How Much Does Commercial Boat Insurance Cost?

Did you know that Florida has more than 1 million registered boats? In fact, there are so many boats in Florida that it’s known as the Boating Capital of the World for both commercial and private boats. Of course, if you own a commercial boat, you might be looking to get insurance for it and wondering how much boating insurance costs. The truth is that most boat insurance policies cost about 1.5 to 5 percent of the boat’s market value. However, there are factors that can influence how much you spend on your insurance premiums. Let’s take a look at everything that goes into calculating your boat insurance premiums.

What can commercial boat insurance owners expect to pay for insurance?

Florida’s commercial boat insurance tends to be slightly higher than that of other states. This means that if you’ve owned and operated boats in other states, you might find Florida’s insurance to be higher than you’re accustomed to. For example, Progressive states that their boat insurance in Wisconsin from 2022 to 2023 was $261, but in Florida, it was $812.

In general, commercial boat owners can expect to pay between 1 and 5 percent of their boat’s value. This means that if the commercial boat owner has one fishing vessel and it’s valued at $300,000, the owner could expect to pay between $3,000 and $15,000 per year in premiums.

The Factors that Affect Commercial Boat Insurance Rates

When you get a quote for boat insurance, the Florida insurance agent will ask several questions about you and your commercial boat in order to determine your premiums. Some factors that influence your rates include:

  • Boat Length – The size of your commercial vessel will factor into your insurance rates, with longer and larger boats resulting in higher premiums.
  • Boating and Driving History – To calculate your boat insurance premiums, your insurer will look at your boating and driving history. If you’ve had a lot of claims, accidents or tickets, your insurance premiums may be higher than someone who has a clean driving and boating history.
  • Boating Safety Course History – Completing a boating safety course or additional safety training may help to reduce your boat insurance premiums.
  • Coverage Options – The amount of coverage and optional coverages you choose may affect the cost of your boat insurance premiums.
  • Cruising Area – If your boat typically stays near the shore, your insurance premiums may be lower than someone who travels offshore or in open waters.
  • Speed and Horsepower – If your boat has the ability to travel at high speeds or has a lot of horsepower, your premiums may be higher than if you owned a slower boat.
  • Type and Age of Boat – New boats typically cost more to insure than older boats.
  • Value of the Boat – Expensive boats and luxury boats, like yachts, typically result in higher boat insurance premiums.
  • Your Deductible – Boat owners with higher deductibles often pay less in monthly premiums because you are assuming more of the risk if your boat is damaged by an accident or covered event.

How to Get Lower Boat Insurance Premiums

If you’re worried that your boat insurance premiums will be too high, there are things you can do to make your rates more affordable.

  • Ask About Multi-Line Discounts or Bundling – Some insurance companies will give you a discount if you have more than one policy with them.
  • Insure More than One Boat – Some insurance companies will offer discounts if you insure more than one boat with them.
  • Storage or Lay-Up Discounts – If your boat goes into storage for several months of the year, you could be eligible for a discount on your insurance premiums.
  • Paid-in-Full Discounts – If you pay your commercial boat insurance premiums up front for the year, you might receive a discount on the cost.

Commercial Boat Insurance Coverages

Commercial boat insurance typically covers property damage, liability, medical payments and uninsured watercraft.

  • Hull Insurance – This coverage helps financially protect you if your hull is damaged in the water. It also covers the other boater’s hull if you’re in an accident.
  • Marine Liability – Marine liability insurance financially protects you if someone’s property is damaged. This includes passengers and crew members.
  • Uninsured Watercraft – If you’re in an accident with a boat that isn’t insured, this coverage helps pay for the damage to your boat.
  • Towing to Shore – If your commercial boat breaks down, your insurance policy can help cover the costs of towing it to shore.

Affordable Commercial Boat Insurance with Fearnow in Florida

If you’re looking for affordable commercial boat insurance in Florida, our independent agents at Fearnow can help you. We can look through hundreds of policies from multiple insurance carriers in order to find the right policy for your business needs. We can help you ensure commercial fishing vessels, container ships, cargo ships, dredgers, trawlers, tugboats, and passenger vessels. We even offer boat dealership insurance.

To learn more about our commercial boat insurance, give us a call at 813-689-8878.