Cruise Line Business Insurance
Getting insurance for your cruise line is essential.
Cruise lines need financial protection from personal injury claims, property claims, and other types of risks.
For example, a passenger could slip and fall on one of your ships, injuring themselves, or passengers’ luggage could go missing while on a cruise.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Cruise Line
General liability insurance is — generally speaking — one of the most important insurance policies for cruise lines.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Besides general liability policies, other types of policies can benefit your cruise line:
- Workers’ compensation insurance
- Product liability insurance
- Commercial property insurance
- Commercial umbrella insurance
In general, business insurance providers are either traditional insurance companies or online insurance companies:
- Traditional brick-and-mortar insurers — This type of insurer consists of many big names, like Allstate and The Hartford. These companies are safe options, have a lot of experience, and offer high-quality policies. However, they generally charge more for coverage.
- Online insurers — This category refers to insurance providers that sell policies online using AI. Because they don’t pay insurance agents or have physical branches to maintain, they can offer the same high-quality coverage that traditional insurers do for less. Although these companies are newer, we recommend them for most small businesses.
Find the Right Policy at the Best Rate
We’ve reviewed and tested the major business insurance providers. Let us help you find the best match for your business.
Cost of General Liability Insurance
On average, cruise lines in America spend between $350 - $700 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a cruise line to other professional industries using the graph below:
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
Start an Online Quote for Insurance
Finding the most affordable premium starts with getting accurate quotes from highly rated providers.
Common Situations That General Liability Insurance May Cover for a Cruise Line
Example 1: A passenger injures himself when your cruise ship collides with another ship during docking. General liability insurance would cover the cost of the passenger’s medical bills.
Example 2: While the ship’s captain believes there’s enough room to clear a certain bridge, the water level is too high and the bridge hits the wheelhouse as the boat attempts to navigate underneath. General liability insurance would cover the cost to repair damage to the ship and bridge.
Example 3: Guests claim inclement weather ruined their trip and sue your company. General liability insurance would cover your legal costs to fight the lawsuit or settle out of court.
Check out our review of the Best Small Business Insurance Companies.
Other Types of Coverage Cruise Lines Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all cruise lines should obtain.
Commercial Property Insurance
If you own the buildings in which you operate your corporate headquarters and regional offices, commercial property insurance helps protect your business-related property in the event of a fire, burglary, or natural disaster. It covers the cost of repairing any structural damage to your buildings or grounds as well as repairing or replacing any business materials you store within them.
Workers’ Compensation Insurance
Cruise line workers face a variety of potential on-the-job hazards. Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.
Data Breach Insurance
Cruise lines collect and store a vast amount of customer data from online bookings. If your business loses sensitive client or company information as a result of a cyber attack, this coverage would help pay to restore your computer network, compensate customers for any related losses, and preserve your company’s reputation if you can quickly settle the repercussions of the hack.
Liquor Liability Insurance
Liquor liability insurance protects your company if guests damage your business property due to alcohol consumption. It also covers medical expenses and your legal costs if a customer causes bodily harm to themselves, another passenger, or an employee.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. If you need to evacuate guests by helicopter after severe weather damages your ship, for example, this coverage can help pay for that unexpected expense. Commercial umbrella insurance also protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your cruise line:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Business Insurance Is the Best Way to Protect Your Business
If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.
Be sure that everything you've built is safe by getting business insurance.
Cruise Line Business Insurance FAQ
Can I buy business insurance online for my cruise line?
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
What is included in a business owner’s policy?
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
What is the difference between business insurance and general liability insurance?
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Do I need insurance before I start a cruise line?
Yes. We highly recommend obtaining adequate business insurance for your cruise line before beginning to operate to avoid leaving your company open to the many potential risks businesses in the tourism and maritime industries face.
Local laws also may require various types of business insurance, such as workers’ compensation, in order to operate legally.
Will insurance protect my cruise line from everything?
Not necessarily. Certain exceptions may be written directly into your cruise line insurance policy, and some perils may be entirely uninsurable.
Do I need business insurance if I already have an LLC?
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.