Boatyards work with their clients to repair and service their boats, store them in the winter and launch them in the summer. The general liability exposure is similar to that of an automobile repair operation with the added exposure of clients operating on the water. Some boatyards provide facilities for winter storage or moorage that increases the bailee exposure.
What is Boatyards, Boat Repair and Boat Servicing Insurance?
This type of insurance is designed to protect boatyards, marine repair shops, and related service providers from financial loss due to accidents, property damage, or liability claims. These operations involve a mix of property coverage for equipment and facilities, commercial liability for third-party injuries, and sometimes commercial auto exposure if transport services are offered.
Who Needs It
Operators of boatyards, marine repair technicians, and boat service contractors typically need this coverage. It’s also essential for businesses involved in seasonal boat storage, refitting, and maintenance. Even small, independent repair shops can face serious risks without adequate protection.
What It Typically Covers
Coverage may include:
- General liability – for bodily injury or property damage to third parties
- Property coverage – for buildings, workshops, and tools
- Bailee’s coverage – protects customer boats in the care of the facility
- Equipment breakdown – for key machinery used in repairs and storage
- Commercial auto – if vehicles are used for towing or transport
For example, if a customer's boat is damaged while stored in the yard over winter, bailee coverage could respond to the claim.
Common Exclusions or Limitations
Typical exclusions may include wear and tear, intentional damage, and certain environmental or pollution-related claims. Marine operations may also face exclusions tied to offshore work or damage caused by improper maintenance practices.
Factors That Influence Cost
Several underwriting factors determine premium costs, such as:
- Size and location of the boatyard
- Volume of boats serviced or stored annually
- Types of services offered (e.g., welding, electrical systems, hull repairs)
- Claims history and safety practices
Proof of Insurance & Compliance
Many marinas, harbors, and commercial clients require proof of insurance before allowing operations on-site. Having appropriate coverage also helps meet contractual and licensing requirements in some jurisdictions, though specifics vary by state.
How to Get a Quote
To get started, gather details about your operations, including annual revenue, services offered, and number of employees. Our licensed agents can help assess your coverage needs and connect you with carriers that specialize in marine-related risks.
Request a boatyard insurance quote today.
To explore similar coverage types for marine businesses, see our options for Boat Manufacturers, Builders & Repairers Insurance or learn more about Boathouse and Houseboat Insurance.
Frequently Asked Questions
What types of incidents does boatyard insurance typically cover?
It generally covers third-party injuries, property damage, damage to customer boats in your care, and damage to your own facilities or equipment.
Is bailee coverage included automatically?
No, bailee coverage is often a separate endorsement. Be sure to confirm it’s included if you store or work on clients' boats.
Do I need coverage if I only offer seasonal boat storage?
Yes. Even temporary storage exposes your business to liability if a customer's boat is damaged while in your care.
Are subcontractors covered under my policy?
Usually not. Subcontractors typically need their own coverage, but you can require proof of insurance before hiring them.
Can I get coverage for pollution or environmental claims?
Pollution liability is often excluded but may be available as an add-on. Speak with an agent for options based on your operations.
Still have questions? Talk to a local insurance expert.