Commercial Boat Insurance
Commercial boat insurance is required from the hundreds of ferries that shuttle from shore to shore to the cruise ships and fishing charters as well as the whale watching boats and any other vessels that are used to haul passengers for profit. The liability is immense and the range of possible scenarios on the water can almost boggle the imagination, yet for the right price an indemnity company will take on the risk of insuring the trip to that hot fishing spot or that secluded island paradise or just to another work day on the mainland. But is not just about hauling passengers, it's about the lobster boats and the clammers and the vessels just used for hauling stuff up and down the Mississippi and other major rivers as well as the tugboats that push the giants in and out of the ports of major cities. Maritime laws, usually state mandated, require that every commercial boat, watercraft or ship be covered with the type of insurance that will at least cover basic civil liability in the event of accidents. For this lens, a look at the smaller commercial boat insurance issues will be discussed.
Business related boats, as opposed to ships that sail the oceans, are covered by policies that are in two parts. Policies state that their intent is to get the owner back out in the water as soon as possible. These policies are always broken down into two distinct portions: hull and mechanical and then P&I or protection and indemnity. Hull and mechanical cover the coverage of structure of the boat and mechanical refers to the engine and its main related systems. P&I insurance is third part insurance to protect the owner from incidents that occur onboard his vessel(s). Any agent attempting to sell a commercial boat insurance policy that does not include both components of a marine policy does the owner a great disservice.
The hull portion of the commercial boat insurance coverage usually blankets all equipment mounted on the boat such as horn, lights, radios, safety equipment and can also cover trailers that might transfer the craft. The mechanical portion will cover catastrophic engine failure through broken shafts, pistons, etc., so long as it cannot be traced to mechanical neglect. Explosions, fires and other causes of engine failure would also be included on the coverage. Torrential oceans and seas and even grand lakes can be terrifying for the one is a small craft, but Jesus, the Great Shepherd will His children to another place when life becomes chaotic if they will allow Him: "He maketh me to lie down in green pastures; He leadeth me beside the still waters, He restoreth my soul..." (Psalm 23:2-3)
One of the characteristics of commercial boat insurance when it comes to the protection and indemnity portion of a marine policy is that coverage pays by the incident, not by the vessel being covered in a blanket policy. While there are mandated minimums for certain components of the P&I insurance portion of the commercial boat insurance coverage, owners are certainly encourages to buy higher amounts of liability insurance. Companies providing hull and mechanical and P&I coverage are able to deny high amounts of protection to those owners with vessels in less than pristine condition. And because incidents putting in jeopardy passenger and crew safety can amount to hundreds of thousands or even millions of dollars in judgments, the mantra across the board with marine insurance experts is to get as much policy coverage as a provider will allow. The many possible scenarios under which a boat's owner could find him being used are enough to make any sane operator pay almost anything within a profit margin to get the full amount.
One of the most recent possibilities of liability that has arisen was non-existent years ago, but due to the ever increasing focus on the environment, this is another worry for the operator. A boat sinking near a populated or wildlife sensitive area has the almost certain chance of discharging a large amount of fuel oil or gasoline into the water. Not only is this a pr problem for the operator of the boat, but if he has commercial boat insurance, it also is a very expensive cleanup bill for his insurance carrier. Without the extra coverage in the P&I portion of the policy this possibility becomes an economic headache for the boat operator; cleanup of this sort is not an hour's operation. If the vessel under consideration is of the passenger carrying type, the P&I considerations begin to mount. First, there are the many possibilities for onboard mishaps that demand a high liability protection, as well as medical indemnity considerations. If the boat is a charter and passengers are taken to another port for guided tours, etc., the operator must be covered for incidents occurring under his supervision, and if it is a "drop them off and see you later" deal, that is a whole other liability issue.
But the commercial boat insurance issues don't end there. Consider items lost overboard, and cameras that have been stolen, perhaps jewelry gone missing while on board. While many passengers may have homeowner's insurance to cover such possibilities, there will be a few that will complain to the highest decibel level that the boat operator is responsible, and so coverage for these issues is suggested. Here is another issue perhaps not considered. Most commercial watercraft owners are covered for a certain geographic area, but if a sudden storm or some other unexpected issue arises and it is forced off course for safety concerns, an incident occurring in those unapproved waters may negate any of the boat's coverage. Marine experts also advise the purchase breach of warranty coverage for these very kinds of possibilities. It's no wonder that fishing charter cost so much!
Business related boats, as opposed to ships that sail the oceans, are covered by policies that are in two parts. Policies state that their intent is to get the owner back out in the water as soon as possible. These policies are always broken down into two distinct portions: hull and mechanical and then P&I or protection and indemnity. Hull and mechanical cover the coverage of structure of the boat and mechanical refers to the engine and its main related systems. P&I insurance is third part insurance to protect the owner from incidents that occur onboard his vessel(s). Any agent attempting to sell a commercial boat insurance policy that does not include both components of a marine policy does the owner a great disservice.
The hull portion of the commercial boat insurance coverage usually blankets all equipment mounted on the boat such as horn, lights, radios, safety equipment and can also cover trailers that might transfer the craft. The mechanical portion will cover catastrophic engine failure through broken shafts, pistons, etc., so long as it cannot be traced to mechanical neglect. Explosions, fires and other causes of engine failure would also be included on the coverage. Torrential oceans and seas and even grand lakes can be terrifying for the one is a small craft, but Jesus, the Great Shepherd will His children to another place when life becomes chaotic if they will allow Him: "He maketh me to lie down in green pastures; He leadeth me beside the still waters, He restoreth my soul..." (Psalm 23:2-3)
One of the characteristics of commercial boat insurance when it comes to the protection and indemnity portion of a marine policy is that coverage pays by the incident, not by the vessel being covered in a blanket policy. While there are mandated minimums for certain components of the P&I insurance portion of the commercial boat insurance coverage, owners are certainly encourages to buy higher amounts of liability insurance. Companies providing hull and mechanical and P&I coverage are able to deny high amounts of protection to those owners with vessels in less than pristine condition. And because incidents putting in jeopardy passenger and crew safety can amount to hundreds of thousands or even millions of dollars in judgments, the mantra across the board with marine insurance experts is to get as much policy coverage as a provider will allow. The many possible scenarios under which a boat's owner could find him being used are enough to make any sane operator pay almost anything within a profit margin to get the full amount.
One of the most recent possibilities of liability that has arisen was non-existent years ago, but due to the ever increasing focus on the environment, this is another worry for the operator. A boat sinking near a populated or wildlife sensitive area has the almost certain chance of discharging a large amount of fuel oil or gasoline into the water. Not only is this a pr problem for the operator of the boat, but if he has commercial boat insurance, it also is a very expensive cleanup bill for his insurance carrier. Without the extra coverage in the P&I portion of the policy this possibility becomes an economic headache for the boat operator; cleanup of this sort is not an hour's operation. If the vessel under consideration is of the passenger carrying type, the P&I considerations begin to mount. First, there are the many possibilities for onboard mishaps that demand a high liability protection, as well as medical indemnity considerations. If the boat is a charter and passengers are taken to another port for guided tours, etc., the operator must be covered for incidents occurring under his supervision, and if it is a "drop them off and see you later" deal, that is a whole other liability issue.
But the commercial boat insurance issues don't end there. Consider items lost overboard, and cameras that have been stolen, perhaps jewelry gone missing while on board. While many passengers may have homeowner's insurance to cover such possibilities, there will be a few that will complain to the highest decibel level that the boat operator is responsible, and so coverage for these issues is suggested. Here is another issue perhaps not considered. Most commercial watercraft owners are covered for a certain geographic area, but if a sudden storm or some other unexpected issue arises and it is forced off course for safety concerns, an incident occurring in those unapproved waters may negate any of the boat's coverage. Marine experts also advise the purchase breach of warranty coverage for these very kinds of possibilities. It's no wonder that fishing charter cost so much!
Commercial Boat Insurance
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Reviewed by Anonymous
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