Sailboat dealers are exposed to a variety of unique risks that must be covered with comprehensive sailboat dealer 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.
Why Do You Need Sailboat Dealer Insurance?
Any business that sells new or used sailboats or regularly rents, trades, or repairs sailboats or other watercraft can be considered a boat dealer. Here are just some of the property and liability risks that sailboat 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
Like most businesses, sailboat dealers usually have buildings and contents that need to be protected with insurance. In addition, you face property risks associated with your boat inventory and your interaction with the general public.
Property damage to your inventory can occur in any number of ways, from windstorms and hail to vandalism and customers taking boats out on the water.
Sailboat 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 sailboats 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 sailboats, you can be held responsible.
- Faulty repairs: If you take customer-owned sailboats into your possession for repairs, maintenance, or storage, 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 customers’ sailboats in your possession. You could be held liable for damage to other people’s property that is in your care.
- Product liability: A faulty sailboat or part in a sailboat that you sell can cause property damage or can injure someone. You could be held liable in these cases.
What Does Sailboat Dealer Insurance Cover?
Sailboat dealers seeking appropriate business insurance coverage should work with a knowledgeable insurance agent who specializes in their line of work. The right agent can find individual and packaged sailboat dealer insurance policies that will address the various forms of property and liability risks you face.
The following are some basic business insurance policies sailboat dealers generally need, in addition to specialty policies and endorsements tailored to sailboat dealers.
- Commercial general liability (CGL) insurance 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 provides protection for your business property, including building(s) and contents.
- Business interruption coverage 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.
What Other Insurance Policies Do Sailboat Dealers Need?
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 sailboat dealers who make an error in title-related paperwork.
- False pretenses coverage: Protects your business if you are unwittingly coerced to release a sailboat to someone under false pretenses.
- Employee dishonesty coverage: Covers costs associated with employee theft and crime.
- Truth in lending coverage: Protects sailboat dealers who fail to comply with the Truth in Lending provisions of the Consumer Credit Protection Act.
- Engine hours errors and omissions coverage: Protects sailboat dealers from legal claims specifically related to a boat’s engine.
- Worker's compensation insurance: Protects employees who are injured on the job.
- Product liability coverage: Covers losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of a sailboat.
- Commercial automobile coverage: Protects vehicles that your business owns as well as trailers that you use to transport sailboats.
- Marina insurance: Protects sailboat 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.
What Does Sailboat Dealer Insurance Cost?
Sailboat dealers need a customized mix of property and liability insurance to ensure that there are no gaps in coverage. The cost to cover your sailboat dealership with a comprehensive business insurance program will vary depending on:
- The size of your business
- Your location
- The number of employees you have
- The products and services you provide
- The value of your commercial property, including your building (if you own it) and all of its contents
- The value of your sailboat inventory
- The types of coverage and the coverage limits that you require
- The crime and weather risk in your city
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
Our agents simplify the search process for finding the right sailboat dealer insurance. They’ll walk you through the handpicked policy options and explain the details.
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 take into account the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost savings 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
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