How to Insure a Charter Boat Company
Insuring your charter boat company is a necessary step to take before you start doing business. The time you spend on the telephone with potential insurance agents is invaluable. Find an agent you are comfortable with, ask questions and shop around. As in any other industry, insurance agents are in business to serve their customers. Your agent should be able to answer any of your questions, and explain coverage options.
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Instructions
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Insure Your Charter Boat Company
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Incorporate your business. Before you can insure your charter boat company, it should be incorporated. Incorporation helps limit your personal liability by separating your business assets from your personal assets. A good accountant can assist you for approximately $1,000.
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Make a list of all your business assets. Include office and boating equipment, boat hull, motor and a trailer if you have one. Your list should include the year, manufacturer, model and serial numbers of each item, as well as the item's value. Your insurance agent will use this information so that your policy accurately reflects the value of your assets.
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Find out what your marina requires regarding minimum liability. Marinas typically expect charter boat operators to carry at least one million dollars liability, and the name of the marina should be listed on the policy as additionally insured. This protects them from lawsuits resulting from accidents that occur at the dock.
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Prepare a summary of your boating experience, including dates of any boating or safety courses completed. If you have a United States Coast Guard license, write down the issue date and license number.
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Call an insurance agent and go over your insurance needs. While many insurance companies insure boats, relatively few deal in commercial marine insurance. Make a few calls and pay attention to how you are treated. If the agent treats you poorly when you are buying insurance, think how they will treat you when you file a claim.
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Tips & Warnings
Use an A-rated insurance company. Nothing is worse than filing a claim and finding out your insurance company is out of business.
Keep your marina owners in the loop, and provide them with a copy of your insurance policy.
Incorporation alone does not protect your personal assets from being seized in a personal injury settlement.
Before doing business, be sure that you and your marina are sufficiently insured.
