When it comes to charter and guide companies, they have a variety of unique insurance needs. Dealing with numerous customers and situations, not to mention being located in areas that may have their own hazards, all add up to having these businesses in need of different types of insurance. Whether it’s a company operating a charter boat service or a guide company providing tours on foot or on sea, here are the four most important reasons why these companies need insurance.
While the term “negligence” can encompass a large number of situations and actions, charter and guide companies realize they need insurance to protect them from these claims, which in some cases can run into millions of dollars. Because these situations can apply to passengers as well as crew members, it’s important to have adequate coverage to handle virtually any situation that takes place. For example, if a charter boat captain has his operator’s licensing called into question after an accident, insurance may be able to cover any damages that are determined to have been caused by his decisions. Along with this, issues involving drug testing or safety equipment can also fall under negligence claims, so having insurance to protect against these claims is crucial in order to stay in business.
Hull and Machinery
For many charter boats, damage sustained in an accident can sometimes be too expensive to overcome. For many business owners, they often discover they have insurance that is far too inadequate to cover their damages, which in some cases puts them out of business. To ensure this does not happen, hull and machinery coverage that is based on potential replacement value can solve this problem, according to Anchor Marine Underwriters Insurance. However, many companies choose not to offer this coverage, or offer it as such high prices that many companies cannot afford it as part of their insurance plans. However, the good news is that the coverage provided does cover the entire vessel in the event of fire, collision, or sinking, and also covers engines, deck machinery, and various electronics.
For many guide companies, one of the most potentially hazardous situations they face is when they lead travelers on an excursion through woodlands or other areas. To be sure they cannot be held liable in case one of their customers gets hurt during the journey, excursion insurance should be part of their business insurance package. While this may sound as if it is optional insurance, the fact is numerous government agencies require businesses to have this coverage in order to do business. The U.S. Forest Service, U.S. Fish and Wildlife Service, and Alaska State Parks System are just some of the state and federal agencies requiring this special insurance.
Whether it’s a charter boat company or a guide company, there are situations where crew members and travelers strap on the scuba gear and dive into the surrounding waters. Needless to say, this can open up a variety of potentially problematic events that can happen, including equipment malfunction, drowning, or instructor liability. In these cases, it’s important to have insurance coverage that will pay for any accidents that may happen. However, when buying this type of coverage, many business owners fail to realize that standard vessel insurance does not cover people in the water, so it’s vital that businesses make it clear they want this specific type of insurance included in their policy. One of the biggest advantages of this type of insurance is that it covers medical payments incurred by travelers, which in many cases can appease them enough to keep them from seeking a large settlement.
For those charter and guide companies that find themselves in need of insurance, the fact is they need to do an extensive amount of research when deciding which types of coverage they need. By doing their homework before meeting with an insurance agent, they should be able to know what they need and how much it will cost. If this is done, these companies should find themselves in business for many years to come.