Commercial boat insurance

Commercial boat insurance, or commercial hull insurance, is a business insurance policy designed to cover Australian maritime vessels used in commercial activities financially. It provides specialised insurance coverage for ships operating in the marine industry, allowing business owners peace of mind when running their operations.

Unlike recreational boat insurance, commercial boat insurance policies cover a broader range of risks encountered by working vessels, such as protection against loss of income, third-party liabilities, pollution cleanup costs and machinery breakdowns.

Every business is different, and insurance providers typically offer flexible and customisable packages to ensure coverage matches the specific needs, watercraft and financial situations of each business. Commercial marine policies can be tailored to different types of operations, including:

• Commercial fishing boats
• Passenger ferries
• Charter and tourism vessels
• Workboats and tugboats
• Cargo ships and transport vessels.

Boat insurance policies can vary depending on the type of policy and the specific insurer, but you can tailor your commercial vessel insurance policy to your business’ unique needs.

Coverage options for commercial boat insurance typically offer cover for the following marine liabilities:

• Accidental damage: Covers loss or damage to the vessel caused by collisions, groundings, fires, storms or sinking.
• Passenger liability: Cover passengers for injuries sustained onboard and may cover damage to passengers’ belongings in an insured event.
• Theft: Insures against theft of the vessel or its related equipment.
• Public liability cover: Covers legal liability for property damage or injury to third parties resulting from your operations.
• Pollution liability: Covers costs related to accidental pollution events, such as fuel spills.

Optional and specialised covers:

• Business interruption: Compensation for loss of income due to vessel downtime following an insured event.
• Cargo insurance: Compensation for loss or damage to goods transported on the vessel.
• Charterers’ liability: For charter boats rented out to third parties.
• Crew cover: Workers’ compensation or personal accident coverage for crew members.

Commercial boat insurance tends to be more expensive than insurance for recreational vessels because it covers the higher risks involved in business operations on the water.

Premiums for commercial vessels can vary widely depending on several factors, including:

• Type of vessel: Passenger-carrying vessels (e.g. ferries or tour boats) usually attract higher premiums than cargo-only vessels, as they also need to cover the passengers on board in case of an insured event.
• Operational area: Boats operating far offshore or in more hazardous waters may pay higher premiums.
• Value and size: Larger, higher-value vessels naturally cost more to insure due to their higher repair and replacement costs.
• Business activities: High-risk activities, like offshore fishing or heavy cargo transport, lead to higher premiums.
• Crew and passenger numbers: More people onboard mean more potential liabilities.

Since every commercial vessel and business is different, premiums are determined case-by-case, so it’s a good idea to compare quotes from various insurers. You can also work with an experienced marine insurance broker or insurer to create a policy that can cover your insurance needs while managing the cost effectively.

Read the policy wording in the Product Disclosure Statement (PDS) and the Target Market Determination (TMD) to know the inclusions and exclusions of your policy, and that the policy is a right fit for you.

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