Charter Boat Insurance

Set sail with coverage that meets your needs.

Charter boats are an excellent source of income for many boat owners and a great deal of fun for people looking to get out on the water and explore. Owning a charter boat comes with risks, however, so having the right coverage can keep your pockets secure in case of an emergency.

Get Your Charter Boat Insurance Quote

Types of Charter Boats We Insure

At Wallace Welch & Willingham, we insure two types of charter boats: owner-operated six-passenger charters and six-passenger charters with a hired captain. These boats are not required to be U.S. Coast Guard certified. The charter policy states the maximum number of charter passengers and crew that the underwriters agree to.

Fishing & Sightseeing Charters

Fishing charters take customers offshore for an elevated angling experience. Fishing boats often venture 50 miles or more into open water, which increases exposure to rogue weather and equipment failure. Sightseeing charters stick to shallower, calmer waters, focusing on rest and relaxation. Fishing guides and tour operators both require distinct types of coverage to address their specific exposures.

Yacht Charter Insurance

For operators of high-end vessels, yacht charter insurance addresses the unique valuation of luxury experiences. We connect you with premier marine underwriters to ensure your high-value asset is fully protected against damage and liability claims.

>> Thinking of scaling your fleet? We make it easy to transition into broader commercial marine insurance. We structure comprehensive programs that protect multiple vessels, marinas, and related marine business operations from catastrophic financial loss.

Requirements for Insuring Your Charter Boat

There are two important aspects to charter boat insurance coverage: protection & indemnity coverage, and hull & machinery coverage.

Protection & Indemnity Coverage

Watercraft Liability (sometimes listed as Protection & Indemnity) is 3rd party Bodily Injury (BI) and Property Damage (PD) liability coverage that comes into play when the insured vessel is involved in a boating accident during which a covered operator is at fault.

  • BI coverage pays for medical costs incurred from bodily injury, lost wages, sickness, or death related to the accident. This coverage also pays for legal fees and recompense for pain and suffering that may result from the accident. BI responds if you’re found negligent for bodily injury to others.
  • PD coverage pays for damage to other boats, property, and structures. PD responds if you’re found negligent for damage to the property of others.

Crew Coverage and the Jones Act

As a boat owner, it’s your responsibility to take care of the people who work for you as captain or crew. Should an injury occur during their duties, ask yourself: are they covered?

Adding crew coverage protects you, as the vessel owner, if they bring a lawsuit for a crew claim. This coverage is usually a separate endorsement to your charter policy, and an additional premium is generally charged based on the total number of crew members. Always refrain from hiring crew unless this important coverage is purchased.

Crew members injured as a result of negligence are able to recover damages through a federal statute called the Jones Act. If you employ captains, mates, deckhands, or other onboard staff, we recommend a review of Jones Act exposures with one of our marine insurance advisors to ensure you have the coverage you need to protect the vessel owner and the injured crew.

Hull & Machinery Coverage

Hull & Machinery coverage helps pay for the repairs to your boat in the event of a covered loss. It may cover sudden and accidental damage caused by the following:

  • Damage from a weather event
  • Collision – damage to your vessel
  • Theft
  • Vandalism
  • Engine damage
  • Navigation equipment damage

Your policy will define policy coverage, terms, and conditions. Also, refer to the policy for a list of exclusions that will apply to hull and machinery claims.

Our marine insurance advisors will use their experience and knowledge to assist you in weighing the cost of coverage against the potential risks when selecting the policy best suited to the unique insurance needs of your charter.

Find out if you have the right quantity and quality of charter boat insurance.

Request a Quote

Considerations for Insuring Your Charter Boat

Whether you run your charter boat operations part-time or year-round, our marine insurance advisors offer versatile charter boat insurance coverage options at the most affordable rates available.

Part-time charter boat coverage: Owner operated part-time charter operations may request an insurance coverage plan with endorsements that allow a set number of charter ventures per year.

Full-time charter boat coverage: W3 also caters to vessel owners seeking a charter boat insurance policy for daily charter operations, including coverage options for crew members.

Part-time and full-time operators often need different types of coverage. For example:

  • An owner operated captain running local harbor cruises may focus fewer than 6 passengers and incidental charter operation, but still need increased liability limits.
  • A year-round offshore operator may need broader navigation limits, higher limits and crew coverage. 
  • A guide-led operation may want to consider higher liability and coverage tailored to fishing guides to include fishing gear coverage and tournament-related activities.

>> Looking for comprehensive coverage? Explore our private client services for complex portfolios.

Charter Boat Insurance Coverage Options

Your charter charter boat insurance coverage options may include:

  • Physical Damage (Agreed Value)
  • Protection and Indemnity Liability & Pollution Coverage
  • Professional Angler Liability
  • Medical Payments Coverage up to $25,000 for clients/passengers
  • Personal Property & Fishing Tackle Coverage up to $5,000
  • Towing/Emergency Services up to $2,500
  • Tournament Costs Coverage
  • Navigation Limits based on usage
  • Trailer Coverage
  • Optional Coverage for Your Crew

Standard Coverages for Charter Boat Insurance

A charter boat insurance policy can cover:

  • Damages to your vessel subject to the charter policy provisions
  • Liability coverage in the event someone sustains an injury while onboard
  • Reimbursements for medical fees for you or anyone aboard who needs to seek medical care
  • Towing coverage in the event of a breakdown that leaves you or those aboard your boat stranded and unable to seek assistance otherwise

These protections can provide meaningful peace of mind for boat owners operating for hire.

How Much Is Insurance for a Charter Fishing Boat?

There’s no single answer to how much it costs to insure a charter business. How much you spend on charter boat insurance costs depends on your business needs, the size of your boat, as well as how often you plan to charter trips and the number of crew.

More specifically, the cost of charter boat insurance may be influenced by:

  • Vessel value and whether coverage is written on an agreed value basis
  • The type of vessel, including whether it’s a smaller fishing boat or a premium yacht
  • The kind of trips you run, such as fishing charters, sightseeing, excursions
  • Passenger count
  • Crew count and Jones Act exposure
  • Navigation territory, including coastal use in Florida
  • Requested coverage options
  • Claims history
  • Chosen deductible
  • Extra endorsements like fishing gear coverage, or crew protection

If you’re comparing policies, it helps to review both the premium and the protection. The least expensive option isn’t always the one that best addresses your insurance needs. Speak to our marine insurance advisors to review coverage limit options.

Luxury Yachts with Charter

Some luxury yacht policies include charter with their approved captain in command of the vessel during the charter trip. This type charter may have voyage plans from several days to a week at a time. A luxury charter may require:

  • Higher liability limits
  • Broader passenger protections
  • Specialized insurance coverage for furnishings and onboard amenities
  • Coverage considerations for extended cruising or premium itineraries
  • Careful review by experienced marine underwriters

If your operation includes upscale guest experiences, private celebrations, or complex scheduling, talk with a marine insurance advisor to determine whether your current insurance policy aligns with your actual exposure.

Make Sure You Have the Right Insurance Coverage for Your Charter Boat

With a customized protection plan from W3 Insurance, you can focus on exceptional water journeys without worrying. At Wallace Welch & Willingham, we provide both the highest level of customer service and affordable charter boat insurance rates. Our experienced advisors provide tailored insurance to protect your vessel, crew, and passengers. 

Request a Charter Boat Insurance Quote