What is Boat Rental Insurance?

Boat rental insurance is an insurance product available to cover a boat used in rentals and charters. This can include insurance maintained by the owner of the boat, as well as insurance taken out by renters to cover their liability for the period of the rental. The costs of repairing and replacing vessels can be very expensive, especially when paired with medical expenses for injuries, and boat rental insurance can mitigate these costs and prevent situations where people go into debt to cover expenses associated with damage, loss, or theft.

Many insurance companies, particularly those specializing in marine insurance, offer boat rental insurance. For boat owners, the insurance provides coverage if renters lose, steal, or damage a boat while they take it out. The insurance may cover all or part of the costs associated with repair or replacement. Owners can also carry liability insurance for accidents occurring on board, protecting themselves from suits for slip and falls and other issues on board.

When renting a boat, people can consider purchasing boat rental insurance. Sometimes, the boat rental company will offer it, and in other cases, people can make arrangements through a third party. The advantage of insurance is full coverage for liability in accidents and other misadventures, including replacement of the boat in the event of a catastrophe. Often, insurance costs are low because the risks are usually relatively minimal and the period of time covered by the insurance is short.

This insurance product does not cover damage caused by negligence and other named exclusions. People should make themselves familiar with excluded situations. It is advisable to exercise reasonable precautions when using a rental boat to avoid incidents, and to make sure that everyone on board is wearing a life vest and knows what to do in an emergency.

People considering boat rental insurance can ask for quotes to get an idea of the products available and the range of options. The insurance usually comes with a deductible, with people paying this amount before insurance benefits kick in. Higher deductible insurance is cheaper, but people must be able to cover the deductible for the insurance to be useful. Specialty insurance offering extra benefits like towing of disabled boats may be available at extra cost.

People who own and insure their own boats may want to ask if it's possible to get a special rider for a rental. Rental insurance is also sometimes provided through the credit card used to pay for the rental. People can check with their credit card companies to find out more about this option.