Whether you are running a boat rental company or a yacht chartering vessel, risk management is essential. This term is often used with financial operations, but it applies to just about every other industry as well, from construction to boating. All businesses benefit from assessing the potential for various risks and then developing contingency plans ahead of time for handling difficult circumstances should they occur.
If your business involves yacht chartering, you need a detailed risk management plan. Not every threat can be predicted, but if you are prepared for the most common situations, you will be ready to respond when needed. Comprehensive yacht insurance is part of any thorough safety plan for those with a chartering business.
What does a yacht policy cover?
The best yacht policies offer valuable coverage such as oil pollution liability and substitute yacht coverage. Essential protections you need include:
- Consequential damage protection, including damage from sinking, explosions, and fires
- Contractual liability coverage, which protects your interests as a boat owner against waivers of subrogation proffered by boatyards and marinas
- Crew liability coverage is important, especially on longer trips
You should also look for coverage of defense costs outside of the policy limits in the event of liability litigation. Without this particular type of important coverage, you could be held responsible for paying settlements.
What are ways to reduce boating dangers?
If you charter a yacht, you certainly need reliable OC yacht insurance. However, there are other ways you can help your vessel, your crew, and your passengers stay safe.
- Take a boating safety course from a reliable source such as the United States Coast Guard to refresh and enhance your safety knowledge.
- Conduct a safety briefing with your crew and passengers before every outing. Everyone needs to know where life jackets are and how to wear them.
- Make sure your vessel has safety equipment such as flares, fire extinguishers, and a sound-producing device such as a mechanized horn for use in low-visibility situations.
- Stay abreast of maritime news, trends, and developments. Keep your licenses current and your training up-to-date.
As a Captain, you have much responsibility. You must safely steer your vessel through water, perhaps in the dark and at speed, while watching for other vessels, divers, swimmers, and hazards, both human-made and natural. While quality OC yacht insurance is vital, you must have the knowledge and understand your duties and responsibilities to safeguard not only those on your vessel but also everyone else on and in the water.
How can you be the best possible vessel operator?
Operating a yacht on open waters is a big responsibility, but it is also great fun. Before the enjoyment comes, however, you need to make sure you have taken care of important details. Set up a risk management plan that includes comprehensive insurance and education for your crew and passengers. Always sail with safety equipment and with a current knowledge of maritime best practices.
About Mariners Insurance
Mariners General Insurance Group was founded in 1959 to protect boat owners and marine business clients. We are marine insurance experts and insure boats worldwide – in every ocean on the planet. Marine insurance is critical if you own a boat or nautical business. Trust the professionals with all of your Boat Insurance needs – trust Mariners Insurance. Call us at (888) 402-5018 any time you have questions or concerns about insurance for your vessel or marine business.