A boat charter service is a business that hires people to take customers out for rides on their boats. When a motorboat crashes with watercraft, there are injuries and even fatalities. The boat charter service must have insurance to protect the company from these unfortunate events. Here are five key reasons why the company should have insurance.
1. Liability Coverage
A boat charter service has limited liability insurance to protect it from injury caused by accidents. The company can be sued or fined if there is an accident, but it must have protection against this. There are several types of liability coverage available to the company, such as bodily injury and property damage. When the customer files a claim with the insurance company, they will be paid immediately, which is convenient for both sides of the case.
2. Bodily Injury Coverage
If the boat or equipment were to injure someone, then it is covered. There are limits to this coverage. This type of insurance is very important if there are employees on the boat with customers because they are in danger of being hurt themselves. If there is an accident between one of the employees and someone else, then the company can be sued for not taking precautions to keep their workers safe. Insurance protects them from these lawsuits by paying out with a set amount that the company has previously agreed upon with the insurance company.
3. Property Damage Coverage
The company must have property damage coverage so that they are not responsible for the cost of repairing or replacing any damaged equipment or property. If there is an accident, it can be devastating to the company to be responsible for all of this. Therefore, this type of insurance is important. When there is a crash between the boat and another watercraft, it may damage the aluminum railing or other parts of the boat. The insurance company will reimburse the company for all of these expenses.
4. Medical Payments Coverage
The insurance company will help pay for the medical expenses of customers who have injuries as a result of a crash. The company must have private passenger insurance to provide this type of coverage for its customers. The ability to do this saves the company money because it does not have to pay for any of the medical bills that are surrounding an accident if they are covered by private passenger insurance.
5. Marine Loan Insurance
The company must have marine loan insurance so that it can pay for other people’s boats during the time their boat is out of commission. If a customer takes a boat out on their own and causes damage to it, then it can become costly to replace it. Therefore, the insurance company will help cover the cost of repairing or replacing a damaged boat so that the customer’s boat can be put back in service again quickly.
With the insurance explained in this article, the company is protected from a lot of things that may occur. Having insurance protects the business from being sued or fined for injuries. It also protects the customers from having to pay for these things out of their pocket if they get hurt or file a claim. It is important to have comprehensive coverage at all times to protect everyone involved with a boat charter service.