A boat sharing service, also known as peer to peer boat rental, involves private boat owners renting out their personal watercraft. With a rising demand for on-the-water activity coming from individuals and families, boat sharing has become a lucrative business opportunity that resembles the Airbnb platform. However, home rental is an established and regulated field. Peer-to-peer boat sharing is a relatively new venture with some unfamiliar risks that must be navigated.
1. General Liability Risks
When conducting business of any sort, it is safe and prudent to be insured against a variety of general liability risks. For boat rental operations, this includes accidents that may occur when renters are boarding, docking or disembarking.
2. Damage or Injury
When sharing one’s one property as a business asset, it’s easy to imagine that damage during customer operation is a real concern. Worst case, a renter will sustain an injury during use.
3. Lack of P2P Rental Coverage
While general liability coverage and rental insurance are well-trodden ground in the industry, peer-to-peer boat rental is a specialized niche. There are unique needs for a boat sharing service that may require a customized plan of policies to satisfy.
Kicking off a new business idea is exciting, but it doesn’t come without new responsibilities. While boat owners can make some extra profit off their existing property with a peer-to-peer boat rental platform, it is absolutely necessary to know the risks and to take insurance precautions.