General Information About Commercial Boat / Yacht Insurance
Make certain your agent understands the risk associated with owning and operating boats. Watercrafts are unique risks, and if proper protection is not provided, you could be left exposed to huge liability, and the vessel could be left uninsured.
Buying Considerations:
Hull coverage: This is the coverage that protects the value of your vessel. Three basic types exist: Replacement cost, Agreed Value, and Actual Cash Value (ACV). If for example your 2002 Seacraft is totally destroyed under a replacement cost contract, the insurance company will buy you a used 2002 Seacraft in like condition, or give you enough money to go buy a 2002 Seacraft in like condition. Under an Agreed Value contract, the insurance company would just pay you the amount of the policy limit, and under an actual cash value policy, the insurance carrier will pay you the depreciated value of the boat. Each type of coverage should be examined to see which type of protection fits your needs.
Navigation Area: This is normally a warranty/guarantee on most boat policies. This means that if you travel outside a specific designated area, your coverage will be voided. This will affect the premium, and will help you pick the proper navigation area that fits your needs.
Lay-up period: How long your boat is "laid-up", and not used will affect the premium as well. This is a period that you will not be using your boat. It can be laid up on the land, or some companies will allow you to keep the boat in the water during the lay up period.
Removal of wreck: An important coverage some companies will exclude. If your boat sinks in a navigable waterway, you will be required to raise the boat and move it. These expenses can be significant, and you should be aware if you policy covers them or not.
Protection and Indemnity (P&I): This coverage is liability protection for yourself when someone gets injured, or their property gets damaged due to your negligence. Boats with bigger exposures should carry higher limits to protect the owner. For instance, if you will be carrying passengers for a fee, or have a tower on your boat, we will recommend higher P&I (liability limits).
Caution: Some policies will reduce the limits of P&I for property damage in a collision to the limit of your hull insurance. This means that even if you have purchased $1,000,000 P&I coverage, if you hit a $600,000 sportfish with your $12,000 Mako, you only have $12,000 of insurance coverage to compensate the owner of the sportfish for the damages you did to his boat during the collision. We can help you find coverage that does not contain this limitation.
Caution: Many policies carry warranties such as forbidding waterskiing or racing. We can help you make sure you get a policy that fits your specific needs.
These are just some of the items we will look for when we initially do a risk survey on your boat. We will assist you in selecting proper limits for items such as towing, fishing equipment, and hull limits. We can also assist you in determining the best navigation area, lay-up period, or even assist you with survey recommendations.
You need a professional who knows boats to protect you properly.
Annual Review
At J Byrne, we strongly recommend you review your insurance coverage at least once a year. Your driving habits or living situations may have changed. Or, maybe you’ve made a few major purchases throughout the year that should have extra coverage. Inflation or depreciation can affect the value of your properties and their contents. Call J Byrne now to review, renew or establish your customized insurance policy that fits your world. |
