Commonly referred to as P&I, Protection and Indemnity insurance can be loosely compared to auto insurance, but for a boat. P&I generally includes coverage for:
- Liability (reference Part 1 above)
- Hull / Motors / Equipment (You Are Here)
- Crew, also known as Jones Act Coverage (reference Part 3 above)
Hull / Motors / Equipment
Commercial watercraft of any type represent a significant investment. Work boats, barges, and even skiffs are expensive, especially when adding cost of engines and attached equipment. It is helpful for a boat owner to add up the replacement cost of a lost vessel and consider if it would have a business impact worth insuring against.
While in use, boats are subject to damage from fire, collision with underwater objects, and weather. Even if properly moored, boats are still subject to storm damage or sinking due to failed seals. Fortunately, insurance coverage is available and surprisingly affordable.
Insured Value
Although some insurance companies break out coverage separately between the hull, motors, and attached equipment, most simply lump it together into a single insured value. Thus, if your hull costs $10,000, your engines $10,000, and invest another $10,000 in attached davits/sorters/comm gear, then your policy would indicate a single insured value of $30,000.
Pricing
Pricing is affected by many factors. The primary ones include:
- The waters in which you operate
- The intended use of the vessel
- Vessel age
- Vessel condition
With that disclaimer, here are some general guidelines of what a seafood grower that operates in near-shore, shallow water might expect to pay for each kinds of coverage:
- Liability: $1,000,000 level of protection runs about $600 per year per boat.
- Hull / Motors / Equipment: Between 1.5% and 2.5% of insured value.
- Crew, also known as Jones Act coverage: $1,000,000 of protection costs about $1,200 per year per seaman. We have a special program with an insurance carrier available in DE, MA, MD, NC, NJ, OH, PA, and VA that provides $300,000 of limited protection for $410 per year.
Quotes
Obtaining a quote is simple.
- Call us at (877) 606-1375, or
- Complete an application. Email it back to sales@bankersinsurance.net or fax to 757.442.4149.
- Commercial Boat Application .pdf
Some clients have even filled out an application, snapped a photo of it, and sent that along. Photos of the vessel are also a great help.
Find this post helpful?
- Share it using the links below.
- Sign Up for our mailing list.
- Browse all our seafood-related insurance posts.
Disclaimer: P&I insurance includes several coverages not listed, and can be customized with limitations in many ways. Read your policy and ask your insurance agent to review it with you.
Comments are closed.