Beware of Insurance Risks

The peer-to-peer sharing economy has recently hit the boating world, with the advent of Boatbound and Boatsetter, companies that help owners rent their boats to others. Other ways to share your boat are also cropping up, such as through Airbnb.com as a sort of floating hotel room. All of these programs offer a way to earn some money to offset maintenance and slip fees, but they are not without their risks.

If you’re thinking about renting your boat through one of these programs, be aware that nearly all recreational marine insurance policies, including BoatUS Marine Insurance, do not cover the boat during a rental period; that is considered to be commercial use that falls outside of a recreational boat policy.

Some insurance companies will not cover you and your boat at all if you participate in these programs, while others may just suspend the coverage during the rental period; make sure you have that conversation with your insurance company before signing up. If something happens to your boat, or worse, someone is injured on your boat, you may not have coverage under your personal recreational boat policy. The insurance provided through the peer-to-peer program really matters, then, if you and your boat are to be protected.

Make sure you understand what the insurance covers — and what it doesn’t — before deciding to list your boat in one of these programs. While Boatbound and Boatsetter both offer insurance options that cover the rental period (and the Boatbound rental insurance is provided by GEICO Marine Insurance through BoatUS), the provisions may be quite different than your normal policy. Airbnb provides a Host Protection program that includes liability coverage; still, you should carefully review the program coverage to ensure it will cover your boat as well as it would a land-based residence.

If you want to rent your boat on a regular basis — even just as sleeping quarters — consider purchasing a commercial charter policy that covers your boat for this kind of use.

Source: Seaworthy/BoatUS.com