Commercial boat insurance

Hagerty warns that coverage under a personal boat policy ends as soon as a paying passenger comes on board. Chubb says most boat and yacht policies won't cover you while the vessel is hired out or has guests who paid to be on it.

This can apply even to a one-off paid trip. If a passenger were hurt, your personal policy may not pay, so check with your insurer before you take anyone out for money.

This type of cover is designed for boats that carry people for a fee. According to one charter insurance agency, the big difference from ordinary pleasure boat cover comes down to liability for guests who pay to ride. Liability is about covering injuries or damage that others say you caused.

Many small charter boats are what the Coast Guard calls uninspected passenger vessels, often called six-pack charters. By law, the U.S. Coast Guard says, they can carry no more than six paying passengers.

Where you're allowed to operate also depends on the captain's license. A Near Coastal license for this sort of vessel may only allow travel up to 100 miles offshore, the Coast Guard says, and these licenses don't cover international voyages at all.

Markel's Tradesman program covers charter boats used for guided trips, bareboat rentals, sightseeing and sportfishing.

When the same boat is both chartered and rented out, Markel allows it to be listed for both uses under one policy. Markel's preferred charter package, which applies to sport fishing only, includes referral liability and permits limited commercial fishing.

State Farm offers an add-on for incidental commercial fishing, with business liability limited to watercraft liability.

Paying a captain or crew raises the stakes. The Jones Act is a federal law protecting people who work aboard boats. Under the Jones Act, a seaman who gets hurt can take the employer to court and ask for a jury trial.

Markel's marine business policy covers legal liability toward a paid captain or crew, including obligations that come from the Jones Act and from general maritime law. A solid policy, Chubb says, will also separately cover shore-based workers who get hurt while on the vessel, through the Longshore and Harbor Workers' Compensation Act.

Hagerty's Marine Business Insurance, which is written together with Markel, comes with business interruption cover as well. This helps replace income lost while your boat is out of service following a covered physical loss.

The available sources don't give a standard price. What we can say is that crew cover tends to be a separate charter add-on, and the cost depends on how many crew members you have. The more crew you have, the more that portion costs.

The limits you pick also shape what you pay. One charter agency's example six-pack policy lists these figures:

Bigger limits usually mean stronger protection, so comparing quotes with matching limits side by side is worth doing.