Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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Working in marine commercial industries provides numerous opportunities for companies, but it comes with a great responsibility for commercial boat insurance.

In this field, the business depends on the optimal functioning of the vessel and there is also the increased liability of any passengers, merchandise and crew or other employees. Find the best insurance companies ton insure your boat for FREE with our ZIP code search!

Commercial Boat Insurance

Protecting a business against unexpected costs, legal expenses, or any compensation claims that can easily bankrupt a business and are difficult to pay out of pocket is a priority.

A new commercial boat insurance policy protects the vessel, property on board, or one’s employees from liability due to any unforeseen events.

There are numerous commercial boat insurance companies in operation. Many large general insurance companies insure commercial boats and so do many others that specialize in insurance for watercraft only.

All commercial boat insurance companies offer a large variety of policy options; one that fits the individual needs best can be selected by the potential customer.

Commercial boat insurance costs can differ vastly between the different insurers, so to get the best value it is crucial to shop around and discover the right policy at the best possible price. Find cheap boat insurance for FREE with our ZIP code search!

Types of Boat Insurance Coverage

Just like personal boat insurance, commercial boat insurance policies are usually available in multi-level protection systems. The below mentioned areas types of boat insurance that are routinely offered.

  • Property damage liability is good in cases where one is at fault for causing damage to someone else’s property.
  • Bodily injury liability pays for the injuries caused by the policy holder to a third party.
  • Physical damage takes care of the cost in cases where one’s own vessel or property is damaged.

Depending on the risk involved and how much one can afford to pay, a client may wish protection in just one or all of these areas. Sometimes owners of older vessels may not wish to purchase boat insurance for damage to their own vessels thinking they will pay out of pocket. With the vessel being old, the cost of premiums may not make getting insurance for it worthwhile.

Commercial Hull Coverage is a typical policy offered to commercial insurance boats and usually covers all of the following:

  • It takes care of the physical damage to the hull that may be caused due to marine perils or fire.
  • It also takes care of machinery damage or breakage to other equipment fitted on the vessel.
  • It includes collision and liability and even additional collision liability if needed.
  • The vessel owner may add additional coverage for strikes, riots or war risks.

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The protection and Indemnity Coverage policy includes:

  • Loss of life
  • Personal injury
  • Property damage for third party
  • Any other vessel related costs that may come up during the operation of the vessel
  • Defense against suits that may be brought on by third parties
  • Crew coverage that provides protection against death or personal injury

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Money Boat

Mode of Boat Insurance Claim Payment

Before agreeing to anything with an insurance provider, there are certain details that have to be considered and discussed with the policy issuer. For example, there are a number of different ways for payment to be paid in case of a claim. The mode chosen will have an impact on the premiums that one has to pay. One has to consider carefully what they can afford to pay in terms of premiums and deductibles and then decide on how claims should be settled. One should also consider what boat insurance covers.

  • The agreed value is an amount both the client and insurer are in agreement about when a policy is underwritten. In case of total loss of vessel this is the maximum amount that will be paid out by the insurer.
  • The actual cash value is the market value that the insurer will pay out in case the boat needs to be replaced.
  • While this option is not available to boats over two years old, replacement cost is when a boat is replaced by another one.

Different types of commercial boats have different specific insurance needs and insurance policies can be adjusted to meet those requirements. The choices available are almost unlimited, but obviously the greater the coverage, the more costly it will be.

Cost Saving Tips for Commercial Boat Insurance

It is possible to save money on commercial boat insurance policies. The first step towards that is to decide what coverage is desired specifically. All potential risks and the value of the vessel have to be taken into account. Also, one needs to figure out what category the vessel that needs to be insured fits into, as insurance companies calculate premiums based on size.

After collecting all the basic information, one needs to sign up online and start comparing boat insurance quotes from different companies. There are many sites that allow potential clients to obtain multiple quotes quickly and efficiently. Since such quotes do not require dialogue with agents there is no pressure or commitment. Additionally, there is no charge for using these services. Since online boat insurance is mechanized, the cost for the insurance company is reduced, which in turn means the customer, too, can save as much as 20%.

Money Saving Tips

Just make sure that the information given regarding the specifics of the insurance required is the same, so the quotes are truly compatible. Online comparisons give one a fairly good idea of the different types of coverage options, policies and their prices – all without having to ask pushy agents too many inquisitive and detailed questions.

Additional saving methods include asking for discounts for safety equipment and methods employed on the vessel to be insured. Many commercial insurance companies provide discounts for safety. Also, having members of the crew or the captain complete water safety training can earn discounts. Grouping policies together and paying premiums annually instead of monthly or quarterly will also get discounts with some insurers. If one owns more than one vessel, putting them all on one insurance policy can earn some discounts with some insurers while reducing paperwork.

Commercial boat insurance requires more than just price or coverage. When dealing with business issues, it is important to have the partnership of an insurance company that understands the workings of commercial boats and provides guidance when needed. Don’t wait any longer! Enter your ZIP code and find the best boat insurance TODAY!