No matter a crab boat or any boat that takes a harvest from the sea, it is considered a fishing boat. Uncertainty is one of the most common features in the sea for a fishing boat. That is why security is always a concern.

A fishing boat must always follow the security measures that save the lives as well as the assets in the fishing boat. But, there can be losses or damages. That is why a fishing boat must have financial security covering the risks it has to bear.

Being a type of fishing boat, crab boats have to tolerate higher risks than any fishing boat. In this article, we will walk you through everything you must know about Crab Boat Insurance.

Everything You Must Know About Commercial Fishing Boat Insurance

Do Crab Boats Have Insurance?

Yes, crab boats have Insurance. Not only that, they consider it as one of the most impactful reasons to go to sea. The reason is crab boats have to face more dangerous situations than a typical boat.

What are the Benefits of having boat insurance?

Benefits of having boat insurance

Having Insurance for a crab boat comes with a variety of benefits. The most important aspect is it is not everything about the financial sector is just like you imagine.


Medical Coverage

The boat owners must think about not only saving the workers in the sea but the workers out of the sea after an incident. The hospital chargers are crucial for that.

According to research conducted by the University of California in 2018, it has been revealed that 65% of employers don’t tend to cover hospital chargers due to not having proper boat insurance. Also, among that 65% of the employer or the boat owners, 50% are crab boat owners.

A Peaceful mind

Owning a crab boat is not the only thing you have got to do as an investor. There are several more things to do, such as the maintenance, planning, and improvements of the business.

After having an accident or such an incident, you don’t have to fall and look for solutions. More importantly, you will feel financial instability due to such situations that prevent you from having a calm mind.

Along with crab boat insurance, you will be able to have a clear and calm mind as the Insurance manages everything for you. You will always know that your boat’s crew is protected, and you are protected in the end.


The crew members” protection is not the only thing you have to take care of but your future steps. Compliance that involves the standardization of your business is going to be a crucial factor for your business’s future.

For example, if you have in your mind to export your crabs to another country, you will need compliance. Having crab boat insurance related to your activities is such a need.

We discovered that there are specific Crab Boat Insurance that fulfills compliance requirements. As we have figured out, you can have future safety after having boat insurance, along with a lot more beneficiaries to come.

Financial Safety for your business

Boat accidents, thefts, damages, and injuries in a crab boat are more common than in any other fishing boat. Financial safety is what goes into the rising due to these incidents.

After having crab boat insurance only, you will be babel to get safety and entrustment to your business.

Not only having faced accidents or such scenarios, but you may also need crab boat insurance before them as well. For example, if you want to get investors to your business or bank loans, you will have to provide the documents verifying your business’s safety. In such cases, Insurance will be the cheapest and the most convenient way.

Liability coverage

The more an investor invests his / her money, the more the liabilities increase.

Although there are some capabilities a person can cover through assets or financial strength, it is impossible to cover the liabilities. That is why boat owners must get boat insurance for their businesses to cover their liabilities.

Liability insurance that comes as a part of the crab boat insurance can protect against claims of property damage or injury to others as a result of the boat’s operation. Not only the parties that live and exist in the boat but the secondary and third parties will be covered through the boat insurance.

Emergency Funding

A crab boat may have to go through various emergency costs. For example, the towing, emergency mobile repairs, and even rescuing will have to be tolerated by the crew.

Among the least available things in a crab boat, money is at the top of the list. In such cases, the crew members can directly get assistance from the boat insurance company even without contacting the owner.

We discovered that more than 75% of the crab boat insurance policies cover towing, rescuing, and other basic coverage the crew members may require.

Best 5 Fishing Boat Insurance

What should I have In Crab Boat Insurance?

What should I have In Crab Boat Insurance

When considering crab boat insurance, there are certain things that you should be looking for. We discovered that the below coverage must be in the crab boat insurance as crab boat owners nowadays are looking for them.



Marine liability coverage

The marine liability coverage covers damages that happened to other boats, structures, or natural resources caused by your crab boat. We discovered that reefs, aquatic plants, and fish are among the coverage that should be in the Marine Liability coverage.

Environmental pollution liability coverage

The effect that can occur to nature from a crab fishing boat is considerably high. The boat may have to reach various things in the ocean as well as the freshwater sources, and that is the main reason.

Also, crabs usually live in shallow water where travelers enjoy vacations. Therefore, if damage happens to natural resources, they will have to be covered.

Oil patches, boat sinking, and various coverage must be in the insurance policy under the Environmental pollution liability coverage. This covers the cost of cleaning up any oil or fuel spills caused by your crab boat.

Hull coverage

Hull Coverage is supposed to cover damages to the physical structure of your boat, including the deck, sides, and hull.

The hull coverage is one of the main concerns for a crab fishing boat as there is a higher possibility of damage to the hull than in any fishing boat.

The reason the Crab fishing boats have to mind the hull coverage is that crab boats cover a vast range of water sources. There for, there is a high probability of causing damage to them.

Protection and indemnity coverage

Protection and indemnity coverage for the crab fishing boat allows the boat owners to cover liability for injuries or damages to other vessels, crew members, or the environment. Although the probability is lower than other types of fishing boats, you must obtain this coverage.

Machinery coverage

Machinery coverage is also a valuable aspect of the insurance policy you are trying to get for your crab fishing boat. It usually covers the cost of repairing or replacing your boat’s engines and other machinery.

We discovered that the machinery maintenance cost is also comparatively higher for the crab machine boats as the bats have higher engine cycles. Since the boats have to move from one point to another more frequently, the fishermen turn on and turn off the boats more.

Cargo Coverage

The crab harvest is one of the most expensive and valuable harvests in the ocean. Your fishing boat must cover the cargo due to that reason. In the USA, there have been few cases that counted as shipping boat accidents.

Most of them had faced the loss of harvest. We discovered that only 18% of the harvest losses had been covered by the crab fishing boats.

Note: Most crab cargo fishing insurances cover due to accidents. But, you must find a cargo coverage policy that may still be applicable after having a technical error or a fisherman error. For example, if the ropes break, you will lose the harvest. But you won’t get the coverage still.

How To Find The Best Boat Insurance Policy?

There are specific steps you may follow to find the best Boat Insurance Policy for you.

1. Determine your coverage needs

You must Consider the type of crab boat you have. Also, you must have an understanding of its value, your typical crabbing operations, and any other specific risks you may bear when doing crab fishing. After getting an idea, it will help you to determine what coverage options you need.

2. Go Shopping for the Insurance policies

You must Contact multiple insurance companies and compare quotes for the policies. One of the most impressive things about Insurance is that insurance companies have good customer care.

All you have to do is to make a call. We suggest you Look for companies that specialize in maritime Insurance and have experience insuring crab boats.

3. Consider the reputation of the insurance company

You must Look for insurance companies that have a good reputation and a history of settling claims fairly and promptly. The best way is to ask other crab boat owners for recommendations.

4. Study the policy carefully

You must Make sure you have an understanding of what is covered and what is excluded in your policy. You must Ask questions and clarify if there is anything you don’t understand.

5. Look for discounts

Most insurance policies applied to the boats are part of larger companies that provide general insurance policies. You must ask if the insurance company offers any discounts for safety measures or equipment installed on your crab boat. If you have been a part of a previously applied policy, you will get such discounts.

6. Ask about the claims process

You must Find out what the claims process is like and how long it typically takes to settle a claim. The most important thing is the duration it takes to make sure the insurance company has a reputation for fairly and promptly settling claims. You can easily contact someone who has gone through the claiming process earlier. From crab fishing boat owners groups in social media, internet sources, forums, and there are various sources you can find such information.

What is the Additional Coverage A Crab Boat Insurance Should Have?

We did a small research on the additional insurance coverage a crab boat owner would get.

Protection and Indemnity

Since there can be travelers or tourists who enjoy the environment, there can be a high probability of causing third-party damage. The Protection and Indemnity allow the crab boat owners to get rid of such third-party damage coats.

Wreck Removal

Wreck removal coverage provides protection for the cost of removing the wreckage of a sunken crab boat from freshwater or seawater. Since the authorities are concerned about this, you must remove the wrecked boat as soon as possible. We discovered that the crab boat insurance policies usually cover this.

Loss of Income

After losing a boat or a harvest, the boat owner has to pass a specific time without an income. This coverage provides compensation for lost income due to the inability to fish following a covered loss. You can use that amount up to a specific time period.

Personal Effects

There are personal effects after a crab boat accident or a similar incident. The personal effects coverage provides protection for personal property belonging to the crew, such as clothing, fishing gear, and personal electronics.

When you don’t have the privilege to cover some damaged parts, such as the boat’s electronics, due to the polices weaknesses, you will be babel to cover some of them through this policy.

Can I Extend My Insurance For Crab Boat Insurance?

Yes, you can extend your boat insurance coverage by purchasing additional endorsements.

Also, we discovered that a crab boat owner could do that by choosing a policy with broader coverage. For example, if your current policy only covers damage to your boat, you will be able to purchase an endorsement.

It will provide additional coverage for your personal property, such as fishing gear, crab harvest, or for liability in the event of an accident.

How Much To Pay For Boat Insurance?

The price you may have to pay for boat insurance is from $200 to $500. We discovered that a Crab Boat Owner might have to include some additions to the boat insurance. Therefore, he will have to pay more than $100 – $200 for the insurance policy.

We went through several Insurance policies that are applicable to the Crab Fishing Boats. We could discover the approximate values you have to pay to get the Insurance policies according to various policies.

Environmental Liability $500 to $1,000 per year
Protection and Indemnity $1,000 to $2,000 per year.
Vessel Pollution Liability $500 to $1,000 per year.
Fish Loss: $500 to $1,000 per year.
Wreck Removal $500 to $1,000 per year.
Loss of Income $1,000 to $2,000 per year.
Personal Effects $100 to $300 per year.
Environmental Liability $500 to $1,000 per year.


What to do if your crab boat is damaged or lost?

Remember, you must not call the insurance company as the first thing to do. We would remind you of the below steps to be taken in case of an accident.

  1. You must ensure the safety of yourself and any crew members.
  2. Next, you must Report the loss or damage to the local authorities(If you have caused any secondary or third-party damage).
  3. The next step is to Notify your insurance company. You must collect details about the incident, including the date and time, location, and extent of the damage or loss before contacting the insurance company.
  4. You must consider whether the damage is minor or major.

If the damage is minor, you must take steps to secure the boat and prevent further damage.

If the damage is severe or the boat is lost, you must arrange for a surveyor to assess the damage or loss.

Note: Your insurance company may require a written report from the surveyor.

If the boat is recoverable, you must work with your insurance company to arrange for repairs or for the boat to be recovered.

If the boat is a total loss, your insurance company will typically pay you the agreed value of the boat or the cost of replacing the boat, less any applicable deductibles. You must arrange and obtain the entire amount from them after checking thoroughly.

  1. You must Keep records of all expenses related to the damage or loss, including repairs, surveys, and other related costs. The reason is, those may be covered by your insurance policy.
  2. You must renew the policy or provide proof in order to continue the Crab Boat Insurance policy.


We hope we have delivered the exact awareness required by you regarding the Crab Boat Insurance policy. Feel free to contact us to clarify more things.

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