The Best Insurance for Boat Repair Businesses

Many marinas will ask you to carry General Liability insurance, but is that really the best possible coverage for your boat repair business? 

Commercial General Liability Coverage is the coverage that most businesses use, but it’s not the best for those in the boat repair industry. Marine General Liability Insurance is the best coverage for businesses working on the water. 

There are two exclusions on a general liability policy that can be problematic:

1. Watercraft Liability

General Liability policies don’t provide coverage for driving a boat or an automobile. Simply put-  if it moves, there’s no coverage for it on a general liability policy. 

Marine General Liability Coverage provides a level of coverage for while you’re test driving a boat after a repair. If you cause some kind of damage to a third party (such as damaging another boat or someone getting hurt), Marine General Liability Coverage will cover the damages. These motion-based scenarios are absolutely excluded from general commercial policies. 

2. Coverage for Your Work

General insurance policies aren’t a warranty for your work; they offer protection against bodily injury or property damage that’s caused by your work. Your actual work is not covered by a commercial policy. 

For example, if you were cleaning a boat, used the wrong chemicals, and damaged it, a general policy would not provide coverage for the damage to the boat you were working on. A general liability policy will only consider providing coverage if your work affects somebody else’s boat. 

Marine General Liability Coverage also has the same exclusion, but you have the option to add Ship Repairers Legal Liability to your policy. 

Ship Repairers Legal Liability

Ship Repairers Legal Liability will provide you with protection if you damage the vessel itself. To continue using the example from above, if you were test driving a boat and crashed, Ship Repairers Legal Liability offers coverage for the boat that you’re driving. 

Marine General Liability Coverage offers protection for people and property around you. Ship Repairers Legal Liability offers protection for the vessel that you are driving. 

Protecting Your Business

Keep in mind that not all insurance is created equal. The insurance policies listed above are not standard forms of insurance. They are written specifically by the insurance company offering the coverage.

Talk with your trusted advisor to ensure that your marine business is protected. If you’re looking for a new advisor or a second opinion, contact us and we’d be happy to answer your insurance questions.