Boat Builder and Manufacturer Insurance
Learn about boat builder and manufacturer insurance coverage, cost, and companies.
Written by
Ann Herro has been writing about insurance and employee benefits for over 15 years. She covers topics ranging from car insurance to healthcare costs.
Reviewed by
Cara Carlone is a licensed P&C agent with 20 years of experience. She has her P&C license in RI and TX and holds CPCU, API, and AINS designations.
Boat builders and manufacturers vary greatly by size as well as the type of vessel produced. Boat manufacturers, however, are never typical manufacturing operations. Boat and yacht building is a highly technical and specialized craft that requires both an artistic eye and unfailing precision.
Whether you build boats for private or commercial use, wood boats, fiberglass boats, fishing boats, or luxury vessels, there is one thing all boat builders have in common: the need to protect your business from the risks it faces. For boat builders and manufacturers, that means protecting your business and your customers before, during, and after the production of every boat with business insurance.
A local independent insurance agent can help you find the best boat builder and manufacturer insurance in your area.
Best Boat Builder and Manufacturer Insurance Companies
Many insurance companies offer business insurance, including boat builder and manufacturer insurance, but not every insurance company operates in your state. Here are a few recommended business insurance companies that you may find in your area:
- Progressive: Progressive is based in Ohio but offers business insurance across all 50 states. You can look to Progressive for most of your business insurance needs.
- Travelers: Travelers offers highly rated personal and business insurance across the U.S.
- Foremost Insurance Company: Foremost was founded in 1952 and offers a wide range of coverage, including business insurance, in 50 states
- Nationwide: Nationwide provides business insurance and other popular types of insurance coverage. The company is headquartered in Columbus, OH, and is represented by independent insurance agents in 50 states.
- Liberty Mutual: Liberty Mutual is headquartered in Boston, MA, and has been offering business insurance since 1912. Today the company offers a flexible, multi-line range of coverages designed to meet the needs of any business, regardless of size or industry.
A local independent insurance agent can help you find the right insurance company for your boat builder and manufacturer insurance.
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Why Do You Need Boat Builder and Manufacturer Insurance?
The boat-building business is highly complex and very unique. In fact, you may produce more than just boats, including things like boat accessories and a variety of other marine products. For that reason, the risks you face can vary based on:
- The type of boats you build
- The materials you use
- The types of customers you have (leisure, commercial)
- The location where you operate and the specifics of your manufacturing facilities
- The number of employees you have
- The type of facility you operate, e.g., a marina
- The repair service you provide
Your boat builder insurance helps you protect against these and other risks. You must work with an insurance agent and insurance companies who know about your business and who regularly work with others in your industry.
A local independent insurance agent can help you find insurance companies that specialize in boat manufacturer insurance and that provide special packaged policies tailored to the needs of your industry.
What Does Boat Builder and Manufacturer Insurance Cover?
You will need numerous types of property and liability coverage to address all of the risks you face in your business. First, you'll need several types of property insurance to protect your building(s) and their contents:
- Commercial property coverage for your building(s) and their contents, including manufacturing facilities and any other property you need to protect from weather events, fire, smoke, theft, vandalism, and other disruptions
- Business interruption coverage, including coverage for utility breakdowns
- Coverage for heavy equipment, including machinery, docks, and piers
- Equipment breakdown coverage
- Coverage for boats under construction, from the beginning of construction through delivery
- Inland marine coverage for boats, machinery, and parts in transit
- Inventory coverage
- Special flood, wind, and hail coverage where applicable
- Employee theft and crime coverage
Next, you'll need liability insurance to protect you from negligence claims and lawsuits. You'll need some or all of the following, depending on your risk factors:
- Commercial general liability coverage for broad liability protection
- Product liability coverage, including completed products coverage
- Liability coverage for launching and sea trials
- Pollution liability coverage
- Liability coverage for negligent marina operations
- Coverage for non-owned boats on your premises (e.g., during repair work), sometimes referred to as marine bailee coverage
- Employment practices liability coverage
- Commercial vehicle insurance
- Directors and officers liability coverage
- Excess liability coverage, also referred to as a Bumbershoot policy
An independent insurance agent can ensure you get the coverage you need to protect your business.
Why Do Boat Builders and Manufacturers Need Workers' Compensation Insurance?
Boat manufacturing can be dangerous for employees. Every boat manufacturer needs workers’ compensation insurance to protect its employees from the costs of work-related injuries and illnesses.
In some cases, however, boat manufacturers may be subject to the Longshore and Harbor Workers’ Compensation Act. This is a federal workers’ compensation act that applies in very specific circumstances for certain types of maritime employees.
Like workers’ compensation insurance, it covers the costs of medical care for employees who are injured or disabled while working on the navigable waters of the United States or in adjoining areas used in loading, unloading, repairing, or building a vessel.
Whether or not a boat manufacturer’s employees would be covered by this Act (rather than standard workers’ compensation insurance offered in your state) relies upon two relatively complex “tests” based on the nature of the employee’s work and the location of the work.
There are also numerous specific exclusions, including the following:
- Shipbuilders who are employed to build recreational vessels smaller than 65 feet long
- People employed by a marina who are not engaged in the construction, replacement, or expansion of the marina
- Mechanics and repairmen for recreational vessels
You may have certain employees who are covered under the Act and others who are not.
Your independent insurance agent can add Longshore and Harbor Workers’ Compensation Act coverage to your workers’ compensation policy to ensure that you have the right coverage if it applies to any of your employees.
What Does Boat Builder and Manufacturer Insurance Cost?
The cost of insurance for boat builders can range widely from business to business. It depends on:
- The size of your boat manufacturing business
- The number of employees you have
- The types of tools and equipment you own and their value
- How many trucks and drivers you have
- Your compliance with safety programs and your history of worker injury claims
- The value of your commercial property (buildings, inventory, other contents),
- Whether or not you own your building(s)
Many other variables influence your cost of boat builder and manufacturer insurance. Ultimately, the types and amounts of coverage you need to cover your risks adequately will dictate the cost of your coverage. An independent insurance agent in your area can help you find boat manufacturer insurance that fits your budget.
Save on Business Insurance
Our independent agents shop around to find you the best coverage.
How Can an Independent Insurance Agent Help You Find Boat Builder and Manufacturer Insurance?
Boat manufacturing is a highly complex and technical business. You need the advice and counsel of an independent insurance agent with experience working in your industry.
Your independent agent can work with numerous highly rated insurance companies that specialize in finding insurance for boat builders and manufacturers.
Do not trust your business to one-size-fits-all coverage, or you may be vulnerable to devastating exposures. You need specialized marine insurance that is tailored to your needs and the help of an adviser who is in your corner for the long term.