If you plan to use your boat to carry passengers, you need to know about new regulations that make passenger liability insurance mandatory for marine passenger vessels.
These regulations don’t affect you if you just use your boat for private pleasure use. But if you use your boat for any of the following activities then the compulsory insurance regulations apply to you:
- Using boat for fundraisers or charity events if it involves giving rides to the public
- If you use the boat as part of your employment (Real Estate agents, carrying employees etc.)
- If you use your boat to entertain business clients or employees
- If your boat is owned by a corporation, numbered company or holding company
The new regulation come into effect January 11, 2019 and will require you to maintain a minimum of $250,000 of liability insurance coverage, multiplied by the passenger capacity of the vessel.
So a cruiser or sailboat capable of carrying twelve passengers needs to have minimum liability coverage of $3 million. This limit applies even if the boat owner does not intend to carry that many passengers.
All of this assumes your insurance company will even permit use of the boat for any commercial activity such as carrying passengers.
So, before you offer to use your boat for a charity fundraiser contact your boat insurance broker to confirm you have adequate coverage limits and that the commercial activity does not invalidate your boat insurance policy.
Need clarification, or have an additional question, contact me directly. I’m here to help.
Michael Hewett
Vice President | Skippers’ Plan
michael_hewett@ajg.com
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