Commercial Boat Insurance

For those who may have a maritime related business you know that commercial boat insurance is a necessity.  In addition, for you business to stay a float (pun intended) you need to find commercial boat insurance that is the best bang for your buck.

Commercial boat insurance is not different than commercial auto insurance, or any other type of commercial insurance out there.  To put it simply, commercial insurance is for commercial use or business use.  This means that commercial boat insurance is boat insurance intended for business – think ferry services or shipping for example.  So, if you or someone you know owns or operates a boating related business make sure that they have some sort of insurance to help reduce out of pocket expenses in case an accident occurs.

Commercial Boat Insurance

Many people say, why get a commercial boat insurance, when I can get personal boast insurance for a little bit less money.  One major reason is because of tax, and liability reasons.  Let me first explain the tax implications when it comes to commercial boat insurance.  If you run a business you want your expenses in order, each expense you have will deduct from your overall income, and thus you will pay less in taxes.  If you had placed your boat insurance as commercial you can use that premium expense to be tax deductible, and in the end that tax deduction might be more than the individual boat insurance savings.  The other reason of buying commercial boat insurance over personal boat insurance for you business is liability.  If something happens to your company’s boat than under commercial boat insurance your company would be liability not your personal assets.

Commercial boat insurance does have its drawback though.  Even though commercial boat insurance is tax deductible and less liable to you personally it does have many cons.  For one commercial boat insurance might be a lot more expensive than the tax deduction you are saving from getting a business boat insurance.  Secondly, commercial boat insurance does not allow the same type of flexibility as with regular boat insurance.  This means that if you wanted to change your commercial boat insurance plan it would be much more difficult than a regular boat insurance plan.

Remember that a business should be a business and treated with care.  The best entrepreneurs and business people always say never mix business with your personal life, and always make business you pleasure.  This means stay on top of your finances and have great commercial boat insurance.