As a boat dealer you have many areas that can generate losses. The area that creates the greatest loss possibility is your liability to the public. Customers can get hurt around your property, getting in and out of boats, walking on docks, taking demo rides or sea trials. After the boat is delivered, your liability continues until the expiration of the state of repose. This is called product liability. Commercial liability insurance is the foundation of your insurance program. This form of insurance can usually be obtained as a combination policy,which Commercial Liability Insurance, Product Liability, and Protection and Indemnity (an insurance term used to describe a specialized form of insurance for maritime exposures).
Since your product can result in severe injuries and even multiple deaths, very high limits of insurance are usually recommended. A Bumbershoot is the recommended type of coverage to satisfy the need for high limits. A traditional Umbrella or excess limits liability policy will not do as good of a job as the Bumbershoot as it specifically addresses maritime exposures. Look out for the inferior forms when shopping for this type of insurance.
If you have employees, you will need workers compensation insurance to cover your obligation to protect employees when injured on the job. You may also need Jones Act and USL&H coverage, which are Federal Laws.
Anderson Insurance Agency has been insuring boat dealers, marine mechanics and marinas for almost 40 years. We represent some of the most respected insurance companies in the marine insurance field. Click here to request a quote or click here to contact us.
Your owned inventory of boats, motors and marine supplies id best insured by a Boat dealer’s property form. Since values can fluctuate greatly, the insurance industry has developed a reporting form that allows you to report your values monthly, thereby only paying premium for your exact values. The Boat dealer’s property form is very broad and covers property in transit, at temporary locations and while on the water.
If you take in boats on consignment or trade, you will need to endorse your insurance program to include physical damage coverage and liability insurance for this property also. Coverage is usually offered on an actual cash value (depreciated) basis only. Many policies require a written agreement between the vessel owner and boat dealer as a prerequisite to affording insurance.
If the boat dealership also operates a marina, they will need Marina Insurance. Please refer to our webpage on that industry for a full explanation of that coverage.
Vessels, barges or other watercraft that are owned by the boat dealer but are not inventory, must be insured separately for liability and hull as coverage is not automatically provided on any other policy.
The boat dealership will probably require building and content coverage in addition to their inventory coverage. A commercial property policy is available to cover these needs you may also include business interruption insurance to this policy. Coverage is available to cover the docks, bulkheads, piers and pilings from almost any cause of loss (except rot, wood boring insects and worms).
Boat dealers often have heavy equipment such as travel lifts, fork lifts, backhoes, or cranes. This equipment is very valuable and is best insured by an inland marine policy.
Boat Dealerships usually involve handling large sums of money and valuable property. An employee dishonesty policy is needed to cover losses from employees stealing money, inventory, or forging checks or other documents.
If you own, borrow or lease vehicles or trailers you will also need commercial automobile insurance.
If you are located in any area that has a risk of flooding, you will need a separate flood insurance policy for the building and contents. The boat dealer’s form usually includes flood insurance for the boats, motors, hardware and trailers that you own as inventory.
Some insurance companies offer a very specialized form of insurance called “trick and device” insurance. This covers the loss you suffer when someone tricks you by trading in a vessel that they don’t have clear title to. It could be compared to title insurance for real property. It is not routinely written..
Employers should consider purchasing Employment Practices Liability Insurance to cover them for suits from employees alleging wrongful termination, sexual harassment, failure to hire, failure to promote, non-compliance with the Americans with Disabilities Act, and other similar employment actions. This policy will pay the cost of defending an alleged wrongful act. That benefit in itself, makes this a very valuable insurance policy.
If you offer any benefit plans to your employees you should consider purchasing Employee Benefits Liability Insurance.
You may have an exposure to pollution. This exposure can only be assessed after a careful review of your operations. In many cases, coverage will not be available for this risk. The only option may be to implement a program to minimize the risk as you cannot completely avoid the risk and run a business. Liability coverage is readily available for underground and above ground storage tanks. Site pollution insurance may be available depending on your operations and exposures.
Anderson Insurance Agency has been insuring boat dealers, marine mechanics and marinas since 1967. We represent most of the well-respected insurance companies in the marine insurance field. Click here to request a quote or click here to contact us.