What is the difference between pleasure boat and charter boat coverage?
The main distinction between pleasure boat insurance and charter boat coverage is that the pleasure boat insurance policy contains a warranty and an exclusion prohibiting the vessel to be used for any commercial purpose which would include charter. If a boat was chartered and the insurance coverage was written on a pleasure boat insurance policy and there was a physical damage claim or liability claim, the insurance company would have grounds to deny any and all coverage. It is crucial for the boat owner/insured to disclose that the boat will be used for any commercial purpose. The insurance company will then determine if they are willing to insure that exposure and at what additional premium. Although the policies for pleasure boats and charter boats may be identical in wording, larger charter operations may require additional coverages not normally included in pleasure boat insurance. For instance, if food or drink is served or sold on board, there could be liability against the boat
