premiums of $650 million and 400 employees in 24 offices in 13 countries. Dual is also the largest coverholder at Lloyds.
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What Are The Insurance Types You Should Consider For Your Fishing Charter
This is a standard coverage for businesses and its important for all travel and tourism companies. CGL insurance covers your fishing charter from claims of personal injuries that happen on land. Something as simple as a floor being mopped with too much water can cause serious injuries and lead to an expensive and frustrating lawsuit. If that happens, your CGL policy could provide you with coverage to defend the lawsuit.
What Is The Growth Potential For A Fishing Charter Business
Most fishing charter businesses operate out of a single location, because captains need to have an in-depth knowledge of the waters they fish. Operating in different regions — even if on the same body of water — reduces how much a captain will know about the fishing in each region.
Businesses may operate multiple boats out of a single harbor, though. A fishing charter business in Port Canaveral, Florida, for example, has two boats.
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Boat Insurance Coverage Faqs
Small Boat Insurance
What is the best coverage for my boat?
It is best to have what is known as an “All Risk” policy, which will provide coverage for all types of losses except those specifically excluded in the policy. Typical exclusions may include wear and tear, gradual deterioration, marring, denting, scratching, animal damage, manufacturer’s defects, defects in design, and ice and freezing.
How much should I insure my boat for?
You should insure your boat for the amount it would cost you to replace it with like kind and quality. This is called “Agreed Value” or “Stated Value” coverage, and in the event of a total loss, will pay the full insured amount. Beware of policies providing “Actual Cash Value” coverage, which means the value of your boat will be replacement cost less depreciation.
What other coverages can I expect with my policy?
The following are standard coverages with standard deductibles and average limits:
- Medical payments, $5,000
- $1,000 limit Personal effects, $250 deductible
- Uninsured boaters liability, between $300,000 and $500,000
- $500 to $1000 limit Towing and assistance, no deductible
- $1,000 limit Fishing equipment, $250 deductible
Who is allowed to operate my boat?
I live in an area where I can’t use my boat in the winter, but my lender requires it be insured year-round. What can I do?
Large Boat Insurance
What are the differences between boat and yacht insurance?
What should I look for in a yacht policy?
What is a normal deductible?
The Intended Use Of The Boat
A boats intended use can also determine how much the insurance company will charge a boat owner. This is especially true if the boat is being used for commercial purposes.
For example, a commercial fisherman or lobster hunter will usually pay a lot more for insurance than a person who uses their boat recreationally.
This is especially true if the person is using their boat as a charter or ferry boat.
Even the types of activities on the boat can affect the pricing of the insurance policy. For instance, a tour boat that serves alcohol will have a higher risk profile than a boat that does not.
In this case, the boat owner may have to add additional insurance riders onto their base plan.
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What Are Some Insider Tips For Jump Starting A Fishing Charter Business
When choosing a boat, business owners should look for one that is built for the type of water theyll be fishing in. Fishing in bayous and swamps may require a flat-bottomed boat that has a shallow draw, while heading miles offshore might call for a deep V-bottomed boat that is built to handle waves.
Additionally, business owners that plan on purchasing a used boat should be weary of buying a boat without an engine. Boats that dont have engines are usually extremely inexpensive, but engines alone can cost thousands of dollars — thus greatly increasing the cost of a vessel.
Finally, getting a boat with diesel engines generally helps businesses reduce their fuel costs. How much a business can save on fuel by selecting diesel engines will depend on how far from a marina the boat will be taken.
Competitive Marine Insurance Rates For Occasional Charters
Charter boats have special insurance requirements. Marine Underwriters Agency offers competitive rates for occasional charter coverage. Whether it be pollution coverage, hull policies, or machinery there are a lot of elements in charter boat insurance. You might have divers and crew that need to be covered, or even personal watercraft as additional needs on your charter.
When you submit a quote, one of our experienced underwriters will compare quotes from several top rated insurance companies to help keep you protected at the most competitive price. Contact us today to get a quote.
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Yacht Charter Price The All
A crewed yacht rental price can be charter fee plus expenses or charter fee, all inclusive. Indeed, certain types of charters in the Caribbean offer an all-inclusive rate, which basically gives clients a fixed price charter with all expenses established prior to departure.What is an ALL-INCLUSIVE yacht charter ? In this case the charter includes the rental of the boat itself with her insurance, equipment, water toys and crew as well as food, waters and soft drinks within reasonable consumption snacks, and fuel for engine and tender for cruising up to 4 hours/day.
What are the extra costs in an all inclusive yacht charter rate ? On top of your charter fee, you may have small expenses to enhance your time onboard your boat such as taxi transfers, cruising and local taxes for entering national parks for example, premium food and beverages, licence and fishing permit, agency and ship agent if any.
Average Cost Of Boat Insurance
Current estimates have reckoned the national average is around $300 to $500 per yearly premium. In some cases, the annual percentage could increase up to $1,000. While anyone can take a good guess between these numbers, there is a precise way of determining the exact price to insure a boat.
According to boat insurance experts, a good ballpark figure for the annual premium is 1.5% of the vessels market value. Take, for instance, an entrepreneur owns a 30-foot long schooner that is worth $39,000:
39,000 x .015 = 585
Judging from this calculation, the estimated cost of the annual boat insurance premium for a $39,000 schooner is $585. Any insurance premium that costs a thousand bucks must have owned a luxury vessel that is worth a fortune. While this calculation is practically infallible, it is also important to consider other factors that can marginally increase the premium.
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Types Of Boat Insurance Coverage
This will depend on the type of policy, but common coverage add-ons include:
- Specialized Coverage: Coverage for something specific on your boat like an expensive prop or navigation equipment.
- Salvage: Coverage that pays to remove your boat due to damage, from substantial to minor.
- Consequential Damage: Covers a loss that was the result wear and tear rather than an accident .
- Towing: Towing your boat across a body of water to safety can cost $400 per hour.
- Cruising Extension: You can get temporary, additional coverage if you plan on leaving the USA .
S After Getting Business Insurance
Depending on where you are in your business building process, here are some other actions you may need to take before getting started:
- If youre just starting, finding the best name for your business is a great first step. Check out TRUiCs Business Name Generator.
- After finding the perfect name, get a logo with our Logo Generator.
- Every business needs a website. Using a website builder like the GoDaddy Website Builder or Wix makes building a website simple and fast! Check out our review of the Best Website Builder.
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What To Expect From Average Boat Insurance Prices
If theres one topic that always excites people when I bring it up at cookouts or dinner parties, its boat insurance.
And how much fun is it when you and your friends break out the pen and paper and start calculating the cost of the boat insurance you need to keep your family reliably covered.
Fun stuff, right?
Okay, so maybe talking about boat insurance isnt all that exciting, but it is important. Seriously.
Its important from a simple legal standpoint and to protect your familys financial future.
As a boat owner, boat insurance is an investment you really shouldnt skip. Thats my answer to one of the most common questions people ask. That question is:
Hull And Machinery Vessel Policy Coverage
Hull and Machinery coverage is based on agreed value or actual value. Generally, agreed value is preferable because it is established at the time of the policy purchase, usually on the basis of a marine survey. Replacement value is even better, but usually too expensive, or simply unavailable.
Hull policies are either all risk or named hazards. All risk is more inclusive and is better for the vessel owner. With a named hazards policy, the owner can recover only for losses resulting from causes listed in the policy, and that list usually is pretty short. All risk policies cover losses from any cause except those listed, which normally includes only a few causes like acts of war and losses resulting from use in criminal activity.
Hull and Machinery covers not only the entire vessel in the case of collision, fire, or sinking, but also individual components like electronics, deck machinery, and engines. Even an engine with some years’ use may be covered if it suddenly breaks. Normal wear, and damage due to improper or inadequate maintenance, usually are not covered, nor is loss of revenue due to engine breakdown. Coverage of engines and other machinery varies from one company to another.
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How And When To Build A Team
Most captains are able to field phone calls and emails from customers if they operate one or two boats. Captains who have more than two boats, however, may want to hire a receptionist to help manage booking trips.
Some captains might also want to hire a first mate, who can help customers while fishing, and clean fish and wipe down the boat at the end of the day. This person can be hired when the demand requires another set of hands .
Read our fishing charter business hiring guide to learn about the different roles a fishing charter business typically fills, how much to budget for employee salaries, and how to build your team exactly how you want it.
Next Steps
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