Protecting Your Personal Watercraft Rental Business

 

With the arrival of the summer boating season, rental companies are preparing for the influx of tourists clamoring to get out on the water. Taking on the business of renting watercraft comes with inherent risks. Weather hazards, craft issues, operator errors and other boaters all have the potential to pose a significant legal and financial burden.

When the craft you offer for rent includes personal watercraft, you require protection designed specifically for these types of boats. Standard boat insurance does not cover sea-doos, jet skis, or wave runners.

Procuring the Right Coverage

Your insurance for your rental craft should cover your business and your customers in case of accidents and injuries. A good insurance policy offers coverage for:

  • Hull damage – Repairs and replacements for damaged boats can be costly. If your personal watercraft property is damaged, you need to be sure that your policy protects your investment.
  • Watercraft damages – As the owner of a personal watercraft rental company, you are entrusting your property to the care of someone else while they operate your boats. A good insurance policy offers protection in the event a renter is injured, or another person’s property is damaged, while the machine is in use.
  • Liability – A good liability plan is necessary to protect your company against accidents and injuries occurring on the premises.

Insuring jet skis, see-doos and wave runners is a special consideration when you operate a personal watercraft rental company. To stay afloat, make sure your business and your customers are protected as the summer season gets underway.

8 Liabilities Excluded from Your Boating Policy

Anyone who purchases a new vehicle, house, or boat often seeks a comprehensive insurance policy to protect their new investment. However, unless you ask your insurance broker a lot of questions, you may find yourself surprised when your claim is denied under an exclusions clause.

Common Boating Exclusions

The team at Merrimac deals with many insurance policies and claims, and they know how important it is to understand the exclusions of your policy. Here are some of the more common boat insurance exclusions.

  1. Repairs or replacements as a result of general wear and tear associated with gradual deterioration and saltwater corrosion.
  2. Damage from marine life such as sharks, whales, or octopi.
  3. Damage caused by infestations of mold, animals, or insects whether in storage or during use.
  4. Repair or replacement parts for machinery or equipment that has deteriorated, been used improperly, has a production defect or has never received proper maintenance.
  5. Damage or loss stemming from improper storage, securing, or towing.
  6. Loss or damage associated with boating accessories such as life jackets, GPS equipment, modifications, or the anchor.
  7. Damages incurred through sporting or boating competitions or improper use.
  8. Loss or damage that arises during an accident when an un-named insurer is behind the wheel.

Don’t be caught off guard. Know the exclusions before you sign the insurance contract.