Insurance - Question For Captains

[Nimrod]

I am interested to hear from the licensed captains out there as to how much and what kind of insurance they recommend a captain for hire should carry. Any particular carriers/companies to work with? Are you generally asked for proof of insurance?

Thanks in advance for the input!

[OUTCAST1]

I am interested to hear from the licensed captains out there as to how much and what kind of insurance they recommend a captain for hire should carry. Any particular carriers/companies to work with? Are you generally asked for proof of insurance?

Thanks in advance for the input!

I haven't been asked for proof of personal insurance, and dont carry any, although it's probably a good (if expensive) idea, especially if you routinely do "day work". I've done some deliveries where the owner was asked to sign a release of liability for the captain (except in cases of grossly irresponsible/incompetent actions-who knows where that might come down?)

Typically, the boat is insured, and the insurance companies regard a licensed captain as a safer operator than an unlicensed owner. On the bigger private boats, the insurance companies are pushing the owners to have a licensed captain on board by offering sizable discounts on the premiums.

[Randy@BayMarine]

Hi guys,

Just a couple of points, Most Marine Insurance companies who insure Private Pleasure boats, allow "incidental" use of a paid captain. This means for a prescribed amount of days, certain exsposures... i.e. Trip delivery, new harbors or waters ( Bahama's) There is automatic coverage when you hire for a tourny or to move a boat for a storm warning etc.

Where you are in need, if you are hired to run a charter boat, if you enter into a written contract with someone, if you hang a shingle as a captain for hire as your primary business. there are some grey areas... You as the Hired Captain can and should request a certificate of insurance from the vessel owner's insurance to show proof of P&I for capt & crew.

If you own your own and hire her out, There are some companies who will allow for up to a certain # of charters. These must be logged and if a claim occures the company has the right to demand the log.. if you are over the # ... They can decline coverage. Now the guy who has his boat in a business name and takes client/friends out.. some insurance companies recognizes $$$ changing hands as a charter... here is where it turns grey, a lot of companies do not consider that a charter, when it is for Tax purposes...
What they do see as charters, Advertising as and running frequent trips with paying customers where you are making a profit(no laughing here charter guys) if this is your primary class of work, if you do this you can be considered a commercial risk and not be covered.

[captcl]

This is one of the things that worries my wife most about me chartering.
The seminars I've been to all recommended being inc., or LLC if you own and operate your own rig. I would think there would be some personal liability coverage you could carry on yourself(as a for hire Capt.) but it would be more in the form of a bond ie., liscensed&bonded. I was inc. with my big boat up on the ches bay and will never go thru that process again! But, as my better half keeps telling me you don't really know what a charter customer is thinking unless you have had them on the book for a long time! The USCG says you are responsible for your crew and vessel when on the high seas. The court system may see it differently at the dock or ramp. Maybe Capt. Franky Pettilona will kick in here, I'm sure he has some valuable experience on the subject.