How Boat Dealers Can Protect Property


How Boat Dealers Can Protect Property

Safeguarding a boat dealership property requires more than just a solid structural foundation and sturdy walls. To avoid potential financial consequences and ensure the success of their dealership operations, owners need comprehensive and reliable boat dealers insurance coverage. Read on to learn more about this specialized form of insurance. 

Facts About Boat Dealers Insurance Coverage

As the name suggests, boat dealers insurance is a type of insurance created to protect boat owners and businesses involved in selling or distributing boats and related marine products. Like automobile insurance, it protects owners against claims related to physical damage to their boats or injuries/death resulting from boat operations.

Property Protection for Boat Dealerships

Boat dealerships invest considerable money in their inventory, equipment, and physical facilities. Therefore, insurance agents must educate their clients about the importance of property protection through boat dealer insurance coverage. Here are key areas to consider: 

Building and Structures

Property coverage should include protection for the physical structures, including the building itself, storage facilities, docks, showrooms, and any other structures on the premises.


The boat dealership’s inventory, consisting of boats and other watercraft, is essential to its operations. Therefore, it’s crucial to have sufficient coverage to protect it against risks like fire, theft, vandalism, and damage from natural disasters. It’s also essential that the policy covers the full value of the inventory and accounts for fluctuations in seasonal stock levels.

Equipment and Tools

Lifts, trailers, and diagnostic tools are just some equipment that requires protection. The coverage must offer comprehensive protection for such equipment, not only against potential damage but also theft. 

Business Interruption

If a covered loss occurs, a boat dealership may need to halt its operations temporarily. In such cases, having business interruption coverage is an absolute must, as it compensates for lost income and ongoing expenses that arise during the recovery period.

Signage and Outdoor Property

By protecting eye-catching signage and attractive outdoor displays, dealership owners can maintain their inviting appearance and keep customers interested.

Liability Protection for Boat Dealerships

In addition to property protection, boat dealerships also require liability coverage to safeguard against potential lawsuits and claims. Here are key liability considerations for boat dealer insurance:

General Liability

It provides essential coverage for third-party bodily injury, property damage, and the associated legal expenses that arise from accidents on the premises or as a result of operations.

Product Liability

Product liability coverage is essential to protect against claims arising from defects or malfunctions in the boats or related equipment sold.

Demonstrator and Test-Drive Coverage

During the boat purchasing process, it is common for boat dealerships to permit potential buyers to take boats for test drives or demonstrations. Insurance agents should ensure that the dealership has suitable coverage in place to safeguard against any accidents or damages that may arise during these activities.


Owners should immediately take action and obtain boat dealerships insurance before a boat accident. Remember: property protection should encompass buildings, inventory, equipment, and outdoor property, while liability coverage should address general liability, product liability, and test-drive activities. 

To ensure the most personalized and adequate coverage for your clients’ needs, Merrimac Marine Insurance is the best solution for your coverage needs. 

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.