Owners and operators of powerboat dealerships are exposed to a variety of unique risks that must be covered with comprehensive business insurance, or commercial marine insurance. You need coverage for your inventory as well as liability protection for the numerous ways in which you or your employees may cause bodily injury or property damage in the course of doing business.
You need to work with an experienced powerboat dealer insurance agent who can help you find the right mix of insurance products that cover your specific needs.
Why Do You Need Powerboat Dealer Insurance?
Any business that sells new or used powerboats, or regularly rents, trades, or repairs watercraft, can be considered a boat dealer. Here are just some of the property and liability risks that powerboat dealers face.
- Inventory damage while on a lot or in a marina
- Boat damage during seaworthiness tests
- Bodily injury or property damage during seaworthiness tests
- Damage to boats during transport on trailers
- Building and contents damage due to catastrophic events
- Business interruption
- Truth in lending and title claims
Property and Liability Concerns for Powerboat Dealers
Like most businesses, powerboat dealers are likely to have buildings and contents that need to be protected with insurance. In addition, you face property risks associated with your boat inventory and your interactions with the general public.
Inventory damage can occur in any number of ways, from windstorms and hail to vandalism and customers taking boats out on the water.
Powerboat dealers also face a variety of unique liability risks associated with the following activities that take place at your business and with your product.
- Seaworthiness tests: Customers who take powerboats out on the water pose a great threat to themselves as well as other people and watercraft. If a customer causes property damage, injury, or death while operating one of your boats, you can be held responsible.
- Faulty repairs: If you take customer-owned powerboats into your possession in order to perform repairs or maintenance, you can be held liable for damage to those boats or for faulty repairs that cause injury or death.
- Catastrophic events: Fire, smoke, or other catastrophic events can damage customer powerboats in your possession. You could be held liable for damage to other people’s property that is in your care.
- Product liability: A faulty part in a boat that you sell can cause property damage or can injure someone. You could be held liable in these cases.
Powerboat Dealer Insurance Overview
Powerboat dealers seeking appropriate business insurance coverage must work with a knowledgeable agent who specializes in their line of work. The right agent can find individual and packaged powerboat dealer insurance policies that will address the various forms of property and liability risks you face.
The following are some basic business insurance policies powerboat dealers generally need, in addition to specialty policies and endorsements tailored to boat dealers.
- Commercial general liability (CGL) insurance: This provides broad coverage for bodily injury and property damage caused by you or your employees. CGL insurance also covers claims related to slander, libel, and advertising liability.
- Commercial property insurance: This provides protection for your business property, including buildings and their contents.
- Business interruption coverage: This provides coverage for lost income and expenses if you must temporarily cease operations after a catastrophic event. It pays employee salaries, rent, and other expenses while you are closed to make repairs.
You may also need the following types of coverage, and others, depending on your needs and the specifics of your business. Many of these policies can be purchased as endorsements to your basic liability or property policies, or they can be packaged into a comprehensive commercial marine policy.
- Title errors and omissions coverage: Provides protection for powerboat dealers who make an error in title-related paperwork.
- False pretenses coverage: Protects your business if you are unwittingly coerced into releasing a boat to someone under false pretenses.
- Employee dishonesty coverage: Covers costs associated with employee theft and crime.
- Truth in lending coverage: Protects powerboat dealers who fail to comply with the Truth in Lending provisions of the Consumer Credit Protection Act.
- Engine hours errors and omissions coverage: Protects powerboat dealers from legal claims specifically related to a boat’s engine.
- Coverage for customer powerboats in your care
- Workers' compensation insurance: Protects employees who are injured on the job.
- Product liability coverage: For losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of a powerboat.
- Commercial automobile coverage: Protects vehicles that your business owns, as well as trailers that you use to transport powerboats
- Marina insurance: Protects boat dealers that also operate as a marina for damage caused by boats owned or operated by the marina, and for damage to boats docked at the marina.
How Much Does Powerboat Dealer Insurance Cost?
Powerboat dealer insurance might cost several hundred to several thousand dollars per year for liability coverage. Your costs are likely to be higher or lower than average depending on the unique characteristics of your business, such as the location, the number of employees, the value of your commercial property (buildings, inventory, other contents), whether you own your building, and many more variables.
The amount of coverage you need and the deductibles you choose also impact your powerboat dealer insurance costs.
Find and Compare Quotes
An independent insurance agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Independent insurance agents simplify the search process for finding the right powerboat dealer insurance. They’ll walk you through some handpicked policy options and explain the details and options.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get—but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
©2021, Consumer Agent Portal, LLC. All rights reserved.