Boat repair is rewarding work. You get to pick and choose the clients you work with, the locations where you work from, and control the workloads on your plate. Besides, you get to restore boats to optimum performance.
Unfortunately, just like a boat detailing and boat rental business, a boat repair business can be pretty dangerous. Boat mechanics are at high risk, including falls, lower back trauma, burns, and fires. Further, unforeseen obstacles might crop up, including damage to the vessel, all of which your business will be required to pay for.
That's where boat repair insurance comes in.
Marine repair insurance provides your boat repair business with somewhat of a cushion enabling you to move past any unprecedented events. In the event that there's damage to the boat you are repairing or property rented to you, marine repair business insurance should sufficiently cover the resulting costs.
Suppose harm was to come to your employees. Your marine mechanic insurance should cover medical costs and provide compensation for lost wages. Overall, while it might not be mandated by law to have insurance for a boat repair business, having one means you stay afloat even when unexpected events occur.
Ship repairers liability insurance is a primary and excess liability insurance solution designed to protect your business from the costs of legal claims brought forth against your business. The coverage indemnifies against liability for damage to third-party property, bodily injury, and legal expenses.
The ship repairs legal liability policy covers:
Complaints on completed operations performed on the vessel
Bodily injuries caused during ship repairs
Named insures for up to 90 days
Vendors working with you during the repair
Damage to the vessel and property rented to you
Granted, your business is not legally required to have this legal liability coverage. Still, conducting your boat repair business without it exposes your business to mounting legal fees that risk business discontinuation.
While the legal liability policy is quite comprehensive, it doesn't cover all exposures of your boat repair business. You are going to require additional coverage.
Commercial General Liability (CGL) coverage protects your boat cleaning business when you end up being sued for damage to a third party's property or bodily injury caused by one of your employee's actions. Suppose your boat repair business is named in a suit where one of your employees causes a fire at a marina, destroying several boats. Even further, consider a situation where, by accident, one of your equipment causes another bodily harm or even death. In that case, the CGL coverage pays the legal fees to defend you against the claim and is designed to go further and pay any settlement or claims.
This insurance policy provides more protection for your boat repair business through its optional policies:
Advertising injury coverage - This optional add-on to general liability insurance sees to it that you can cover administrative costs, attorney fees, settlements, and other legal expenses if your boat repair business is sued for slander, libel, copyright infringement, and other advertising or reputational harm
Rented premises liability coverage - Rented premises liability coverage will cover reimbursements to the property owner if a rented commercial space is destroyed or damaged by fire
Products and completed operations coverage - Products and completed operations coverage will cover expenses if a boat service you completed for a client caused personal injuries or property damage
Public liability insurance, just like general liability insurance, covers personal injuries and property damage. However, you can’t add advertising injury coverage, rented premises liability coverage, and products and completed operations coverage to its terms. But note that public liability insurance is cheaper than general liability insurance. Opt to get this one if you only want basic protection against third-party claims for your boat repair business.
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Running a boat repair business means that you invest money for an owned, rented, or leased commercial building where employees are trained, boats are admitted, and equipment are kept. Insure your boat repair business’s building with commercial property insurance. With this insurance, you can cover the following perils:
Building damage - Your boat repair building’s structures - roofing, flooring, signage, siding, etc - will get damaged by theft, vandalism, fire, extreme weather, and other covered perils. In such a situation, commercial property insurance will provide the money you can use to get damaged structures fixed
Building destruction - Fire and extreme weather will destroy your boat repair building. Commercial property insurance will see to it that your business won’t meets its end by providing the money you can use to cover reconstruction costs
Commercial property insurance comes with additional coverages for your boat repair business. These additional coverages are:
Stocks and contents coverage - Stocks and contents coverage will recoup losses if furniture, lighting, and other items not considered as business tools and equipment become damaged or lost due to fire, theft, vandalism, and other covered perils. Replacements parts you’re selling to customers are also covered
Business equipment and tools coverage - Business equipment and tools coverage will cover losses if your boat repair kit and diagnostics machine become lost or damaged due to fire, theft, vandalism, and other covered perils
Note that commercial property insurance excludes floods, mudslides, and earthquakes. To get coverage, you need to purchase or endorse earthquake insurance, flood insurance, and mudslide insurance.
Some boats will require hefty repairs and need to stay in your boat repair shop for days, weeks, or months. By principle, should such boats get damaged under your custody, the owner can hold you liable and ask for reimbursements. To protect yourself against this peril get garage keepers liability insurance which car wash and auto detailing businesses also get.
A lot of perils are present in a boat repair shop - explosions, getting hit by something, fire breakouts, etc. Due to these, employees will sustain diseases, cuts, burns, and blunt force trauma. This is why you need workers' compensation insurance to operate your boat repair business legally. If employees or an employee sustains a work-related injury or disease, workers' compensation insurance will kick in to cover the following:
Medical treatment/procedure - Workers' compensation insurance will cover surgeries, therapies, and other related medical procedures if your employee sustains a work-related injury or disease and demands your business to provide coverage
Hospitalization - If your employee needs to stay at the hospital for a while to continue healing from a work-related injury or illness, workers' compensation insurance will cover hospital bills
Medication - Workers' compensation insurance will provide the money your employee can use to buy medicines. Coverage applies no matter how costly the medicines might be
Rehabilitation - Some injuries or diseases will need rehabilitative care so that your employee can fully recover. Workers' compensation insurance also caters to this. It will pay therapist fees, rehabilitation equipment, and other associated costs on your business’s behalf
Lost income compensation - Workers' compensation insurance will cover your employee’s lost wages if he or she can’t go to work due to a work-related injury or disease. Compensation for lost income is a weekly allowance equal to two-thirds or 67% of the average weekly wage
Death benefits - When your boat repair business’s employee dies from a work-related injury or disease, workers' compensation insurance provides coverage for funeral expenses and financial aid to dependents
Does your boat repair business use a vehicle to tow boats, get supplies, or fetch employees? If this is the case, get commercial auto insurance. Usually included in tailored mobile marine mechanic insurance, this provides the following coverages for your business:
Auto liability coverage - When a boat repair business’s vehicle causes an accident, auto liability coverage in commercial auto insurance can help. It will cover the medical expenses of injured third parties. Reimbursements for properties damaged or destroyed will be provided too. If aggrieved third parties decide to sue, auto liability coverage will also help cover attorney fees, administrative costs, settlements, and other legal expenses
Physical damage coverage - Physical damage coverage will cover expenses if your boat repair business’s vehicle becomes damaged. This comes in two forms - collision and comprehensive. Collision physical damage coverage will kick in if your commercial vehicle sustains damage after colliding with an object or another vehicle. On the other hand, comprehensive physical damage coverage will apply if your commercial vehicle is damaged by fire, theft, vandalism, and other covered perils
Note that auto liability coverage will not help if your commercial vehicle caused an accident due to involvement in criminal activity. Also, physical damage coverage doesn’t cover the replacement or repair of aftermarket parts. Damage due to rollovers is also excluded.
You might need to stop business operations momentarily. Protect yourself against this peril through business interruption insurance. During the time business operations are at a halt and income isn’t generated, business interruption insurance provides the money you can use to cover employee wages, taxes, mortgages, loans, and other operational costs. Coverage lasts for 30 days but you can extend to 360 days through an endorsement.
There are insurance carriers that will provide a limited pollution coverage endorsement. This policy covers your pollution exposure. The first common issue that the policy will address is clean-up costs. These will be the most costly and will encompass all elements of pollution claims and subsequent remediation expenses.
Marine equipment and tools coverage provide protection for the equipment and tools you use to dispense your service. If you maintain an inventory of parts, the marine equipment and tools policy should sufficiently cover these in case of theft or damage. Before approaching your insurer of choice, it is vital that you get a professional to provide the exact value of the different equipment and tools. Most often, if you were to go at it on your own, you would likely under quote.
Suppose you are a mobile boat repair business. In that case, the marine equipment and tools coverage might not comprehensively cover all your business needs. To ensure that you are adequately protected, consider purchasing a business equipment floater policy that should provide coverage for equipment and parts while away from your physical location.
Boat repair is a high liability business. As such, your insurance premiums are likely going to be relatively high. On average, you will pay $200 per year or $16.66 per month. Insurers will often calculate the cost of your insurance at around 1-5% of your boat repair business. For instance, if your business is valued at $100,000, you might be required to take out a policy of $2,500. This should cover your business property, any equipment in transit, and the boats you will be working on. What's more, you should get some compensation for business interruption that offset any negative impact on your gross profit and logged-in working hours.
To get more idea about the pricing, here's a table showing the best boat repair insurance companies and their pricing:
|Cost per Month||Cost per Year||Best for|
|Great American||$2.08 - $14.92||$25 - $179||Legal liability coverage|
|Thimble||$5||$60||Mobility boat repair businesses|
|CoverWallet||$41.25||$495.00||Boat repair insurance quotes comparison online|
|The Hartford||$75||$900||Broad-spectrum coverage|
|Markel||$75 - $235||$900 - $2,820||Professional indemnity insurance for boat repair mechanics|
|AXA XL||Contact AXA XL for accurate pricing||Contact AXA XL for accurate pricing||International boat repair businesses|
To lower your marine mechanic insurance cost, consider looking for discounts, including:
Bundling multiple policies such as boat repair and auto insurance
Ensuring that you have a good claims history
Completing boat and water safety checks before any repair work
Working on boats less than three years old
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Suppose you are in the market for a boat repair business insurer. In that case, consider the following as these are the best marine mechanic insurance companies in the market today. Read to know their pros, cons, and average monthly pricing for a $1 million general liability coverage.
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Online policy management
Not an insurance company but an insurance broker
CoverWallet is an insurance broker that’s a subsidiary of AON. While it doesn’t have tailored insurance for boat repair business, this company has an online quotes comparison platform you can use to find companies providing boat repair insurance coverage.
Best for: Boat repair insurance quotes comparison online
Average cost: $41.25 per month
Our rating: 10/10
If you were to cancel the policy, you are entitled to a full premium refund
You'll be issued with prompt communication in the event of premium adjustments
Full payments in the event of total loss or constructive total loss
In case of partial loss, Markel pays for damage on a replacement cost basis
Unlimited annual benefits
Limited options for coverage limits
Markel's specialty product for boats and boat repair business includes watercraft liability, pollution liability, and general liability policies. With 35+ years in the boat and marine insurance landscape, this insurer, founded in 1980, offers its services in all 50 states and has international operations in Dublin, London, and Bermuda. Consider also getting the professional indemnity cover to protect your professional reputation in the event that the customer is aggrieved. You will pay $75 to $235 on average, subject to the coverage limit and the coverage options you decide to go with.
Best for: Professional indemnity insurance for boat repair mechanics
Average cost: $75 - $235 per month
Our rating: 9/10
You can cancel a policy anytime
Short and long-term policies are available
You can extend, cancel or modify policies via your phone
Customer support is only available online
Launched in 2016 as a drone insurance company, Thimble has now extended its services to include general liability for boat repair businesses. The A-rated insurance offers inland marine coverage that should cover the cost of replacing or repairing your boat repair equipment. You have the option of bundling this together with general liability insurance to help protect your boat repair business against claims of third-party bodily injury and property damage. You can get a free quote immediately and have it approved online. While the cheapest policy starts at $5, this will not offer you comprehensive protection. Consider bundling together several policies that way you are assured of all-rounded coverage. This will, on average, set you back $30 per month billed annually.
Best for: Mobility boat repair businesses
Average cost: $5 per month
Our rating: 8/10
Insurance policies can be tailored to your boat repair business
Can be purchased alone or as part of the BOP coverage
Available in all 50 states and Canada
You can only purchase the policy via a phone call
Limited online capacity
Great American Insurance Group is a longstanding insurance company that's been in business for over 150 years. It currently holds an A+ financial stability rating from AM Best. The provider has a dedicated marine product that's been on offer for nearly 20 years in all 50 states in the United States and Canada. Each of the different boat repair policies covers a long list of perils. The most suitable cover is Great American Insurance Group's Bailee policy which should cover most of the risks that your boat repair business will be exposed to. This policy's cost will vary between $25 and $179 per year depending on the covers you include as part of your boat repair policy.
Best for: Legal liability coverage
Average cost: $2.08 - $14.92 per month
Our rating: 8/10
24/7 customer service
Comprehensive policy terms
Wide range of inland marine policies
You can only purchase the policy through an agent
Quotes not available online
The Hartford doesn't allow separate deductible amounts for wind-related losses
The Hartford Financial Services Group, Inc. was founded in 1810 in Harford, Connecticut. For your boat repair business, you have the option of Advantage and Advantage Plus plans with room for further add-ons. With its A++ financial strength, you are assured of having all your claims and compensations settled. What makes The Hartford's boat repair business insurance offering stand out is the range of coverage options you have. You are encouraged to get in touch with their agents. That way, you can customize your policy to best fit your boat repair business needs. This customized policy will likely cost you $75 on average with the insurer being similarly flexible with the cost of the Advantage and Advantage Plus plans.
Best for: Broad-spectrum coverage
Average cost: $75 per month
Our rating: 8/10
Top ranking for innovation as ranked on Advisen's Pacesetters index
Exceptional financial strength with AM Best A+, S&P AA- and Fitch AA- ratings
A global network of agents
Poor customer service
Short-term policies are not offered
Founded in 1986, AXA XL is an American subsidiary of global insurance and reinsurance company Axa. It provides global commercial insurance programs and serves over 200 countries and territories worldwide. It has emerged to be a one-stop-shop for global marine solutions. Note that AXA XL has a range of standard to tailored tiers all of which attract different prices. This insurer doesn't provide pricing details on their website but instead requests that you get in touch for a custom quote.
Best for: International boat repair businesses
Average cost: Contact AXA XL for accurate pricing as it doesn’t state an average rate for its boat repair business insurance products
Our rating: 6/10
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!
It really can't get any better than this... wow