Commercial Auto Insurance for Boat Delivery and Transport

Insurance coverage for vehicles is straightforward when they are being used. When a car is on the road or when a boat is on the water and there’s an accident, insurance coverage kicks in.

However, when a boat is out of the water and loaded onto a truck, and that vehicle gets in an accident, whose insurance covers which part of the damages?

Businesses that transport boats need commercial auto insurance, to protect against losses that can happen when moving them overland.

Even a small business that only moves boats a short distance from the docks to a seasonal storage space needs commercial auto insurance designed for boat transport. Although a boat owner’s insurance will cover some aspects of incidental damage that happens during transport, a boat transport business needs its own insurance coverage.

What is commercial auto coverage?

Commercial auto coverage is designed to protect vehicles used for specific jobs. Most personal vehicle insurance policies do not cover accidents or damages that occur while a vehicle is being used for work purposes.

If you use a personal truck to tow boats as part of your business, you will likely need both personal and commercial auto coverage. This means you will have two policies covering one vehicle, which can be confusing. Think of it this way: you are insuring your personal vehicle for two different purposes, because the risks are different.

For example, let’s say you run a small business that tows boats from a marina to an off-season storage facility a few miles away, where boats are worked on and stored over the winter. This is highly seasonal, part-time work, and you own a heavy-duty truck that also serves as your personal vehicle, which is what you use to tow the boats.

Because you’re doing this towing in a business capacity, if you are in an accident while towing someone else’s boat, your personal insurance is unlikely to cover the damage. Virtually all personal insurance policies specifically exclude vehicles damaged when being used for commercial purposes.

Commercial auto coverage differs from individual coverage in a number of ways, primarily directed by the differing risks associated with using a vehicle for personal reasons versus work tasks. Because the risks are different, the coverage and costs are different too.

What if you have multiple employees who use personal vehicles for work purposes?

If your business model is to employ several employees who use their own trucks to tow boats, you may need a non-owned vehicle policy, also called Hired and Non-Owned Auto (HNOA) coverage. This type of policy covers employees who use their own vehicles for business purposes.

Hired and non-owned auto coverage also protects your business when an employee is asked to do a work task using a personal vehicle.

This would cover an instance such as you asking an employee to use your truck to haul a boat from storage back to the marina. Something as simple as handing a trusted employee the keys to your vehicle to complete a task can get very complicated if they are in an accident and you don’t have the right coverage.

How does commercial vehicle insurance protect boat delivery and transport?

Commercial vehicle insurance protects your boat delivery business by covering costs related to accidents that happen in the course of doing business.

This means that if one of the vehicles being used to move boats is in an accident, causing damage or injury, commercial insurance will kick in to cover resulting claims.

Liability coverage in your commercial policy typically includes both bodily injury and property damage claims.

Much of what a commercial policy covers is very similar to what an individual auto insurance policy includes—the difference is that it covers vehicles used for business purposes. Your commercial vehicle policy will likely have under/uninsured motorist coverage and collision and comprehensive coverage, just like an individual policy would offer.

What doesn’t commercial vehicle insurance cover?

Coverage exemptions will vary by policy, but there are things that your commercial vehicle insurance does not cover.

Injuries that result from something other than a vehicle accident are a common exclusion. If one of your employees is injured while loading a boat, that is not going to be covered by commercial vehicle insurance—it is more likely to be a worker’s compensation insurance claim.

To learn more about what is and is not covered by your commercial vehicle insurance, check your policy or talk to your agent.

What types of vehicles are covered by commercial vehicle insurance?

Commercial vehicle policies can cover many different types of vehicles, with coverage and premiums based on the types of risks involved.

For boat delivery and transport, much will depend on the size and types of boats you are moving, how far the boats are typically transported, and the types of vehicles used.

A small business that uses a fleet of heavy-duty pickup trucks to transport smaller boats one at a time over short distances will need different coverage than a company that moves yachts on a marine highway trailer cross-country.

Commercial vehicle insurance is available for trucks and trailers, cars, vans, and more.

How much does commercial auto insurance for boat delivery cost?

Your premium rate is determined by a number of factors, including where your business is located, how far the boats are being transported, and the size and type of boats that you are delivering.

If you are interested in learning more about commercial auto insurance for your boat transport business, contact the professionals at Rate Insurance. With access to a range of commercial insurers, they can help you find the right commercial auto insurance that meets your boat transport and delivery business needs, at the right price.

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