A Guide to Parasailing Insurance


A Guide to Parasailing Insurance

What is parasailing insurance, and what does it cover when considering this specific aquatic activity that many partake in? Parasailing, paraskiing, parakiting, or parascending, is a water sport activity popular among adventurous tourists and locals. Many have it on their bucket list, especially among those seeking adventure. And like any outdoor activity, parasailing comes with its own risks.

According to the Parasail Safety Council, there were 1,365 minor injuries, 520 severe injuries, and 79 fatalities out of approximately 141 million parasail rides. Although these numbers represent a tiny percentage, taking the necessary precautions like training operators and holding valid Parasailing Insurance Coverage is still a top priority for many parasailing businesses.

What is Parasailing Insurance, and What Does It Cover?

Parasailing Business Insurance is a specialized insurance that offers protection against various liabilities that may arise from parasailing operations. To ensure comprehensive protection, a parasailing business should have several forms of coverage, including:

General Liability Insurance

As the most common and comprehensive type of coverage, General Liability Insurance is the perfect first line of defense against various general and frequently occurring claims. Listed below are some of the risks covered by this insurance.

  •     Third-party bodily injury: If a rider gets hurt while riding in your client’s parasail, the insurance policy can help pay for their medical bills and other associated costs
  •     Advertising injury: In the event of a copyright infringement claim against your clients’ parasailing business, the policy can assist with a legal defense.
  •     Third-party property damage: If the business causes damage to someone else’s property, the coverage can help pay for replacement or repair costs
  •     Reputational harm: Someone can sue the company for slander or libel, and the policy can help cover legal costs to defend your business

Typically, American parasailing businesses pay an annual premium of $400 to $1,100 to secure general liability coverage of $1 million. The price varies depending on several factors, including the location, number of employees, deductible, general aggregate limit, and per-occurrence limit. 

Watercraft Insurance

Watercraft insurance coverage protects boats, jet skis, and other types of watercraft. Likewise, it typically covers the cost of damages or losses resulting from accidents, theft, or natural disasters while the watercraft is in use, transported, or stored.

Depending on the policy, additional coverage options may be available, such as fishing equipment, personal property, and towing.

Business Interruption Insurance

Business Interruption or Income Insurance covers lost income, ongoing expenses, and other costs that a business may incur while temporarily closed or unable to operate due to a covered event fully. Next, it is usually an endorsement of a commercial property insurance policy or as part of a comprehensive business insurance package.

Commercial Insurance Coverage

Commercial Insurance provides coverage for physical damage or loss of property used in a business operation. Significantly, it helps cover the losses associated from damages. These damages can harm the physical structure of the building. Ultimately, some of these structures can also include any equipment, inventory, furniture, or other property owned by the business.

Your clients should also consider purchasing Workers’ Compensation Coverage and Umbrella Liability Insurance. Significantly, Workers’ Comp benefits workers who suffer an injury or illness on the job. Umbrella Insurance provides additional coverage beyond the limits of a primary policy. Together, these policies can offer added protection for your clients’ businesses and employees against unexpected events and financial losses.

About Merrimac Marine Insurance

At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ business and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.