Running a boat rental business is rewarding. You get to offer clients a chance to hire watercraft to enjoy their vacations while earning profits. However, it's essential to obtain boat rental insurance, whether you operate a small boat rental business or a larger one that doesn’t only offer boats but also jet skis.
Like any other business such as boat detailing, offering boats for hire has risks. Without commercial boat rental insurance, you can face myriad lawsuits and financial losses due to razed equipment, theft, and vandalism. You can also cover the cost of boat repair. The last thing you want is for your business to come to a sudden end – a reason why it makes sense to secure insurance for renting out your boat.
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:
Mini jet boats
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.
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:
Violation of good faith
Violation of fair dealing
Other acts considered errors and omissions
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.
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 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
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
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.
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?
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.
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.
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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
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:
| ||Cost per Month||Cost per Year||Best for|
|CoverWallet||$41||$492||Boat rental insurance online quotes comparison online|
|Geico||$44||$528||Private boat owners looking for boat rental insurance|
|State Farm||$55||$660||Boat renters looking for insurance with quality customer service|
|USAA||$58.63||$703.56||Boat rental businesses owned by ex-military personnel|
|Boatsetter||$60||$720||Renters using peer-to-peer rental program|
|GetMyBoat||$65||$780||P2P boat renters looking for mobile-first insurance management|
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.
Manage your boat rental insurance with the MyCoverWallet app or CoverWallet website
Compare quotes online and get covered at the cheapest price
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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
Provides coverage for wide-ranging types of vessels
Multiple policies to cover many risks
Coverage available in all 50 states
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
Fishing equipment coverage
Best for : Private boat owners looking boat rental insurance
Average cost : $44 per month
Rating : 9/10
Policy includes wreckage removal and fuel spillage liability
You can choose not to have deductibles
Accident forgiveness benefits
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
Offers coverage for a wide range of water vessels
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
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
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
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
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
Offers insurance through an online app
Insurance policies available globally
Partners with Falvey Yacht Insurance, a seasoned marine insurance carrier
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
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Are you looking for boat rental insurance quotes? Click the "Get Quotes " button at the top of the page to look at the offers and pricing of different carriers.
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!