Complete Guide to Boat Repair Shop Insurance
Running a boat repair shop means managing multiple risks every day. Customer boats worth hundreds of thousands of dollars, expensive equipment, employees working with hazardous materials — the potential for a devastating loss is real. This guide covers everything you need to know about properly insuring your marine repair business.
Core Coverages Every Boat Repair Shop Needs
1. General Liability Insurance
General liability is your first line of defense against claims from third parties. It covers:
- Bodily injury: Customer slips on your dock and breaks an arm
- Property damage: Your employee scratches a customer's car in the parking lot
- Products/completed operations: A repair you performed fails and causes damage after the boat leaves
- Personal injury: Accusations of slander or false advertising
Recommended limits: $1,000,000 per occurrence / $2,000,000 aggregate minimum. Many commercial customers and marinas require $1M+ limits.
2. Garage Keepers Liability
This coverage protects customer boats while in your care. Without it, damage to a customer's boat comes out of your pocket.
Coverage triggers:
- Fire or explosion at your shop
- Theft or vandalism
- Weather events (hail, wind, flood)
- Employee negligence
- Equipment failures
Recommended limits: Enough to cover the most expensive boats at your facility at any given time. Most shops carry $250,000 to $1,000,000.
3. Commercial Property Insurance
Protects your building (if owned), equipment, inventory, and business assets.
Coverage includes:
- Building and improvements
- Tools and equipment
- Parts inventory
- Office furniture and equipment
- Outdoor signs and property
Key endorsement*: Make sure your policy covers *business income if a covered loss forces you to close temporarily.
4. Workers Compensation
Required in most states if you have employees. Covers medical expenses and lost wages for work-related injuries.
Why it matters for marine repair:
- High-risk work environment
- Heavy lifting injuries common
- Chemical and tool exposure risks
- Protection from employee lawsuits
5. Commercial Auto Insurance
If you have any business vehicles — service trucks, trailers, forklifts used on public roads — you need commercial auto coverage.
Don't forget:
- Hired and non-owned auto coverage (for employee vehicles used for business)
- Trailer coverage
- Loading/unloading coverage
Additional Coverages to Consider
Professional Liability (Errors & Omissions)
Protects against claims that your work was defective or that you gave bad advice. If a customer claims your engine repair caused their motor to fail during a trip, this coverage responds.
Pollution Liability
Boat repair often involves fuel, oil, solvents, and other hazardous materials. If a spill contaminates the ground or water, cleanup costs can be enormous. Standard liability policies exclude pollution.
Cyber Liability
If you store customer credit cards, personal information, or use computers for your business, cyber coverage protects against data breaches and ransomware attacks.
Umbrella Insurance
Provides additional limits above your general liability, auto, and other policies. If a serious accident exhausts your primary limits, umbrella coverage kicks in.
Recommended: $1,000,000+ umbrella for most boat repair operations.
Industry-Specific Considerations
Mobile Repair Operations
If you offer mobile services, your coverage needs expand:
- Tools coverage away from premises
- Liability coverage at customer locations
- Commercial auto for service vehicles
- Care, custody, and control at remote sites
Marina-Based Shops
Operating at or near a marina adds considerations:
- Water-related liability exposures
- Marine general liability requirements
- Dock and pier coverage
- Environmental exposures
Specialized Services
Certain services may require additional coverage:
- Fiberglass work: Higher fire risk
- Paint and refinishing: Environmental and fire hazards
- Fuel system work: Explosion and pollution risks
- Sea trials: In-water liability coverage
How Much Does Boat Repair Insurance Cost?
Premiums vary based on many factors:
| Factor | Impact on Premium |
Typical ranges for a small to medium boat repair shop:
- General liability: $1,500 - $5,000/year
- Garage keepers: $2,000 - $8,000/year
- Property: $1,000 - $5,000/year
- Workers comp: Varies by payroll and state
Getting the Right Coverage
Work with a Specialist
Generic insurance agents may not understand marine business risks. Work with an agent who specializes in:
- Marine industry insurance
- Contractor and service business coverage
- Commercial risks
Review Annually
Your business changes — your insurance should too. Review coverage annually for:
- Revenue growth
- New services offered
- New equipment purchases
- Employee changes
- Lease or property changes
Compare Quotes
Don't just renew automatically. Get competitive quotes from multiple insurers every few years to ensure you're getting fair rates.
Common Mistakes to Avoid
1. Underinsuring garage keepers: One expensive boat could exceed your limits
Get Your Coverage Right
Don't leave your boat repair business exposed. Let our marine insurance specialists help you build a comprehensive coverage package.
Call (844) 967-5247 for a free coverage review, or get a quote online in just a few minutes.