What are Boat Owners Liable for When Renting Out Boats?
Posted on Tue, Apr 12, 2011
Of the many things a boat owner must take into consideration when renting out a boat, the most important is boat insurance.
When you lend (or rent) your boat you lend your insurance. You want to be sure that you’re covered.
A standard boat insurance policy will cover two types of risks: physical damage and liability. The physical damage section will cover any damage caused to the vessel, engine or sails through loss or collision. It also covers fire, theft and other damages.
The liability section covers any claims made against the boat owner for personal injury, loss of life or damage to property.
Typically the physical damage section of the policy covers all potential risks unless certain risks are expressly excluded. What’s excluded varies from policy to policy and insurance company to insurance company. It is important for the boat owner to check with your insurance broker to see which exclusions do and don’t apply.
If the boat owner only want specific risks covered, it is possible to get a ‘named perils’ policy in some cases although ‘all risk’ policies are more common.
Marine policies are usually either ‘Agreed Value’ or ‘Actual Cash Value.’ While the former is value agreed between the owner and insurance company, the latter is based on the market value of the vessel.
The liability section of the policy provides necessary cover in the instance that the boat causes damage to another person or another vessel.
These are just some of the factors that a boat owner must take into account before renting out a boat. To ensure that you are advising your boat renters of their responsibilities, download our free boat safety checklist!