Commercial fishers insurance

How does where you fish affect the costs of fishing boat insurance?

Not everyone fishes in the same waters. Depending on where you live, you’ll fish in either freshwater or saltwater depending on what you wish to catch. If you’re a competent captain, you can properly run a vessel no matter where you are. Despite this, whether you own a business or fish for pleasure, you are taking a risk when you go out on your boat. Because of this, your insurance rates will vary. This is what you need to know about insurance coverage when you’re fishing in each place:

Fishing in a lake (freshwater)

When you go fishing in a lake or a fresh body of water, your boat doesn’t need to be as big. Because of this, there are fewer sea perils, and your risk of losing a major investment is much lower. This isn’t to say that insurance coverage is unnecessary, though.

If you fish in freshwater, you should still opt for a comprehensive fishing boat policy. This protects you from having to pay for physical damage to your boat and liability claims. Lakes are usually closer to towns and cities, increasing the risk of theft and vandalism. If you have coverage, you won’t have to worry about the financial losses that come with these scenarios.

Canadian winters can be brutal. That’s why you should also consider purchasing winterization coverage if you live in an area where lakes freeze over. It will protect your boat from damage during the off-season. Seasonal boat insurance is another helpful.

Fishing in an ocean (saltwater)

If you live on the coast, you are likely to go fishing in the ocean. Oftentimes, the marine market is much better in these areas and owning a commercial fishing vessel is much more common. However, the risks increase when you bring your boat out on the ocean. Rough waters, storms and saltwater corrosion are some of the things you should worry about.

When you reach out to your insurance company, you might find the prices for insuring your boat are a bit higher if you fish in the ocean. This is because there are more chances of damage. If you buy a policy that specific risks apply to ocean-bound boats, you can be protected from saltwater corrosion and additional liability coverage.

Fishing vessels that make their way out onto the open waters of the ocean are vulnerable to the effects of inclement weather. If you live in an area that frequently falls victim to hurricanes and other forms of severe weather, ensure your insurance policy covers storm damage.

Similar to other insurance policies, fishing boat insurance for those who fish in the ocean has limits. In most cases, they have something called navigational limits. Basically, this means your insurance company will only cover your boat in certain geographic areas. In other words, if you venture too far from the shore, you may have to pay for any damages out of pocket.

What other factors affect the price of fisherman insurance?

Vessel operation property damage can occur at any time. It doesn’t matter where you are, but outside of where you fish, many other factors affect the costs of this type of marine insurance. There are several aspects that your insurance company will take into account when calculating the price of your premiums. What are they, and how do they affect your insurance rates? It’s time to find out more about the costs of fisherman insurance:

Type and size of your fishing vessel

The type of boat you have and how big it is have a lasting impact on your insurance rates. That’s because larger vessels that carry expensive equipment increase the risks of you making a claim. In turn, this will cause your insurance company to pay out more if something happens. If your business uses an entire fleet of boats, you should also be prepared to pay more.

Age and condition of your fishing boat

Again, the boat you use has a significant impact on your insurance rates. This is because if your boat is older, there is an increased chance of mechanical failures and structural issues. In contrast, newer boats often have built-in safety features. However, if you have an older boat, regular maintenance can keep it safe and running for years to come.

The way you fish

No two fishermen use the same method. Some reel in the fish with an old-fashioned rod, while others prefer longlining or trawling. The latter carries a higher risk than its counterparts. This is due to the attempt to pull in many fish at once rather than one at a time. Because of this, you have to pay higher insurance rates to ensure you, your boat and your equipment are protected.

Level of experience and additional safety measures

If you are an experienced vessel captain with years of fishing experience, expect to pay less for insurance. In contrast, if you are a first-time boat owner, you will pay more.

If you own a boat, you probably know that there are standard boat safety requirements. However, you might know that you can also save money by adding safety features to your boat, such as GPS tracking systems, fire suppression systems and safety training programs. If you opt out of these things, you might not be properly protected and put yourself and other boats at risk.

Past claims

Like other types of insurance, your past claims come into play when determining your premiums. This is because expenses incurred by your past insurance company will tell your current one that you’re more likely to make a claim. In turn, you increase your risk level, and by doing this, your rates will go up to compensate for it. This is another reason why fisherman and boat insurance are so important.

Coverage limits and deductibles

Much like car insurance, fisherman insurance has limits and deductibles. The limit is how much money your insurance company is willing to pay out when an incident occurs. Your deductible is the amount of money you have to pay before your insurance provider pays out. Having a higher deductible can lower your rates. However, it also means you have to pay more if you make a claim.

Your insurance company

It’s important to note that no two insurance providers are the same. They each have their own pricing structures and underwriting guidelines. Because of this, insurance prices may vary depending on the company you are working with. Your best bet is to reach out to a BrokerLink broker to get quotes from multiple insurers and find a policy that suits your budget and specific needs.