Owning a boat comes with a quite a bit of responsibility. There is the care of the boat so that it is safe for water travel, because you shouldn’t invite people aboard your craft if it not safe for traveling on open waters. Generally speaking, your Newport beach boat insurance policy is written to provide a private pleasure use warranty and will cover you for incidents related to such use.
If you, as the owner, allows the boat to be chartered, your carrier will need to be notified in advance (and in writing), so the carrier can issue a special endorsement. If you fail to do so, any charter, lease or commercial use won’t be covered under your insurance policy. The policy provided probably considers entertaining business clients or participating in a fishing tournament to be for commercial purposes.
Loaning out your vessel
You may decide at some point to loan your boat to a friend, and that’s perfectly fine to do. The boat is covered under the boat policy any time that it’s used with the owner’s permission, so therefore the policy allows for this. The definition of named insured or an insured person usually covers the boat owner, anyone using boat with the owner’s permission, or a paid captain and crew if crew coverage has been added. Some carriers have a minimum age limit for boat operators in their policies so make sure to only allow those of legal age to drive the watercraft.
Boat policies also require territorial limits of coverage, and the policy should include a warranty of navigation. This means that the boat owner agrees, as part of the insurance contract, to stay within a certain geographical area with the boat. For example, you may decide to go to a point south of San Diego, Ca. even though your policy doesn’t cover areas that far south. If your boat winds up experiencing damage, and even though the damage is not subject to exclusion, you won’t be covered because you’ve breached the warranty of navigation.
This type of situation happens rather often because people don’t read their policy carefully enough. When you get ready to purchase Newport beach boat insurance make sure you visit your agent to help determine the right type of coverage for your needs.