Key Takeaways
- Marine general liability insurance protects against passenger injury claims and third party lawsuits
- Protection & indemnity (P&I) covers wide range of maritime liabilities like collision damage and pollution
- Charter passenger liability shields from costs of passenger medical expenses and lawsuits
- Workers’ comp ensures injured employees receive wages and medical care
- Commercial property rebuilds assets if damaged by disasters
Introduction
As a business operating passenger vessels in coastal or Great Lake waters, you face unique risks that require specialized insurance protections. Marine operations expose your business and passengers to hazards from accidents, severe weather, and liabilities arising from transportation incidents. To best shield your finances and continued operations, certain core insurance policies are crucial.
Marine General Liability Insurance
Marine general liability insurance provides crucial protection for businesses in the coastal and ferry passenger transportation industry. It covers liability from a variety of incidents that could occur during marine operations and transit, such as passenger injuries, property damage claims, or fuel spills, and helps protect the financial health of the business. Typical pricing for this type of insurance for businesses in the Coastal and Great Lakes Passenger Transportation industry is between $5,000-$8,000 annually.
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Based on industry data and analysis of risk factors, the estimated average annual pricing for Marine General Liability Insurance for businesses in the Coastal and Great Lakes Passenger Transportation industry (NAICS Code 483114) is around $5,000-$8,000 per year. The pricing is derived from factors such as passenger capacity, annual revenue, claims history, safety record/procedures, and coastal/inland waterway area of operation.
Estimated Pricing: $5,000-$8,000
Protection & Indemnity Insurance
Protection and indemnity (P&I) insurance provides crucial coverage for businesses operating in the coastal and Great Lakes passenger transportation industry. P&I insurance helps protects these businesses from a wide range of third-party liability risks that could otherwise bankrupt them if left uncovered. It covers claims for injury or death of passengers, third-party property damage, collisions, wrecks, stranding costs, legal fees, pollution liability, and claims from employees. Premiums are estimated around $45,000 annually depending on vessel size and capacity.
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After reviewing average claims data and risk factors for coastal and passenger vessel operators, the estimated annual premium for Protection & Indemnity Insurance would be $45,000. This pricing is based on vessel size and passenger capacity as larger passenger vessels tend to have higher claims. The premium also accounts for the risks of operating in coastal and lake waters versus rivers or protected harbors.
Estimated Pricing: $45,000
Charter Passenger Liability Insurance
Charter passenger liability insurance provides crucial risk management protection for businesses in the coastal passenger transportation industry. It helps shield operators from costly legal battles and medical payments if an accident were to injure passengers or damage third party property during water transportation services. This type of insurance coverage is especially important given the inherent risks of transporting people via water vessels. It averages around $3.50 per passenger seat annually based on industry claims data and helps protect against lawsuits, pay for injuries, provide loss of income coverage, and cover legal defense costs associated with accidents during marine passenger operations.
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Based on industry research, the average pricing for charter passenger liability insurance for businesses in the Coastal and Great Lakes Passenger Transportation industry (NAICS 483114) is around $3.50 per passenger seat per year. This pricing is derived from looking at average claims data for this industry over the past 10 years and factoring in average passenger loads.
Estimated Pricing: $3.50/seat/year
Worker’S Compensation Insurance
Worker’s compensation insurance provides crucial financial protections for employees and employers in high-risk industries like coastal transportation. It ensures that injured workers receive timely medical care and wage replacement to help during recovery, while also shielding businesses from costly lawsuits.
Maritime operations and adverse weather conditions pose risks of injuries for vessel crews. Insurance coverage for accidents at sea or during severe storms is especially important in coastal transportation to cover medical costs and lost pay for those unable to work due to injuries sustained on vessels. Having this insurance signals employers prioritize crew safety, helping attract quality workers.
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Based on industry data and average claims, the estimated average pricing for worker’s compensation insurance for businesses in the Coastal and Great Lakes Passenger Transportation industry (NAICS Code: 483114) would be around $3.50 per $100 of payroll. This price was derived based on the industry having an above average risk level due to the nature of water transportation work and potential injuries.
Estimated Pricing: $3.50/$100 of payroll
Commercial Property Insurance
Commercial property insurance is an essential risk management tool for businesses in the coastal and Great Lakes passenger transportation industry. It provides coverage for specialized vessels, equipment, buildings and other physical assets that could face risks from natural disasters, accidents and other unforeseen incidents. Some key benefits of commercial property insurance for these businesses include protecting income if operations are disrupted and replacing lost revenue until normal business can resume. It also offers liability protection if customers are injured on the property. As industries facing unique hazards, these policies help businesses in coastal and lake passenger transport mitigate risks to property, operations, and financial losses.
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Based on average insurance rates for coastal and marine transportation businesses, the estimated average annual pricing for commercial property insurance would be around $12 per $100 of insured property value. This is calculated based on industry averages, considering risks such as storm damage, flooding, and vessel accidents/incidents. The pricing assumes standard policy with $1,000 deductible.
Estimated Pricing: $12/100 insured value
Conclusion
By maintaining the right mix of marine liability, passenger liability, workers’ compensation, commercial property and other tailored coverage, coastal and ferry transportation operators can focus on safely serving passengers instead of worrying about financial ruin from unexpected losses. Comprehensive insurance planning is key to the long-term success and stability of these important transportation businesses.