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Author: Mansi Gupta
Maritime law broadly defines the responsibility
of charterboat operator as being responsible
for all damages resulting from negligence.
This all-encompassing definition leaves the
operator exposed to the possibility of costly
and endless court cases.
This why the value of selecting a charterboat
insurance policy which protects your legal
rights, property and that ensures damages to
your boat are reimbursed, can not be underestimated.
How can you identify which components should
be in your policy? First, identify all your
business activities and the risks involved in
operating your charterboat business. This information
will help you decide the types of components,
the range, and amount of coverage needed.
Hull and Machinery Clause
This refers to the coverage of the vessel,
and all it's parts. It's
main purpose is to quickly get your business
and boat operational after accidents. If you
afford to pick a policy, which covers the following
damages your charterboat, can sustain:
Combustion, sinking or collision of your boat.
Deck machinery, boat engines, and electronics.
Coverage for an engine that
breaks.
However, the following are not included in
the hull and machinery component: Damage to
your engine due to inappropriate use or neglect,
wear due to every day use of the boat or reimbursements
because your engine broke down.
Protection and Indemnity (P&I) Clauses
These clauses enable you to pay passengers
and other people who could have suffered personal
injuries or property damage caused by your vessel.
The basic clauses you should consider are the
following:
Coverage limit
How much is your business worth? A wise agent
will tell you, the best coverage limit is one
that you can get. It does make sense since marine
P&I policy covers you on a per incident
basis, not for each person.
Shore excursion
If your insurance policy doesn't
have this clause, your passengers are not insured
once they get off your boat.
Crew coverage
You must pay coverage for each crewmember,
or you will be liable for the uninsured crewmembers'
injuries in the performance of their duties.
Passenger medical payments
A good clause to have, for you're
protected from irate passengers who even if
they have suffered minor injuries, will file
for big damages.
Personal effects
The loss of clothes, fishing equipment or cameras
might seem a minor inconvenience, but not to
the passenger who suffered the loss. This clause
ensures that you are properly covered and your
passenger's leave happy.
However, talk to your agent so that you know
what items are covered in the personal effects
clause and if these are appropriate to include.
Remember, the right charterboat insurance
policy for you is one that insures both your
boat and charterboat business.
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