Motor Boat Insurance

Boat Insurance

Charter boat insurance covers boats for hire. According to maritime law the operator of a charter boat incurs liability for what is deemed to be negligence on his or her part in the event of risks. Such risks may be to crew members, passengers or personal effects. Depending on the nature of the operations the insurance policy can also include shore cover. This may be important if the operator runs an enterprise on the shore since normal insurance cover is for losses incurred on the boat.

A first step in obtaining the charter boat insurance is to assess the risk involved in the operations of the boat. This is because charter boat insurance policies are tailor made to suit the needs of the operator. If for instance the charter boat has crew members, the insurance cover should include them. Losses of personal goods by passengers can lead to lawsuits and cover should extend to losses in personal items. Limits of liability for the policies for specific sections covered by the policy also need to be determined. Due to the complications presented by the nature of your business it may be beneficial to discuss with other people in a similar line of business so as to get tips and advice before venturing to find a suitable policy. Information may be obtained easily by joining charter boat operators’ guilds. Being a member of such guilds may entitle you to discount offers from partner insurance firms.

In the event of any loss to the boat or auxiliary equipment you will want to minimise losses in revenue by replacing your boat and getting back into business. The policy value can be based on a value which is agreed upon or on an actual value taking into account any depreciation of the boat over time. It is favourable therefore, to work with a value that is agreed upon so that the compensation allows you to get back into business with minimal losses. For instance if your boat is damaged in an accident new parts based on the value agreed can be used to replace the damaged parts.

In the course of operations boats that are not insured can damage your boat. It is important to ensure that the boat insurance policy covers such risks. Eventualities such as having a boat breakdown at sea could lead to lawsuits from users for the inconveniences caused and all this should be taken into consideration. Insurance cover therefore has to be comprehensive so that losses do not result in bankruptcy.