• Greg Botson

Boat Dealer Insurance Program

Boats come in all shapes and sizes, so shouldn't your boat dealership insurance be different than the dealer down the road? Find out why you need specialized boat insurance coverage tailored to your dealership.

Damaging weather, accident prone customers, and even employees can cause thousands of dollars worth of accidental damages. Not to mention the seemingly limitless amount of legal costs one could face if forced into a lawsuit.

Fortunately, boat dealers insurance is available to protect boat dealerships from the financial burdens of the unexpected. Dealership owners can feel confident they will be financially protected when they take the time to ensure they have proper insurance.

Specialized Boat Dealers Insurance Program

As you know, a boat is not just a boat. When a client steps onto your premises with an interest in buying a boat, you ask what kind and why. Are they looking for a small, used, weekend family fishing boat, a new speed boat or are they looking for a dealership that sells yachts? Just as every boat is different, so too is every boat dealership. That is why you need a specialized boat insurance policy from an agency that knows the difference.

Some dealers have a boat lot, while others use boat docks. Some offer storage, repair and docking, while others are small, sell only lots. Not only do boat dealers differ in how they operate, but some have massive outlets with many employees and others are small single or family run dealers.

The dealership operation, inventory, employees, and everything that makes it unique will determine the insurance requirements of the boat dealer needs.

By identifying the areas that make a boat dealer unique we can help customers purchase the appropriate coverage to protect themselves, without paying for coverage they do not need.

What is included in a boat dealers insurance program?

There are a lot of different coverage options that can be included in a boat dealers insurance program, but not every dealership will need to utilize every coverage available.

Here is an example of what a “standard” boat dealers insurance policy may look like:

  • Liability insurance for customers who get hurt or whose property gets damaged

  • Property coverage for the building, contents within the building, fences, docks, signs, etc.

  • Inventory coverage for damages, theft or vandalism on the dealership's inventory of boats

  • Truth in Lending errors and omission coverage to protect against lawsuits if the dealership did not completely or accurately disclose all the terms of the loan required by the Truth in Lending Act

  • Pollution liability insurance for the costs of damages, legal defense and clean-up of accidental spills

All boat dealers will face similar risks regarding their dealerships, which will require the coverage above.

However, there are additional insurance options that dealers should consider based on their operations. Here are a few:

  • Flood insurance

  • Workers Compensation

  • Liability for daily rentals

  • Employment practices liability

  • Special events liability

  • Commercial umbrella coverage

This is not a complete list, but it allows you to see how a boat dealer's insurance program should be customized to meet your specific needs. Some will need more coverage while others will need less, depending on their individual operations.

Advice for getting the best boat dealers insurance

In this article, we discussed the importance of having a specialized policy because of the varying risks from one dealer to the next. There are many options, so it is important to ensure your plan meets your specific needs. However, there is more that goes into insurance than choosing a few insurance policies that make sense.

To get more out of your insurance, ask yourself these questions:

  • Does it cover what makes the dealership unique? Does it cover the repair portion, the land and water aspects, or whatever makes your dealership different than the guy down the road?

  • Is coverage enough? If the worst-case scenario happens, and all your inventory is destroyed, will your insurance be adequate enough for your dealership to survive?

  • Is the price affordable? No one can expect their insurance to be free, but there is such a thing as paying too much for coverage. Just make sure you don't lose out on coverage by saving a few dollars.

Many agents can write a boat dealer's insurance program, but not all of them can provide you with everything you need. An expert in boat dealers insurance will be able to use their expertise to provide you with the insurance you need and give you advice that will make your experience a better one.

If you wish to speak with an expert on boat dealers insurance, who works with a top rated insurance company, then call use at 440-934-1603. With our expertise and the backing of one of the top insurance carriers for boat dealers, we will be able to provide you with an insurance program that you can confidently work with.

62 views0 comments