Whenever you budget the expenses of your business, Houseboat rental insurance must be included in the list because you can’t always know exactly what can happen in the future.
Need General Liability Insurance for Your Houseboat Rental
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With the protection provided by insurance against accidents and all the other sorts of insurance we will tell you about, you can protect your business and yourself in case something unwanted happens.
Like any business owner, for your Houseboat rental enterprise, you must consider how much financial risk you are taking on.
If your Houseboat rental business runs without proper insurance, you are taking a tremendous chance not just of losing some money but of a complete wipe-out.
This is because the laws in every state are very strict in enforcing liability on the owners of businesses for the upshots of their actions.
In this article, we are giving very general guidelines for small businesses to explain what the main kinds of insurance that you need are, and where possible, a rough guide to how much you can expect to pay.
The question is, can you afford to NOT have insurance for your Houseboat rental business?
What this means, for any Houseboat rental business owner, is that if some person claims that your actions caused them some physical or economic damage, a court can award damages far beyond the total size of your business.
Your Houseboat rental business is not sheltered by laws in the same way as states are, where edicts can place a “cap” on the maximum level of liability.
In some states, like Texas, there are specific monetary levels that limit the amount a court can award in any case against the state.
In a court case, it’s purely the right of the jury to award whatever amount they deem appropriate, even sometimes giving a plaintiff more than they have claimed.
When you are running your Houseboat rental operations, you can’t escape responsibility for the results of your actions.
Even more importantly, unless you have spent beforehand the money necessary to have your business running as an LLC, all of that liability belongs to you alone.
What does Houseboat rental insurance protect you from?
For your Houseboat rental business, the most important kinds of insurance are intended to cover the risks to your business from accidents, from unexpected events, and from mistakes.
In addition there are some official kinds of insurance that various states require.
In the next few paragraphs, we will describe the most important points any Houseboat rental business owner should remember when negotiating the insurance needed.
The main categories of insurance for your Houseboat rental businesses are liability insurance, commercial insurance, asset insurance and workers compensation insurance.
General liability insurance
Any Houseboat rental business is dealing directly with customers, and that means you usually have the danger that some accident can happen to them bodily or else something of theirs can be ruined.
In such a case, they can require compensation.
General liability insurance policy for your Houseboat rental business insures you against claims coming from injury to customers or damage to their property.
It protects your Houseboat rental business from the claims themselves and as well to any follow-on court costs and legal fees of the lawsuits.
In many cases, it will even help you to qualify for extra business from city and state organizations, where contracts insist on proper liability insurance.
The normal level of general liability insurance for your Houseboat rental business would be with a boundary of $1 million for a single submission and a total of $2 million for the whole year.
See the table in the costing section below for average prices of general liability insurance for your Houseboat rental insurance operations.
Professional liability insurance for your Houseboat rental business
In the event where a buyer alleges some negligence, errors, or omissions in how you conducted your Houseboat rental business for them, you can quickly have to fight a court case.
Even if the lawsuit against you is ruled in your favor, the cost of defense can be substantial, and the impact on your reputation can be damaging.
Almost all small Houseboat rental business should have enough professional liability insurance to cover an individual claim of $25,000, with annual cover of $50,000.
See the table in the cost of Houseboat rental insurance section below for average prices of professional liability insurance for your Houseboat rental operations.
Product liability insurance
Whatever goods you sell or advice you give about the goods, you are running a risk that buyers may claim that the results didn’t meet your description of function, or that your guidance was basically incorrect.
You need to understand the specific laws of product liability in your own state.
For example, in California, all businesses in the supply chain can be held culpable for injuries caused by products claimed to be defective.
To cover yourself against any likely lawsuit, you need Product liability insurance for Houseboat rental
Only you can know exactly how much insurance you need.
Best advice is to talk to experienced insurance agents, brokers or company representatives for help.
Commercial vehicle insurance for your Houseboat rental business
Take care! – practically all policies for private vehicle insurance do not cover any event like theft or accidental damage when the vehicle is being used for business purposes.
The proper way to make sure that your vehicle is insured for both its own value, and the valuable contents, is by taking out a designated commercial vehicle insurance package.
Commercial car policies cover the value of any vehicle in case of accident, malicious damage, fire, or theft.
In addition, in case of any accident, the car itself, the content and any legal bills, medical expenses, and property damage is guaranteed if your van is involved in a collision.
Most states, other than Virginia and New Hampshire, mandate this type of insurance.
The wanted value of the insurance depends on the depreciated value of the vehicle, and your intended level of cover of contents.
Tools and Equipment insurance
Since your Houseboat rental business needs specific and costly equipment, you can appreciate how much it can cost to replace it in case of any damage, loss, or theft.
The equipment may be subject to malicious damage, deliberate fire, theft, other such unpredicted acts.
In addition, acts of nature like lightning strikes, hurricanes, earthquakes, and other highly damaging natural events can wipe-out your whole business in one stroke.
Unless you can afford to immediately replace such specialized gear quickly out of your own pocket, you need full-level equipment insurance so that you can immediately buy any equipment needed to keep your Houseboat rental business running.
It is hard to advise how much equipment insurance you need – it’s basically dependent on how much you have invested in your Houseboat rental business’ equipment.
Commercial Property insurance
Any Houseboat rental business that owns or rents space in a building should have a commercial property insurance policy.
If you own the property, you may already have a substantial capital investment, along with a big liability if there’s a mortgage.
Any physical building location must carry insurance coverage for the value of the premises and contents against unexpected occurrences like fire and storms, and against criminal damages like theft and vandalism.
If your Houseboat rental business works in areas of high risk, like Florida or Georgia, additional coverage may be needed for earthquakes and hurricanes or tornadoes.
In other states like Illinois, where intense cold snaps can cause damage to outer coverings of Houseboat rental business premises, there is a need for more supplementary cover than in warmer climes.
Although the level of cover depends mainly on the value of the property, it’s not possible to say what cover your need, but we have been able in the table in the cost of Houseboat rental insurance section below to give some idea of the average prices per million dollars of property insurance for your Houseboat rental business.
Temporary insurance by month, week or day for your Houseboat rental business
Is your Houseboat rental business working part-time or casually, or is the level of business fluctuating?
Using short-term insurance makes perfect sense. Business insurance by the month, day, or week – temporary insurance for Houseboat rental – are special policies where you can cover a nominated period when you want to be covered.
By only paying for that period of cover, you will save by having reduced premiums but still having adequate risk cover.
The key feature of short-term insurance is that you purchase the cover for a defined period – a designated date, or a week or month starting on a specific date, for example for 30 days beginning on the specified date.
When you are expecting periods of better business activity, get the existing cover raised.
Talk to your insurance agent, broker or the company’s representatives to see what options you have.
Business Owners Policy BOP for your Houseboat rental business
You have the choice to combine several of the important kinds of small business insurance in one policy that is known as the business owner’s policy – BOP.
A BOP combines commercial property and public liability insurance by packaging these coverages into one insurance policy, which can save you money.
BOP insurance will protect you if any claims of injury or property damage are made.
It is frequently the right choice for small and medium-sized Houseboat rental businesses, such as yours.
There are a few limits that will rule whether BOP is suitable for your own business.
BOPs will not cover your professional liability or commercial vehicle cover.
Also, the size of your business will determine whether you are eligible to take out BOP cover.
The normal business that is allowed to take a BOP policy must have fewer than one hundred employees, and maximum five million dollars in annual turnover.
In addition, you must separately take out the required worker’s compensation, health and disability insurance as determined for your state.
Workers Compensation insurance for your Houseboat rental business employees
In almost all states, it is mandatory to have workers compensation insurance when your Houseboat rental business has one or more employees.
Workers compensation insurance covers the enterprise against any costs that arise if an employee experiences an injury or becomes sick as a result of work.
The benefits include medical expenses, death benefits, lost wages, and vocational rehabilitation.
Failure to meet a state’s regulations in this regard can leave you as the employer having to pay penalties levied by the states.
Some states, such as North Dakota, Ohio, Washington, West Virginia, and Wyoming only allow coverage from the government-run monopoly state funds.
In these states, you can’t obtain your workers compensation obligations from private insurance corporations.
Workers compensation premiums are calculated based on the employee’s pay, and usually come out at around $1.00 per $100 per month.
However, you must see the relevant authorities in your state.
Average costs of these types of insurance
Although every Houseboat rental insurance need is unique, there are enough examples of standard quotes from insurance companies for us to give approximate guidelines, including what are the cheapest rates offered.
Of course, you should always check with an insurance representative what’s relevant for your business.
The list below is of annual premiums we have collected for the main types of insurance your Houseboat rental businesses needs.
|Types of insurance||Price range|
|Product liability insurance||$205 – $735|
|Commercial vehicle insurance||$1680 – $2995|
|Public liability insurance||$285 – $705|
|Equipment insurance||$480 – $1075|
|Commercial insurance||$915 – $2975|
|General liability insurance||$635 – $1030|
Cost of insurance for your Houseboat rental operations depends on many different factors.
We have calculated these figures for small independent Houseboat rental businesses.
In larger states like Texas, premiums are generally about 20%-30% higher than national averages, whereas in smaller states like Utah, they usually are about 20%-30% lower.
The location and size and type of your Houseboat rental business can have a big effect on the cost of different policies.
You should discuss with professional insurance agents and brokers, or insurance company representatives.
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Also you can let the internet do the work for you by enquiring about insurance companies near where your business is located.
Another reliable source of information is the local Better Business Bureau in your suburb.
What is small business insurance for Houseboat rental operations?
This is a wide term used to describe basic insurance policies designed to protect Houseboat rental business owners from risks like bodily injury, property damage, claims of negligence.
Does my Houseboat rental business have to have insurance?
Some of the types of insurance are not mandatory for you to run your business, but they can protect you from risks in your business operations.
Certain other forms are required by state law, such as workers compensation and vehicle insurance.
What does a small Houseboat rental business insurance policy cover?
Liability insurance provides insurance against lawsuits or claims filed by a customer for bodily injury, property damage, or negligence.
The precise cover will vary based on your own operations.
See the table in the costing section above for average prices of the recommended policies for Houseboat rental insurance.
How much will Houseboat rental business insurance cost?
In addition to the size of the business, certain other factors, such as location and claims history, are used to determine your policy’s cost.
You should talk to professional insurance agents and brokers, or insurance company representatives.
You can search for more information insurance for Houseboat rental, in the search box below, and follow the relevant links.