What Does Boat Rental Insurance Cover?

There are a lot of businesses that provide boat rental services to clients without making it a core part of the company’s revenue model. Those companies frequently overlook the importance of rental insurance, especially for smaller craft and those operating on inland bodies of water. Every company that rents out watercraft needs rental insurance, though, because it covers the risks associated with providing a watercraft to independent operators who possess unknown levels of experience.

Core Coverage Provisions

When you work with a boat rental insurance company to assess your rental offerings and coverage needs, you’re getting coverage designed for the following situations:

  • Third-party liability protection to offset monetary damages owed if a client gets into an accident and injures someone
  • Asset protection for your vessels
  • Liability protection for injuries to customers due to malfunction or accident

Without this coverage, your company becomes liable for medical expenses and property damage if one of your rental boats is involved in an accident, in addition to the costs of repair or replacement.

Coverage for Any Watercraft

The same companies can cover your business whether you are renting out power boats for independent operation, renting house boats as vacation accommodations, or even just offering kayaks and other human-powered watercraft for daily use. The exact provisions and coverage levels differ according to the risks associated with each class of vessel, but you can count on the same company for protection no matter what you add to your rental selection.