Boat Dealers Insurance

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Boat Dealers Insurance Policy Information

Boat Dealers Insurance

Boat Dealers Insurance. Boating is a beloved pastime of many. It's also a vital industry that plays a key role in the economy. Whether you sell leisure boats, such sailboats, speed boats, pontoon boats, or yachts, or you supply the vessels for business, such as ferries, water taxis, and fishing boats, you provide an invaluable service for your clients.

You're also exposed to a lot of risks. Some of those risks are similar to the risks that business owners in all industries face, while some are unique to boat dealers.

Boat dealers sell all types and sizes of watercraft, including jet skis, canoes, rowboats, inboard/outboard motorboats, sailboats, houseboats and yachts. Boat accessories and parts are usually sold, as well as other recreational items such as fishing gear, water skiing gear, and surfing equipment.

Boat dealers typically offer maintenance and repair services, either by performing the work themselves or by subcontracting to a specialty shop. Inventory and labor may fluctuate depending on the season.

The dealer may sell used watercraft from trade-ins, operate a marina or provide off-season boat storage. While a selection of boats may be displayed in a showroom, many are stored in open lots outside the building.

In order to protect yourself from the unexpected, having the right type of boat dealers insurance coverage is an absolute must.

What kind of insurance do you need? How much should you carry? Read on to find the answers to these questions and more.

Boat dealers insurance protects your dealership from lawsuits with rates as low as $59/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked boat dealers insurance questions:


How Much Does Accounting Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small boat dealerships ranges from $59 to $87 per month based on location, services offered, revenue, claims history and more.

Why Do Boat Dealers Need Insurance?

Boat For Sale

As mentioned, boat dealers are exposed to a variety of risks. While you do your best to make sure that everything with your business runs smoothly, there's always a chance that something could go wrong.

An employee could get injured on the job. A vendor could slip and fall while making a delivery to your dealership. A client could file a lawsuit against you, citing that the equipment you supplied was defective. Your inventory could be vandalized or your dealership could be damaged in a storm.

As the owner and operator of your boat dealership, you are liable for anything that does go wrong. That means that you are also responsible for paying any related expenses, and those expenses can be expensive.

Lawsuits, medical bills, repairs, and more; the cost of all of these things can be exorbitant. With the right type of boat dealers insurance coverage, if something does go wrong, instead of paying the expenses out of your own pocket, your carrier will cover them for you.

In other words, having the correct commercial insurance can protect you from serious financial losses. Plus, being properly insured ensures that your operation is legal, as some types of coverage are required by law.

What Type Of Insurance Do Boat Dealers Need?

There are several forms of boat dealers insurance coverage that boat dealerships should carry; however, the specific type of coverage you'll need does vary.

There are numerous factors that will affect the coverage you need, such as where your operation is located, the type of inventory you carry, and even the clients you serve. Because insurance needs vary, it's important to speak with an insurance agent who has experience covering boat dealers.

To give you a basic idea of the type of coverage you may need, however, here's a look at some of the policies that you will likely need to invest in:

  • Commercial General Liability: This type of insurance offers broad coverage for third-party bodily injury and property damage claims. For instance, if a vendor were to sustain an injury at your place of business and file a lawsuit against you, this policy would cover any expenses that would be related to such an incident, such as legal fees and any damages that a court may find you liable for.
  • Commercial Property: This coverage protects the physical structure of your business, some of the structures that surround it, and the contents within it from acts of nature, vandalism, and theft. For example, if a fire were to break out at your dealership, this coverage would help to pay for any necessary repairs, or to replace things that may not be reparable.
  • Business Income: In the event that you need to close your boat dealership down, business income insurance would help to cover any income that you might lose during the shutdown. For instance, if a fire were to break out and you needed to be closed until your facility was repaired, business income insurance would replace any income that you may lose during that period of time.
  • Workers' Compensation: You'll also need to carry a workers' compensation policy to protect your employees. In the event that a staff member suffers an injury at work, this policy would cover their medical expenses, as well as replace any wages that they may lose if they are unable to work as a result of that injury.

The above-mentioned policies are just a few examples of the type of boat dealers insurance coverage you should consider for your dealership.

Boat Dealership's Risks & Exposures

Boats In Marina

Premises liability exposure is high due to public access to the display areas, parking lots and repair areas. Floor coverings inside the showroom should be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure.

Waiting areas should be provided for customers whose vessels are being repaired. Customers should not be permitted access to the service area. The moving, rearranging and hooking up of owned and non-owned watercraft pose a collision hazard to persons or to property of others. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.

If the premises are open after dark, adequate lighting and appropriate security for the area must be present. Watercraft stored outside can pose an attractive nuisance to children and teens, especially in the off season. Chains and fences should be in place to prevent entrance to the dealership after hours.

Repair operations are the major products/completed operations exposures. There should be a check-off procedure in place prior to release of the watercraft to the customer to prevent its return with any vital functions not working properly.

General liability policies exclude most watercraft exposures. If boats can be taken onto the water for test drives by customers, a watercraft or ocean marine protection and indemnity coverage is needed.

Environmental impairment exposures can be significant due to the storage of gasoline and other flammable liquids in tanks and the disposal of used oils, solvents and other hazardous wastes from repair operations.

All above-ground and underground tanks and pipes are subject to state or federal regulations and should be routinely tested for leakage. Adequate procedures should be in place and must be followed to prevent any leakage or contamination. Contracts should be in place to dispose of all environmentally dangerous chemicals.

Workers compensation exposure is most significant in the repair operation and during transport. Back injuries, hernias, strains and sprains can result from lifting. Repair may involve painting, welding, or work with fiberglass hulls. Safety equipment should be provided.

Casual and seasonal labor can impact the ability to control hazards. Turnover may be high. If large boats are sold there may be work at heights. Refueling should be done only in well-ventilated areas to minimize inhaling of fumes. Information regarding chemicals should be available to employees along with early warning signs of problems. There may be Longshore and Harborworkers Compensation Act exposure if work is done on or near the water.

Property exposure comes from the flammable paints, lubricants, oils, degreasers, and solvents used in service and repair operations and the combustibility of watercraft. Flammables must be properly labeled, stored and separated. If done on premises, spray painting should be in spray booths with good ventilation, UL-approved wiring and fixtures and adequate controls.

Welding is often a part of the repair and body work operation that needs to be evaluated for proper handling of the tanks and gases and adequate separation from other operations with either a separate room or flash/welding curtains. Good housekeeping is critical. Greasy, oily rags must be kept in covered metal containers. Work areas must be cleaned regularly and trash removed from the building.

Lubricants and fuels should be drained from any watercraft stored during the off-season to reduce the potential for a fire. Wind, wind-driven water and hurricane damage pose catastrophe potential, especially if the operation is close to the water.

Theft is a concern as watercraft can be target items. Appropriate security controls must be taken including physical barriers such as chains, fences, or gates, lighting to deter access to the premises after hours, and an alarm system that reports directly to a central station or the police department.

Crime exposure comes from employee dishonesty, theft of money and securities, burglary and robbery. Employee dishonesty is controlled through background checks, inventory monitoring, control of the cash register, and division of duties. Physical audits should be conducted at least annually. Storage and handling of keys presents an often overlooked exposure to theft.

Inland marine exposure comes from accounts receivable if the dealer offers credit; bailees customers if the dealer offers service, repair, or storage; computers used to monitor inventory; floor plan coverage for watercraft furnished by manufacturers and held for sale; goods in transit if the dealer delivers watercraft to customers; and valuable papers and records for manufacturers' and customers' records.

Boats stored in the open are particularly susceptible to damage by hail, wind, flood, vandalism and theft. Areas should be well lighted with chains, fences or gates to prevent access and transport. The more expensive models should be moved inside to the showroom.

An alarm system that reports directly to a central station or the police department should be used. Security guards may be appropriate in some areas. Property on consignment or off premises at shows and exhibitions may require special controls and coverages.

Commercial auto exposure may be limited to hired and non-owned for employees running errands to pick up parts for repair operations. All employee drivers should have appropriate licenses with their MVRs regularly checked. All vehicles must be regularly maintained with records retained. There should be written procedures for personal and permissive use of vehicles furnished to employees.

If the dealership offers pickup and delivery of watercraft to its customers, the exposure increases. Transportation hazards include failure to secure the load properly and equipment failure, especially tie-downs and hitches. Drivers must be trained to transport oversized loads that can shift on the road. Random drug and alcohol testing should be conducted.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 5551 Boat Dealers, 3732 Boat Building And Repairing, 3731 Ship Building And Repairing
  • NAICS CODE: 441222 Boat Dealers, 441221 Motorcycle, ATV and Personal Watercraft Dealers
  • Suggested ISO General Liability Code(s): 10101, 91235
  • Suggested Workers Compensation Code(s): 8748, 6834, 6824

Description for 5551: Boat Dealers

Division G: Retail Trade | Major Group 55: Automotive Dealers And Gasoline Service Stations | Industry Group 555: Boat Dealers

5551 Boat Dealers: Establishments primarily engaged in the retail sale of new and used motor boats and other watercraft, marine supplies, and outboard motors.

  • Boat dealers-retail
  • Marine supply dealers-retail
  • Motorboat dealers-retail
  • Outboard motor dealers-retail

Description for 3732: Boat Building And Repairing

Division D: Manufacturing | Major Group 37: Transportation Equipment | Industry Group 373: Ship And Boat Building And Repairing

3732 Boat Building And Repairing: Establishments primarily engaged in building and repairing boats. Establishments primarily engaged in manufacturing rubber and nonrigid plastics boats are classified in Major Group 30. Establishments primarily engaged in operating marinas and which perform incidental boat repair are classified in Transportation, Industry 4493; membership yacht clubs are classified in Services, Industry 7997; and those performing outboard motor repair are classified in Services, Industry 7699.

  • Boat kits, not a model
  • Boats, fiberglass: building and repairing
  • Boats, rigid: plastics
  • Boats: motorboats, sailboats, rowboats, and canoes-building and
  • Canoes, building and repairing
  • Dinghies, building and repairing
  • Dories, building and repairing
  • Fishing boats, small
  • Houseboats, building and repairing
  • Hydrofoil boats
  • Kayaks, building and repairing
  • Life boats, building and repairing
  • Life rafts, except inflatable (rubber and plastics)
  • Motorboats, inboard and outboard: building and repairing
  • Pontoons, except aircraft and inflatable (rubber and plastics)
  • Skiffs, building and repairing

Description for 3731: Ship Building And Repairing

Division D: Manufacturing | Major Group 37: Transportation Equipment | Industry Group 373: Ship And Boat Building And Repairing

3731 Ship Building And Repairing: Establishments primarily engaged in building and repairing ships, barges, and lighters, whether self-propelled or towed by other craft. This industry also includes the conversion and alteration of ships and the manufacture of off-shore oil and gas well drilling and production platforms (whether or not self-propelled). Establishments primarily engaged in fabricating structural assemblies or components for ships, or subcontractors engaged in ship painting, joinery, carpentry work, and electrical wiring installation, are classified in other industries.

  • Barges, building and repairing
  • Cargo vessels, building and repairing
  • Combat ships, building and repairing
  • Crew boats, building and repairing
  • Dredges, building and repairing
  • Drilling and production platforms, floating, oil and gas
  • Drydocks, floating
  • Ferryboats, building and repairing
  • Fireboats, building and repairing
  • Fishing vessels, large: seiners and trawlers-building and repairing
  • Hydrofoil vessels
  • Landing ships, building and repairing
  • Lighters, marine: building and repairing
  • Lighthouse tenders, building and repairing
  • Marine rigging
  • Naval ships, building and repairing
  • Offshore supply boats, building and repairing
  • Passenger-cargo vessels, building and repairing
  • Patrol boats, building and repairing
  • Radar towers, floating
  • Sailing vessels, commercial: building and repairing
  • Scows, building and repairing
  • Seiners, building and repairing
  • Shipbuilding and repairing
  • Submarine tenders, building and repairing
  • Tankers (ships), building and repairing
  • Tenders (ships), building and repairing
  • Towboats, building and repairing
  • Transport vessels, passenger and troop: building and repairing
  • Trawlers, building and repairing
  • Tugboats, building and repairing

Boat Dealers Insurance - The Bottom Line

To find out more about the specific types of boat dealers insurance policies you'll need, how much coverage your dealership needs - speak with an experienced insurance broker.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

Additional Resources For Retail Insurance

Read valuable small business retail insurance policy information. In a retail business, you need to have the right type of commercial insurance coverage so that your store, employees, and inventory are protected.


Retail Insurance

Retail stores are susceptible to premises liability claims because of customer traffic, but large department and specialty stores are more susceptible than most.

All retail stores have significant property exposures. The on-hand stock represents a considerable investment, but the amount on hand fluctuates seasonally. For this reason, physical damage insurance on this property must be arranged carefully. When the insured occupies a non-owned building, insurance coverage must be arranged for the insured's interest in extensive improvements and betterments made to the premises.

Crime insurance, in the form of employee theft and money and securities coverage, is also very important.

The businessowners policy was designed with retail exposures and operations in mind. For this reason alone, it should always be the first type of package coverage to consider. However, for those risks not eligible for the business owners policy program, the commercial package policy (CPP) is a practical and convenient way to combine a number of coverages into one policy.

Retail businesses generate income through interaction with customers. This interaction is also how a customer can sustain an injury and then sue the retailer for damages. Hazards, exposures and operations both on premises and off are important and must be covered, but liability the retailer may incur because of the merchandise sold must also be considered and insurance protection arranged.

Inventory or stock is the major property exposure for most retail operations. Because stock values tend to fluctuate or have significant peaks at certain times of the year, value reporting or peak season valuation options should be considered. Business income coverage, including business income from dependent properties coverage, may mean the difference between a retail operation staying in business or being forced into bankruptcy following a loss.

When the insured occupies a non-owned building, insurance coverage must be arranged for the insured’s interest in extensive improvements and betterments made to the premises.

Most retail businesses offer endless opportunities for a variety of criminal activities. For this reason, the coverages needed must be carefully evaluated. Holdup and robbery losses may be the most obvious concerns but employee theft, fraud and counterfeit money losses are also serious issues that cannot be dismissed.

Retail businesses are gaining greater exposure to international issues because of the growth in sales via the internet. As these sales increase, the added exposures faced by these retailers must be evaluated. While their operating horizons are expanding so are their potential loss exposures.

Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.

Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Computer Fraud, Forgery, Bailees Customers, Goods in Transit, Jewelers Block, Cyber Liability, Employment-related Practices, Business Auto Liability and Physical Damage and Stop Gap Liability.


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