Boat Repair Shop Insurance
Learn about boat repair shop insurance coverage, costs, 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.
Owning a boat is a luxury, and when that luxury breaks down, owners want their boats back in the water as soon as possible. As a boat repair shop owner, your job is not only to fix your clients' boats but also to protect their expensive property while it's in your hands. With precious cargo in your possession, it's crucial that you have a comprehensive boat repair shop insurance package that protects you and your business should something go wrong.
Business insurance can help protect your boat repair shop from risks ranging from slip-and-fall claims to natural disasters that can put you out of business for several months. Finding boat repair shop insurance is easy with the help of an independent insurance agent who can shop around for the best coverage and cost for your needs.
Best Boat Repair Shop Insurance Companies
Many insurance companies offer business insurance, including boat repair shop 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 repair shop insurance.
Why Do I Need Boat Repair Shop Insurance?
Boats can be complicated vessels, and boat repair shops may conduct repairs on their own property or at a marina. Whether you work from a shop or travel to a marina, there are a variety of events that can occur.
In addition to the risks you and your employees face while repairing a boat, you're also responsible for a very expensive product while you work. Your customers trust you not only to fix their boat but also to keep it safe while in your care.
Boat repair shop insurance can protect your business from events like:
- An employee slips and falls while working on a boat and needs medical attention
- You replace a part of a customer's boat with a faulty part
- A fire burns down your shop, and you have boats inside
- A customer's boat is damaged while being transferred from your shop to the water
- Important materials are damaged while in transit to a job site
- An employee gets in a car accident while transporting products or going to and from a job site
- An employee is caught stealing materials or money from you
As you can see, there are many things that can go wrong at any time, which is why you need an insurance package that will cover all aspects and risks for your boat repair shop. An independent insurance agent can help you ensure that all of your risks are covered.
What Does Boat Repair Shop Insurance Cover?
Depending on the location of your boat repair shop and the services you offer, boat repair shop insurance packages will vary from business to business. However, most boat repair shop owners need at least the following basic business insurance coverage.
- Commercial general liability (CGL) insurance: Commercial general liability insurance is designed to protect you from the most basic liability issues that your boat repair shop may face. This includes being sued for damage to a third party's property or injuries as a result of the actions of an employee. CGL insurance pays for legal fees and medical bills associated with these events.
- Business property insurance: Business property insurance covers physical damage to your buildings and their contents. In addition to your repair shop and everything inside, you most likely have an office with equipment and machinery and a warehouse or storeroom with an inventory of common repair parts. All of these are covered under a commercial property policy.
- Business interruption coverage: Business interruption insurance is essential for covering your expenses if your repair shop has to temporarily close due to a covered event like a fire or a severe storm. Closing your doors means lost income, lost wages for your employees, and other financial hiccups, yet your rent and business expenses will still be due. Business interruption insurance helps pay for these ongoing expenses in the event of an unforeseen business closure.
- Bailee's insurance: If something damages customers' boats that are in your care, you're responsible for the costs to repair or replace them. Bailee's insurance helps pay the costs to repair or replace the damaged or destroyed property of others in your custody or control.
You'll also need to consider the following types of coverage for your boat repair shop:
- Inland marine insurance: If you'll be moving boats from one location to another, you may want to consider inland marine insurance. This coverage will protect your business should the boats be damaged while being relocated.
- Product liability insurance: Product liability insurance protects you from certain types of legal liability associated with a product defect that causes personal injury or damage associated with its use.
- Premises liability insurance: If a customer is walking on your property to pick up their boat and trips over a piece of inventory, you're liable for any injuries sustained. Premises liability insurance provides protection should someone get injured while on your business property.
- Equipment breakdown coverage: This covers losses arising from the ownership, use, and operation of boilers, machinery, and other commercial equipment. Equipment breakdown can involve machinery, equipment, electrical systems, and more.
- Commercial auto insurance: If you have any business-owned vehicles and drivers, you'll need commercial vehicle insurance to cover any accidents they're at fault for, as well as any damage to the vehicles themselves.
- Business owners policy (BOP): This is a package policy designed for small businesses. It combines property, liability, and business interruption coverage in one affordable policy.
An independent insurance agent can help you determine which types of coverage are important for your boat repair business.
What Does Boat Repair Shop Insurance Not Cover?
Basic business insurance policies spell out a variety of specific coverage exclusions, and it’s important to be mindful of all of them.
In many cases, the excluded property or situation can be covered with another policy or special endorsement (many of which are described above). If, for example, your general liability policy excludes coverage for pollution liability, but you have a serious pollution exposure, you can purchase a pollution liability insurance policy in addition to your other boat repair shop insurance policies.
Here are some typical business insurance exclusions:
- Pollution liability
- Claims resulting from damage to the property of others that is in the care, custody, and control of the business
- Product recall liability
- Any legal actions that do not involve a claim for bodily injury, property damage, personal injury, or advertising injury
- Most contract disputes
- Actions by a governmental agency related to failing to follow regulations
- Claims for back taxes
- Failure to provide a safe workplace/employee injuries
- Professional negligence or errors and omissions
- Employer’s liability claims
- Flood or earthquake damage
- Damage to certain property, including money, security, accounts, and bills; vehicles, aircraft, and watercraft; walkways, roads, and other paved surfaces; electronic data; cost of restoring information on valuable records
Most of these exclusions can be covered with some other type of policy or endorsement. But remember, no policy will ever cover you for intentional wrongdoing or criminal acts.
Talk to an independent insurance agent about where you may have gaps in your boat repair shop insurance so you can make sure you get any coverage you may be missing.
How Much Is Boat Repair Shop Insurance?
The cost to insure your boat repair shop will be determined by a number of factors. Every repair shop is different in size, offerings, and location, which can affect how much you pay.
Some of the factors that will determine your business insurance premiums include:
- The size of your business
- The weather and crime risks in the zip code where your store is located
- The value of your inventory and other business property
- The number of workers you employ
- The types of business insurance coverage you are purchasing
- How high you need your coverage limits to be
- Your store’s claims history
An independent insurance agent can help you find the most affordable coverage that also fits your needs.
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How Can an Independent Insurance Agent Help You Find the Best Boat Repair Shop Insurance?
Business insurance can be complex, and researching options can be confusing, time-consuming, and frustrating. An independent insurance agent can simplify the process.
A local agent can make sure you get the coverage that meets the needs of your boat repair shop. Not only that, your agent will also break down all the jargon and explain the details so you understand exactly what you're getting.
And when it comes time to file a claim, you’re not alone. Your agent will be there to help guide you through every step and help you get back to running your business.