How to insure a commercial fishing boat

With $7.6 billion in exports in 2023, Canada is the fifth-largest exporter of fish and shellfish in the world, employing approximately 15,000 Canadians from coast to coast. The commercial fishing industry is one of Canada’s most essential sectors, but also one with the highest risks. According to TSB Watchlist, Canada recorded 143 fatalities from 93 commercial fishing accidents between 2010 and 2025.

From crew injuries and sudden storms to equipment failures, these are just some of the risk exposures commercial fishermen and women face. This guide explains what your commercial fishing boat insurance should cover, what information insurance companies seek, how premiums work and easy-to-follow steps to lower costs while staying compliant and safe out on the water.

Who this guide is for

This comprehensive guide is designed for commercial boat owners and operators in Canada, from inshore lobster boats to crab and shellfish fleets, tenders, offshore ground fish vessels and those used for mixed operations. This guide can also be useful for those with vessels who offer wildlife tours during part of the year. Key takeaways:

• Core coverage options: Hull insurance and protection and indemnity (P&I).

• Insurance premiums are determined by vessel type and size, area of operation, seasons, claims history, surveys and more.

• For faster quotes: Have an updated survey, fishing licenses, trading limits and crew roster ready.

What is commercial fishing boat insurance and why it matters

Commercial fishing boat insurance is designed to protect those working in the commercial fishing industry. It features a bundle of various policies depending on your needs, but typically includes two core components:

• Hull and machinery insurance (H&M): Protects your vessel, including the hull, engines, electronics and wheelhouse against collisions, grounding, storms and fires.

• Protection and indemnity (P&I): Covers you against liabilities for third-party injuries or property damage, wreck removal, crew injuries and pollution incidents.

According to the Transportation Safety Board (TSB), Canadian fishing safety remains a national concern due to systemic risks. That’s why having coverage matters. Beyond this, proper insurance coverage will:

• Ensure you can operate in compliance with industry regulations

• Protect your balance sheet

• Offer financial protection and safeguard your interests

• Meet lender and wharfage requirements

Insurance policies for your commercial fishing business

Here’s a closer look at what marine insurance looks like:

Not sure what commercial fishing insurance you need? Book a call with a BrokerLink advisor to learn more about each commercial boat insurance policy above.

Underwriting commercial marine insurance: what insurance companies ask and why

When it comes to purchasing fishing vessel insurance policies in Canada, your insurance provider will ask you a series of questions about your vessel, operations, crew and risk management controls to determine your premiums and coverage terms including:

Vessel details

Your insurance company will need the following details to be able to provide you with an accurate quote:

• Make, year and length.

• Gross tonnage.

• Vessel hull material (fibreglass, wood, aluminum or steel).

• Engine type and horsepower.

• Fuel type.

• Safety features.

• Any modifications.

Fishing industry operations

You will be asked to provide details on the commute and use of your boat:

• Home port.

• Navigational limits (inshore or offshore).

• Seasonal fishing boat schedules.

• Target wildlife species caught.

• Typical trip duration.

Crew

Your insurance company will request the following:

• Master credentials.

• Crew count and experience.

• Safety training (life jacket use, man-overboard drills, emergency response knowledge, etc.).

Risk controls

Is your boat well equipped with:

• Radar.

• Bilge and high-water alarm systems.

• Fire fighting systems.

• Documented maintenance logs.

• Safety features, technology and equipment (EPIRB/PLB, VHF with DSC, AIS).

Operational history of commercial ship and vessel owner

Your insurance provider may also ask about:

• Past 5 years of losses.

• Survey status.

• Liens or financing.

Navigational limits, licenses and compliance

Commercial fishing vessel insurance policies in Canada are closely related to your DFO license conditions. These conditions define the who, what, where, when and how of your commercial fishing business operations. Key considerations for commercial fishing insurance include:

• Navigational limits: Most commercial fishing vessel insurance will not exceed the fishing areas or seasons of operation specified in your DFO fishing license.

• Passenger carriage: If your commercial vessel carries passengers, you will automatically need to purchase passenger liability insurance.

• Compliance checklist: You must ensure that all vessel documents, master credentials, safety equipment and pollution reporting are up-to-date.

Fishing vessel safety regulations (FVSR) and inspections

In Canada, commercial fishing boats must meet certain safety and inspection requirements based on how big they are:

1. Small fishing vessels: Less than or equal to 24.4 metres in length and 150 gross tonnage are regulated by Transport Canada’s FVSR. These regulations specify mandatory safety equipment, stability requirements, operating procedures and crew training standards to reduce potential risks.

2. Vessels between 15 and 150 gross tonnage: Required to undergo inspections and certifications by Transport Canada. This ensures that the boats themselves meet certain structural, safety and operational standards.

3. Larger fishing boats (over 24.4 metres or 150 gross tonnage): Regulated under the Large Fishing Vessel Inspection Regulations. These cover life-saving standards, firefighting equipment, navigational tools and crew safety requirements.

As the boats themselves get larger, the inspection and regulator requirements become stricter and more comprehensive.

Risk management

Effective risk management is key to keeping your crew safe and your commercial fishing insurance premiums low. Let's take a look:

Weather and operations

Always prepare well beforehand. You should:

• Plan your routes ahead of time and maintain a place of refuge contingency plan.

• Follow mooring standards and storm contingency plans.

Crew safety

To ensure crew safety, you should:

• Provide personal protection equipment (PPE) for all crew members.

• Manage fatigue and enforce safe cold-water protocols.

• Train your crew in first aid and CPR (Cardiopulmonary Resuscitation).

Technology and equipment

It's worth having the following on board:

• Use AIS (Automatic Identification System) and DSC (Digital Selective Calling) for navigation and tracking.

• Install high-water level alarms and engine cutoff lanyards.

• Ensure thermal protective gear is available for all crew members.

Gear and documents

The following can keep you prepared in case of an emergency:

• Manage trap lines, knives and deck housekeeping.

• Implement lockout procedures for winches.

• Maintain a written Safety Management System with checklists, drills and logs.

How much fishing vessel insurance coverage costs and how to reduce rates

Marine insurance coverage premiums depend on multiple factors:

• Vessel value, engine horsepower and construction materials

• Fishing area, season of operation and type of catch

• Past claims, deductible amounts and security measures on board

• Updated survey recommendations

You can decrease the cost of your insurance. Take a look:

Proper insurance coverage and reduced costs: how to save money

Here are some ways you can save money on your insurance:

• Switch to seasonal lay-up boat insurance endorsements for the off-season

• Enrol in an accredited safety training course and maintain a documented safety program

• Ask about discounts, you may qualify for savings on your insurance policies

• Opt for a higher deductible amount

Documents to gather for a fast fishing vessel insurance quote

Here's what you should have on hand:

• Recent survey and inspection reports with photos

• Processor or wharfage contracts with insurance clauses

• Maintenance logs and safety plan

• Losses from the past five years

• Species you fish for

• Stated value or agreed value for the commercial vessel

• Vessel ownership papers and master credentials

• Crew roster and experience levels

• Seasonal fishing schedule

Claims: What happens and how commercial fishing vessel insurance responds

Should an incident occur, you need to follow these steps:

1. Protect life and stabilize the situation

2. Notify authorities

3. Record the time and position

4. Take photos and videos, record witness names and invoices

5. Contact your insurance provider and start your claim

Let's take a look at how this can affect your insurance:

How coverage options respond

Each coverage option plays a different role. Take a look:

• Gear coverage: You pay a deductible to your insurance company and they reimburse you for the loss.

• Collision or grounding: Hull and machinery insurance covers your commercial vessel and protection and indemnity handles third-party damage.

• Crew coverage: Covers medical costs and other expenses incurred.

How to get the right insurance coverage for your commercial fishing vessels and business

To insure fishing vessels used for commercial purposes:

1. Discovery call: Discuss vessel details, operations, unique risks and coverage needs.

2. Submit documentation: Provide surveys, maintenance logs and fishing business contracts.

3. Market placement: Broker approaches multiple carriers or Lloyd’s facilities.

4. Compare quotes: Review your coverage limits, deductibles, inclusions and exclusions.

5. Get commercial marine insurance: Your fishing business is now covered by a customized commercial fishing insurance policy.

Contact BrokerLink today

For more information about insurance for a commercial fishing vessel, contact a BrokerLink advisor today. The team has and continues to help captains successfully set sail by finding the right insurance coverage.

FAQs on commercial fishing boats

Will gear and traps be covered off-vessel?

It will depend on your gear coverage. Speak with your insurance provider or broker for more information.

Do I need passenger liability coverage for seasonal tours?

Yes, if your commercial vessel carries paying passengers, you will need passenger liability insurance.

Do I need a new survey to increase vessel value?

Yes. A current survey can help insurers assess risk and adjust your coverage or limits accurately.

If you have any questions, contact one of our local branches.