Company insurance is intended to safeguard the financial assets of a firm owner and is a necessary investment for a cruise line business.
This article will discuss the primary insurance coverage for cruise lines, general liability insurance, as well as additional policies that are appropriate for this industry.
Cruise Lines’ General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR A CRUISE LINE BUSINESS
Example 1: A passenger is injured when your cruise ship collides with another vessel while docking. The passenger’s medical expenditures would be covered by general liability insurance.
Example 2: While the captain of the ship feels there is enough space to clear a particular bridge, the water level is too high, and the bridge collides with the wheelhouse as the boat tries to go under it. The expense of repairing the ship and bridge would be covered by general liability insurance.
Example 3: Guests sue your organisation because severe weather disrupted their vacation. General liability insurance would cover the expenses of defending the case or settling out of court.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
In the United States, cruise companies typically pay between $350 and $700 per year for $1 million in general liability coverage.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Cruise Lines
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all cruise lines should have are listed below.
Insurance for Commercial Property
If you own the buildings where your corporate headquarters and regional offices are located, commercial property insurance protects your company’s assets in the case of a fire, burglary, or natural catastrophe. It pays for the repair or replacement of any structural damage to your buildings or grounds, as well as the repair or replacement of any business goods stored inside them.
Insurance for Workers’ Compensation
On-the-job dangers for cruise line personnel are many. Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not just an employee’s medical expenditures and missed pay if they need time off to recuperate, but also any disability or death benefits resulting from a work-related accident.
Insurance for Data Breach
From online reservations, cruise companies capture and keep a massive quantity of client data. If your firm loses critical client or corporate information as a consequence of a cyber assault, this coverage will assist pay to repair your computer network, reimburse clients for any associated damages, and protect your organization’s image if the breach is resolved fast.
Insurance for Liquor Liability
Liquor liability insurance covers your business if visitors cause damage to your property as a result of alcohol usage. It also covers medical expenses and legal fees if a consumer injures themselves, another passenger, or a staff.
Coverage Options for Some Cruise Lines
In addition to the insurance listed above, your cruise line firm may need other forms of coverage based on particular elements of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Umbrella Insurance for Businesses
While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. If, for example, heavy weather destroys your ship and you need to evacuate passengers by helicopter, this coverage might assist cover the unforeseen expenditure. Commercial umbrella insurance also protects you from having to pay legal expenses and awarded damages that exceed the limits of your main policy out of pocket.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your business is an LLC, look into LLC Insurance.