Insurance for watersports operators is unique compared to land-based businesses. From boats and docks to guests and staff, the risks are different, and so are the coverages you need. Whether you’re new to the industry or a seasoned operator, it’s critical to work with a broker who specializes in watersports and understands how to properly protect your business.
A simple way to think about your insurance program is in two buckets: First-Party Coverage (protection for your assets and income) and Third-Party Coverage (protection against liability to others).
First-Party Coverages
These policies protect your assets and capital when a covered physical loss occurs. This includes your vessels, docks, equipment, and even lost income if your operation is forced to shut down temporarily.
A comprehensive marine package typically includes:
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Commercial Property
Coverage for buildings, storage structures, and business personal property you own or lease. Often includes Business Income coverage. -
Vessel Physical Damage
Protection for watercraft owned by your business — boats, jet skis, kayaks, paddleboards, and more — including hulls and motors. -
Piers & Wharves
Coverage for docks, slips, and piers you own or lease, with the option to extend to Business Income.
Third-Party Coverages
These protect you if your operation’s actions (or inactions) cause injury or property damage to others.
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Marine General Liability
Covers premises liability (slip-and-fall on docks, piers, or buildings) and work performed for third parties (boat repair, storage, fuel sales, etc.). -
Protection & Indemnity (P&I)
Covers passengers aboard your vessels, whether for charters, rentals, excursions, or in-water activities. Also protects you and your customers if your vessels cause injury or damage to other boaters or third parties.
Other Key Coverages to Consider
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Workers Compensation / Crew Liability / USL&H
Protects staff depending on whether they are land-based, vessel-based (Jones Act), or covered under the U.S. Longshore & Harbor Workers Act. -
Errors & Omissions (E&O)
Covers financial loss to a third party due to a mistake or failure to deliver agreed-upon services (e.g., failing to confirm a booking). -
Employment Practices Liability (EPLI)
Protection against claims such as wrongful termination, discrimination, or harassment. -
Crime Coverage
Protection against theft, embezzlement, funds transfer fraud, and robbery. -
Cyber Liability
Safeguards against data breaches, stolen payment information, social engineering, or computer viruses.
Risk Management Best Practices
Strong coverage is only one part of the picture, prevention is just as important. Operators should implement:
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Legally reviewed waivers of liability tailored to your state and industry.
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Inspection & maintenance logs for all vessels and equipment.
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Training manuals for new hires, operations, and safety protocols.
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Independent vessel inspections to document seaworthiness.
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Severe weather contingency plans.
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Incident response forms to standardize reporting.
If you need a review of your insurance program to make sure you have all the necessary coverages in place, contact our Watersports team today.
