GEICO Marine launched a 365-day charter policy for people who want to use their boats for something other than personal recreation—filling a gap for boat owners who charter their boats more frequently than most policies allow.
PRODUCT: Charter boat policy
COMPANY: GEICO Marine Insurance Company
BEST RATING: A+ (Superior)
AVAILABILITY: Coverage is available through independent agents and brokers.
FOCUS: GEICO Marine launched a 365-day charter policy for people who want to use their boats for something other than personal recreation.
“This product fills a gap for boat owners who charter their boats more frequently than most policies allow,” says Ed Holownia, assistant vice president of underwriting for GEICO Marine. “Most policies allow only a week or two. This allows you to do it full-time.”
The GEICO policy also provides other coverages, such as personal liability while a boat owner is not on their boat but is doing boat-related things such as angling professionally or in an amateur competition, or exhibiting at a workshop, trade show or dealer event—any activity that shows off fishing skills to attract attention or support a sponsor.
GEICO’s policy also covers liability and medical payments for clients while they are on docks, gangways and piers leading to the boat. “Most recreational boat policies say the guests have to be on the boat to be covered,” Holownia says.
Also, “if a boat has a claim and is out of service, this policy automatically covers the liability of the named insured while operating a rented boat,” Holownia points out. “Coverage for the cost to rent a replacement boat can be included by endorsement so the owner can continue to provide charter services.”
The policy also offers consequential damage coverage. “If there is a loss that would normally not be covered because of wear and tear or gradual deterioration, and the result is the sinking of the boat, this policy will cover the consequences of the sinking, such as water damage to the engine and the electrical systems,” Holownia says.
UNDERWRITING: GEICO will underwrite a boat with up to $1 million in hull value; protection and indemnity are available up to $2 million. The most common policy covers six passengers or less. The owner must either be a licensed captain or hire one during charters—no bareboat rentals. Vessels more than 20 years old must be surveyed before GEICO will bind coverage. Applicants must specify their purpose for using the boat. Waterskiing is allowed for private use but not for charter.
MINIMUM PREMIUM: $250 for inland waters and small boats. The average premium for boats chartered on the coast is $1,500-2,000, depending on the boat’s value, number of passengers and distance from shore.
TARGET: Boat owners who charter their vessels for fishing, scuba, sightseeing or dinner cruises. They must have prior boating experience, prior experience chartering and the appropriate U.S. Coast Guard or other chartering license.
COVERAGE TERRITORY: U.S. coastal and inland waters, with navigation available to the Bahamas as long as the charter begins and ends in the U.S.
CONTACT: Ed Holownia, assistant vice president of underwriting; GEICO Marine Insurance Company, 880 South Pickett Street, Alexandria, VA 22304; 877-580-2628, ext. 3.
Ronimarie Acord is an IA contributor.
