12 June 2025

How to protect your business as a boat builder

By James Nicholas New Business Executive, Worcester
Two people in orange outfits working on a white boat docked in a marina. One is on a ladder, the other on the deck.

Key considerations to safeguard your boat building business

As a boat builder we understand that the risks to your business are particularly premises dependant compared to other marine trades.  However, to ensure rounded protection for your business we have complied a list of key considerations.

Builders risks – essential for any boatbuilder!

This insurance cover will protect you from day 1 of a build until the point of vessel completion. It includes an allowance to test and demonstrate your build on the water to verify it’s all completed to the agreed specification and standards, ready for client sign off.

For insurance purposes make sure you understand the build completion value, how many vessels you are working on at any time and the total sum insured for all builds.  Without this you may not be adequately covered if anything happens to the boat(s) you are working on.

Two people in orange overalls work on a boat, maintaining it as part of local marine trade policy regulations.
A person stands near a motorboat in a large metal boathouse, highlighting aspects of marine trade policy.

Do an inventory of what’s in your workshop

As a broker, when we review a schedule it’s amazing how many times we find businesses are underinsured because of the sums insured not being periodically updated over the course of time.  This leaves your business at risk of underinsurance and therefore not being paid for full losses in the event of a claim. Our recommendation is to take a step back and every 6 months carry out a review of what’s in your workshop.  Ask yourself if an item were lost could it result in you not being able to work properly?  Below are a few key points to check regarding sums insured.

  • Have I done any tenancy improvements?  Added racking, a mezzanine floor or made improvements to the electrical or plumbing facilities.
  • What contents do I have and what would it cost me if there was to be a loss? Machinery, plant, hand tools, boat part stock, business contents (small parts or consumables for the build, fuel, and fuel pumps), office computer equipment (laptops, computers, printers).
Illustration of a sailboat with a person climbing the mast and another person on deck, featuring a red wave design on the sail.

What risk management do I have in force?

Most insurance policies will have risk management conditions that need to be met and advised on by endorsement / warranties and/or in the policy wording.  Below we highlight some key areas to consider:

  • What locking devices do I have to prevent theft? Are they sufficient and do they comply with the minimum standards of security noted in the policy?
  • Do I have fire extinguishers and are they inspected annually?
  • Is my 5-year electrical safety certificate in date?
  • Do I store flammables in metal cabinets or fire-retardant locations to reduce fire risks?
  • Is my premises clean and tidy to stop slips and trips which could cause injury to staff / labourers?
  • Have all staff or labourers been shown how to use machinery and equipment safely and have they signed to confirm they have understood the training.

Is your business ready to handle risk?

Our new Benchmark Review Report provides an excellent starting point. This independent ‘health check’ helps you identify areas of risk that need attention and gives you reassurance where your protections are already solid. It can also strengthen your case with insurers by offering tangible evidence that your business is a better risk—supporting more favourable premiums and terms. An annual review not only improves your internal risk management but can also reveal areas where we might be able to offer additional support. Try the Benchmark Review tool today and gain clearer insight into your current risk profile and how it can support your insurance strategy.

With boat building being a relatively creative industry, it is likely that you will face risks unique to your business and build set up.  Please feel free to use the above as guidance to help protect yourself from physical losses and liability claims, but also never hesitate to get in touch for a personal review of your specific needs.

Should you wish to have a conversation with one of our team about business insurance requirements please call us on 01905 930 760.

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01905 930 760
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