A charter boat is a vessel that can be used for a fee for the purpose of fishing for food fish or shellfish for personal consumption and is also used for bringing the same into state ports.
Boat owners who occasionally charter their boats and full-time charter businesses are required to insure their vessels. The type of policy determines the coverage options and may include physical damage, uninsured boaters’ coverage, towing and assistance coverage, captain and crew liability, and medical payment coverage. Charter businesses such as boat excursions, fishing guides, sightseeing, day cruises, etc can avail charter boat insurance.
It is important that charter boats be insured as they are used more often than recreational boats, also the boat owner who charters his boat would not like take financial responsibility for another person’s actions. Although, standard boat and yacht insurance provides charter insurance, it is not as extensive as charter boat insurance. The rates of charter boat insurance are usually higher than those of standard boat insurance.
Types of charter boat coverage include the following:
- Part Time Charter Coverage: This policy allows charter for a certain number of days in the year. Paid crew can be added to gain income tax advantages.
- Full Time Charter Coverage: This coverage is for up to 365 days in a year and includes day trips, weekly charters, and extended charters. These policies allow the addition of paid professional crew.
- Six-Pack Charters: These charters allow up to 6 six guests aboard and are meant for smaller vessels. The U.S Coast Guard does not allow more than 6 guests on board non-certified vessels that are chartered.
- Jones Act/Paid Crew: As per the Jones Act, paid crew-mates aboard private and commercial yachts, who bait hooks, are required to add liability coverage to the policy.
- Coast Guard Certified Vessels: Vessels that carry more than 6 passengers need to obtain certification from the US Coast Guard. These vessels have several safety features and in most cases can have up to 49 passengers and 3 crew members.
- Bareboat Charters: Bareboat Charter coverage is for vessels that are chartered to a non-owner and no paid captain or operator is provided by the owner.
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