Commercial fishing boat insurance

What is commercial fishing vessel insurance?

Commercial fishing vessel insurance, or commercial fishing boat insurance does exactly what its name. It protects commercial fishing vessels against having to pay for damages out of pocket. These include, but aren’t limited to equipment, machinery and vessel hull repairs, missing boats, at sea perils like heavy weather that require salvaging, captain or crew negligence, damage to other boats and more. Commercial fishing vessels have to be careful because they go out on the water daily and are always vulnerable to risks.

Commercial vessel insurance protects you, your passengers, your fishing boat(s) and your business. It adds an extra layer of protection in case something goes wrong. After all, you never know what will happen once you make your way out onto the open water. If an incident occurs and you don’t have commercial vessel insurance, you are taking the risk of having to pay for the damages out of pocket. With the right coverage, you don’t have to. Next, we will discuss the different types of commercial fishing vessel insurance coverage.

What types of insurance coverage protect commercial fishing vessels?

When it comes to this type of commercial marine insurance, there are many risks. As a result, various coverage options are available to protect you and your boat, whether you’re a competent captain or a fire-time boat owner. Here’s some more information about each type of insurance coverage available for commercial fishing boats:

Hull insurance

If your boat gets physically damaged, you will receive compensation if you have hull insurance coverage. It can help repair the hull, deck, cabin, railings and other types of permanently attached equipment, including winches, booms, radar, fish-finders and electronics. The following at-sea perils are covered:

• Collisions with other boats or objects
• Grounding or hitting objects underwater
• Sinking
• Capsizing
• Fires
• Inclement weather (e.g. hurricanes, lightning, etc.)

You can also receive compensation if your vessel is vandalized or suffers significant mechanical issues. Having adequate hull insurance is key to repairing your boat and getting back to fishing sooner. Opting out of it can leave your boat in disrepair for longer, which interrupts your business and costs you potential revenue.

Protection and indemnity insurance

If you are worried about facing lawsuits, additional coverage options such as protection and indemnity insurance can help. It offers a form of coverage that protects you if your crew members are injured, you collide with another boat, and you end up damaging the environment. Consider this the best type of comprehensive insurance coverage for commercial fishermen.

Liability insurance

Having hull insurance is helpful because it covers damage to your boat and if you or your crew members suffer injuries. In contrast, liability insurance acts as a safeguard if you harm others. This matters because anything can happen, whether you’re fishing in the ocean or on a lake. Always pay attention to your surroundings when you’re out on the open water.

If your fishing boat crashes into another vessel, pier, buoy, or underwater structure, liability coverage will protect you. If crew members, passengers or anyone is injured as a result of the negligent operation of your fishing vessel, your insurance company will help provide compensation.

When someone makes a third-party liability claim of bodily injury or property damage, the costs can add up. However, by purchasing liability coverage, you are mitigating this risk even if you are held liable for the damages. As a result, this part of our fishing vessel insurance policy will help you keep your business intact for years to come.

Equipment insurance

The equipment on your commercial fishing vessel means everything to your fishing business. In the fishing industry, you’re only as good as the equipment you have. If you lose or damage your equipment, replacing it isn’t cheap. This is especially true if you have to pay for everything out of pocket. Commercial fishermen often use the following:

• Nets, traps, pots, lines, and additional gear
• GPS, radars, fish finders and other on-board electronics
• Life, EPIRBs, survival suits and additional safety equipment
• Packing materials, refrigeration and other types of storage
• Propellers, generators, pumps and other spare parts

Commercial fishing businesses need all of this equipment to thrive. Luckily, equipment insurance coverage provides a financial safety net in the event that any of these are damaged or lost. With proper coverage, you can resume your operations and get your fishing business up and running even sooner. However, it’s important to note that certain policies will not provide coverage for gear that isn’t on the boat.

Uninsured boater insurance

We know what you’re thinking. Uninsured boater coverage sounds similar to uninsured automobile coverage — coincidentally, they serve a similar purpose. Commercial fishermen or any other boater without insurance will be held at fault if an accident occurs. By purchasing this coverage, you will be compensated for any damage to your boat caused by an uninsured boater.

When you go out fishing, you are putting your commercial fishing business at risk. If you get into an accident with an uninsured boater, you will have to pay for the damages out of pocket if you don’t have coverage. Always insure fishing vessels to prevent financial hardships in the future. You should also note that your insurance rates will go up if you’re at fault and the other boat driver also has insurance.

Pollution insurance

Fishing vessel insurance policies dictate that you must have some form of pollution insurance. When you take your boat out on the water, leaks can happen. If fuel, oil or chemicals make their way into the water, you can be held responsible. However, if you have insurance coverage, it will cover containment, cleanup, damages, and lawsuits involving environmental impacts.

If a spill occurs, the boat owner has to contribute to the cleanup if they are the ones responsible. Without the minimum amount of pollution insurance coverage, you will have to pay expensive fines. You also risk losing your commercial fishing business. Having insurance will help keep our oceans and lakes cleaner while preventing any significant financial losses.

Catch insurance

As a fishing business, your products are a hot commodity. Because of this, you’ll want to protect the fish you reel in with catch insurance coverage. Having this type of coverage will compensate if the fish you catch are damaged while being transported back to shore or spoil before you take them to the market. Without this coverage, you will lose the money you would otherwise earn for the day.

There are many types of coverage available that can give you peace of mind and let you fish without worrying. Fishing boats are a valuable resource that shouldn’t be overlooked by anyone running a commercial fishing business.

However, this isn’t the only thing you have to protect with a proper insurance policy. Remember that you won’t be approved for an insurance policy instantly — your insurance company will have a few questions. In the next section, we will discuss what your insurance company will want to know before approving you for a policy.

What does your insurance company need to know before granting commercial fishing boat insurance?

Before you are given an insurance policy, your insurance company will want to know a few things. This often includes information about your boat and your fishing business. It will help determine the price of your insurance policy and what types of coverage you need. If you’re honest with your insurance company from the start, you can avoid misrepresentation charges later and get the coverage you need. Here’s what your insurance provider will want to know about:

Where and what type of fish you catch

If you’re a commercial fisherman, you likely specialize in catching a certain type of fish. The fish you catch will increase or mitigate your level of risk. This is because each type of fish has its own catching process, which determines when you will be out on the water. Consider seasonal boat insurance if you don’t operate year-round. Additionally, where you catch these fish is important because there are navigational limits that have to be included in your licence conditions.

The market value of your commercial fishing vessel

Age and weight make a difference when it comes to commercial fishing vessels. They help determine how much your boat costs in today’s everchanging market. For example, a boat that weighs over 15 tonnes requires a Canadian Stewardship Inspection to operate safely. When your fishing boat is more than 15 years old, you also need to get an inspection before taking it out on the water. When either of these things is true, you have to meet boat safety requirements before you can begin operating your business.

Captain of your commercial fishing boat

When you purchase car insurance, your insurer will ask you who the primary driver is. This isn’t any different when you are running a commercial fishing business. The captain of your boat is considered the primary driver and should have a clean record and master class licence. It’s important to note the master class number determines how big of a ship the person can captain.

Materials your boat is made of

Boats are made from multiple materials. This contributes to the overall construction of the vessel. A boat can made of many materials that can range from wood to fibreglass. Depending on what your boat is made out of, your insurer may suggest additional forms of protection. The intent is to help pay for repair and replacement costs if something were to happen.

If your boat has safety features

Before you take your boat out on the water, you need to make sure it’s safe. By installing additional safety features such as GPS and fire suppression systems, you can ensure this is the case. These things keep you and your boat safe and can lower your insurance rates. If you choose to forego basic safety features on your commercial fishing vessel, you are risking the lives of you and your passengers.

If you come prepared with all the documents your insurance provider needs, you won’t have to worry about getting approved for an insurance policy. However, gathering all the information you need can be an overwhelming process. This can be made easy if you ask a BrokerLink broker for help. A broker will tell you what you need to provide to the insurance company, so you don’t have to worry about forgetting anything. Before you make this commitment, you might wonder how much insurance costs. We will explore the price of commercial vessel insurance further next.

How much does commercial fishing boat insurance cost?

In the marine market, having insurance is essential. It can help avoid potential damages as well as the price that comes with more severe consequences, such as accidental death. However, you might wonder about the price tag of this type of insurance coverage. While there isn’t a one-size-fits-all price for this type of insurance, there are factors that affect the price. Let’s explore them and learn about how each one can affect your insurance rates:

Age and condition of the vessel

Your boat plays the biggest role in how much your commercial fishing boat insurance costs. This is because older boats are more prone to mechanical problems and structural issues. In turn, your insurance company will see you running your fishing business on your boat as high-risk. However, if you maintain your boat or add safety features, you can lower your insurance premium.

The type of commercial fishing business you run

The nature of your commercial fishing business is a key part of how insurance companies calculate your rates. Your operating budget and how you fish make a difference because it's riskier to use a long line or to trawl than it is to use a traditional one. Additionally, if you run a large-scale business, you have more to lose than a small, independent operation, which increases your rates.

Where you fish

Your geographical area affects your commercial fishing insurance rates, and where you drive your car affects your auto insurance premium. Fishing in the ocean is considered more dangerous than fishing in a lake because once you venture off the coastline, the water is more unpredictable, and you are more vulnerable to inclement weather conditions. Geographic limits also exist — these restrict how far you can take your boat before losing coverage. Reach out to your insurance broker directly to confirm the limits present in your policy.

Experience level and safety measures

Even if you have a boat with people who have years of fishing experience, you shouldn’t skip out on crew coverage. With that said, a competent captain operating a commercial vessel can expect to pay less for insurance than a first-time boat owner who’s just starting their first business. If you add safety features to your vessel, such as GPS and suppression systems, you can also save money in the long run.

Your insurance premiums can fluctuate based on a number of factors. That’s why it’s important to call around and get quotes from multiple insurance companies. If you recently opened your commercial fishing business, this process might seem intimidating. However, if you use a broker like BrokerLink, you have someone to do the shopping around for you and walk you through the process. Next, we will discuss the advantages of commercial vessel insurance.

What are the advantages of commercial fishing vessel insurance?

Other than being able to counteract vessel operation property damage, there are many benefits to having the proper insurance coverage. Commercial fishing insurance is an effective way to mitigate the risk that you and your business face while out on the water. As the vessel captain, it’s up to you to protect your entire fleet and prevent the business from going under. Here are some of the reasons to purchase insurance coverage for your commercial vessel(s):

Protection from unforeseen circumstances

Fishing in a lake can be risky but not nearly as dangerous as fishing in an ocean. In the open water, you are more likely to encounter storms and high waves. There’s also a bigger chance of getting into a collision. Taking a risk could cost you more money than insurance does in the long run. Having the right coverage will give you peace of mind and more time to focus on what matters the most: your fishing business.

Continuing operations without disruption

Expenses incurred by damages can take a toll no matter what your fish business entails. You are losing money when you have to shut down your business temporarily because of a damaged boat or not having gear coverage. However, by purchasing insurance coverage, you can avoid this issue. There are policies that allow you to get new equipment instead of only receiving the depreciated value.

Fulfilling legal requirements

In Canada, there are several regulations regarding liability, employees, and pollution. Because of this, you have to ensure your fishing business complies with them. By working with an insurance broker and company, you can keep your boat and business up-to-code. The right insurance coverage will allow you to operate your business legally without the need to pay expensive fines. It doesn’t matter whether you’re on land or out on the water.

Keeps your business investment safe

Between vessels, electronics and gear, running a commercial fishing business is a major investment. If you aren’t properly protected, you risk losing everything you worked so hard for. The chances of losing your business without insurance are much higher than having to pay unreasonable premium prices. Insurance companies are regulated to ensure the costs are fair for everyone.

A commercial fishing vessel faces more risks than its recreational counterparts. That’s because there is money on the line, and when something happens to your boat or your gear, you are not generating revenue. It’s important to have preventative measures in place to counteract these issues. If you don’t, you risk losing your business or facing a significant financial loss. Do yourself a favour and let BrokerLink be your guide to choosing a commercial fishing boat policy that suits your budget and needs.

Contact BrokerLink to get your commercial fishing boat insurance policy today

Missing vessels and legal defence costs can add up if you let them. That’s why insuring your commercial fishing business is so important. If you don’t, you risk losing everything you worked so hard for, including the major investment of time and money. Starting your first business can be overwhelming, and it can be easy to miss out on the essentials, such as valuable liability coverage. You need this and other types of coverage to protect yourself and your commercial fishing vessel.

How do you find an insurance policy that suits your needs? How do you go about insuring a commercial fishing boat? Well, reaching out to a knowledgeable BrokerLink broker is a great place to start. Our team is dedicated to helping you find an insurance policy that suits your budget and needs. Call, use our free online quote tool or visit one of our 200+ community branches to get started today.

[phone]