In the world of marine insurance, there are two types of policies that are oftentimes difficult to understand – bumbershoot and umbrella coverage.  While navigating these types of policies can be tricky, it’s not impossible.  Thankfully, the following information will enable you to learn more about these policies so you understand how they differ.

A Word for Owners of Marine Businesses

There are a number of unique challenges that marine businesses and their owners have to face every day.  When determining the types of coverages that will offer the most protection, they need to assess certain risks that are associated with their business.  For instance, on one hand, it may be smart to pay for environmental liability coverage that includes bodily injury, business interruption, and property damage. On the other hand, you might want to consider marine business workers’ compensation.

Bumbershoot Coverage

Bumbershoot policies are a specific type of umbrella coverage that has been designed and developed to cover the risks that are specifically attributed to marine liability.  But, it could also be relevant for those risks of a non-marine nature.  Bumbershoot policies, like umbrella policies, provide a much wider range of coverages than marine insurance policies that cover underlying liabilities.

Granted, these types of policies were originally designed to cover marine risks.  But they may also provide coverage for those unique expenses attributed to collisions and salvage operations as well as liability and adheres to the standards established by the Harbor Workers and Longshoremen’s Act.  This specific type of commercial marine coverage is oftentimes chosen by shipping yards.

Umbrella Coverage

These types of commercial marine insurance policies function about the same way that other coverages such as auto and homeowners do.  If you have this type of coverage, you should be protected against catastrophic loss.  In most cases, these policies are written over primary liability coverage such as:

  • employer’s liability
  • general liability for commercial businesses
  • liability for commercial vessels

Umbrella policies provide additional coverage when you’ve exhausted your primary coverage.  Plus, it can potentially provide protection found in underlying policies.  As an example, let’s assume that someone is suing you for injuries sustained in an accident that you were involved in or property damage attributed to that accident (or both).  A commercial marine insurance policy with umbrella coverage would protect you and your company financially.

Choosing the Marine Coverage that’s Right for You

In order to ensure complete financial protection, you have to select a marine insurance policy that is best suited for your commercial enterprise (i.e. bumbershoot or umbrella coverage).  It’s important to find not only an experienced agent but a reputable boat, yacht, and marine insurance company that are accessible 24/7.  It’s the only way to have peace of mind in the event of an accident. You know that there is support available.

Call 1-800-585-1665 today to request a quote from InsureAnyBoat.com