Boating charters are great ways for many people to entertain or just enjoy the water. A boat charter rents vessels and services to clients for various reasons.
However, if you own a charter business, you have to make sure that you properly insure the boat. Often, your intended use of the boat plays a role in determining the right policy. Additionally, the location in which you plan to use the boat may also affect your coverage.
When getting boat insurance, talk to your agent about how to get the right location coverage.
Location and Commercial Boat Insurance
Location plays a role in many insurance factors. For example, insurers often use the claims ratio and the amount of theft and traffic in a local area to help them determine car insurance rates. Your boat’s location may also affect rates. The body of water on which you travel might affect your insurance rates.
Your commercial insurance agent will likely ask you a lot of questions about how you will use a charter. Doing so will help them better determine your coverage levels and specifications.
Traveling On Oceans vs. Inland Waterways
There are lots of different ways to enjoy the water. Whenever you accept a charter, make sure you have coverage for your boat’s service location.
- Most insurance policies ensure that you have coverage for local waterways, at minimum. However, if you plan to take your boat out of the location listed on your policy, talk to your agent. He or she may have to adjust your coverage.
- Almost all insurance policies cover bodies of water within the United States. However, if you operate a charter in Mexican, Canadian or other foreign waters, your coverage might lapse. Make sure you can operate the boat in foreign waters.
- If your charter will enter international waters, make sure you have coverage. International waters sometimes do not have governance under U.S. insurance rules. International waters start about 12 nautical miles off the coast's mean low water mark.
- Sometimes, insurance policies limit boaters to only travel on certain types of waterways. Some boats may only have coverage when they travel on lakes or rivers. Other charters might only be able to operate on ocean waterways. Essentially, only use you boat for its intended use.
Even on domestic waterways, your coverage could potentially lapse. The best way to keep your charter in an active policy zone is to know if your policy contains any territorial restrictions. Making sure you keep your boat within its standard coverage area.
We can help you get Dallas commercial boat insurance that covers you in your location. Talk to one of our agents for a fast, free quote. Call us at 800.342.4444 for more information.