Boat Rentals & Peer-to-Peer Apps: Do You Need Extra Insurance

With the rise of peer-to-peer boat rental platforms, boating has become more accessible than ever. These apps can help connect boat owners with renters looking for a day on the water, but they also raise important questions about insurance. Whether you’re a boat owner or someone renting a vessel, understanding your coverage is crucial.

For Boat Owners

Renting out your boat can be a great way to offset maintenance costs, but it comes with risks. Most standard boat insurance policies do not cover commercial use, which can include peer-to-peer rentals. That means if your boat is damaged or someone is injured during a rental, you could be left paying out of pocket.

Fortunately, many rental platforms offer supplemental insurance. However, coverage limits and exclusions vary, so it’s essential to read the fine print. You should also notify your personal insurer about your rental activity because failing to do so could void your policy.

To protect yourself fully, consider purchasing a commercial boat rental policy or an endorsement that covers peer-to-peer activity. This can verify that you’re covered even if the platform’s insurance falls short.

For Renters

Renting a boat for a weekend adventure is exciting, but accidents can happen. While some platforms include renter liability insurance, it may not cover all scenarios, especially if you operate the boat improperly or violate the terms of use.

Before booking, ask the owner or platform about what’s covered. Does the insurance include damage to the boat, third-party injuries or towing costs? If coverage is limited, you might want to purchase a short-term boat rental insurance policy.

Also, check if your personal insurance (like homeowners or credit card benefits) offers any protection. And always follow safety guidelines by wearing life jackets, avoiding alcohol and knowing the local boating laws.

Learn More

Whether you’re renting or listing a boat, insurance is not something to overlook. Peer-to-peer platforms make boating easier, but they also introduce new liabilities. Taking the time to understand and secure proper coverage can promote smooth sailing for everyone involved. For boat insurance near you, contact Lamas Insurance Agency.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.