A listed operator is one that is specifically listed on the auto policy as a regular or occasional driver of the insured vehicle. A permissive operator is a person who is not specifically listed on the policy, but has been given permission by the policyholder to drive the vehicle. Email the Occasional Operator Scheme team to get a reference number apd.oos@hmrc.gov.uk. HMRC will only email you with confidential information if you have given them your written agreement they.
This blog was originally published on May 24, 2015. It was updated and re-published on August 9, 2018.
In 2017, the United States Coast Guard counted 4,291 recreational boating accidents that resulted in 658 deaths, 2,629 injuries and $46 million in property damage, according to a 2017 USCG boating survey. Ordinarily, having boat insurance should be enough to ensure that you’ll be covered if one of these accidents were to happen to your boat.
However, if your friend or extended family member happens to be behind the wheel of your boat in an accident, then you’re actually not going to be covered. Boat-borrowing is a simple concept that becomes a tricky situation that a standard policy just doesn’t cover.
Occasional Operator Certification
Buying and purchasing insurance for a boat is similar to an automobile, but there are some key differences. But all in all, the first priority is safety. You’re going to want standard liability coverage as well as an umbrella policy to tie in all the loose ends. If you’re letting someone borrow your boat, make sure all of the bases are protected. Here’s how to make sure your boat has the proper coverage:
Standard Liability Coverage
A basic liability policy is necessary for a boat. Unlike auto insurance, having a boat insurance policy is not required in any state, but it’s definitely a good idea to have. It’ll keep you covered from physical damage against your boat, passengers and specific items on board. On top of that, the policy will also cover if there’s damage to another boat, pier or dock. And although you might have to pay a higher premium, your standard policy (which can range from $100,000 to $1,000,000) can also cover you in the event of fire, theft or bad weather.
However, it’s important to remember that this policy will not cover you if someone borrows your boat, however. This feature is identical to an auto policy. This means that you’ll be liable in court for any damages caused by someone other than you operating your boat.
Umbrella Policies
Just like the name suggests, an umbrella policy will cover both you, your friends and extended family members who might borrow your boat. This policy will cover you if you happen to lend your boat out, providing temporary boat insurance coverage to individuals who may not be on your policy. It’s a critical policy to attach to your standard liability coverage—it fills in the gaps left and is not confined to just you, making it the most salient feature of the policy.
Occasional Operator Meaning
This policy can also include ATV’s, boat trailers and other recreational vehicles. If you have multiple vessels, than an umbrella policy is for you.
The Cost of Umbrella Coverage
While umbrella coverage can be costly, it’s still less expensive in the long run, once adding in your extra policies and the overall cost of boat insurance. Some states have a minimum required sum of not less than $5 million, and the max can be as high as $500 million for those who have exceptionally expensive vessels. So if you buy $5 million of umbrella coverage, you’re going to be adding another $400 a month to your premium. The cost goes higher when you want more coverage.
About Mariners Insurance
Mariners General Insurance Group was founded in 1959 to protect boat owners and marine business clients. We are marine insurance experts and insure boats worldwide – in every ocean on the planet. Marine insurance is critical if you own a boat or nautical business. Trust the professionals with all of your Boat Insurance needs – trust Mariners Insurance. Call us at (800) 992-4443 any time you have questions or concerns about insurance for your vessel or marine business.
In reference to automobile insurance, there are many different rate classifications that exist. Insurance Companies rate and subsequently charge a premium based on how your vehicle is being used. The more frequent the vehicle is being driven or used, the higher the premium charged to account for the increased exposure and possibility of a claim.
Although there is some variation in class definitions among Alberta automobile Insurers, there are many that are considered to be standard. We thought that it would be beneficial to define some of the most common:
Class 01 – Pleasure Use
– Principal operator must be 25 years of age, or older
– The vehicle may not be used for professional or vocational purposes
– The vehicle may have only two drivers, excluding Occasional Drivers
– Each driver must be licenced for a minimum of three years
– The vehicle may not be driven to work
– The vehicle may be driven a maximum of 16,000km per year
Class 02 – Commuting/Pleasure
– Principal operator must be 25 years of age, or older
– The vehicle may have only two drivers, excluding Occasional Drivers
– The vehicle may be driven a maximum of 25km to work, one way
Class 03 – Commuting/Pleasure
– Principal operator must be 25 years of age, or older
– Business use for dentists, doctors, lawyers or professional engineers
– No drivers under 25 years of age unless a separate Occasional Driver premium is charged
– This classification is also used in the event there are more than two drivers over 25 years of age, or if the vehicle is driven to work more than 25km one way
Class 05 – Occasional Driver (Female)
– Used for Occasional Drivers under 25 years of age where the vehicle’s Principal Operator is a Class 01, 02, 03 or 07
– A separate premium is charged on the Liability, All Perils and/or Collision premium
Class 06 – Occasional Driver (Male)
– Used for Occasional Drivers under 25 years of age where the vehicle’s Principal Operator is a Class 01, 02, 03 or 07
– A separate premium is charged on the Liability, All Perils and/or Collision premium
Class 07 – Business Use/Pleasure
– Principal operator must be 25 years of age, or older
– No drivers under 25 years of age unless a separate Occasional Driver premium is charged
– Business use is not applicable for vehicles used for transporting materials or tools to place of employment, or for delivery (commercial automobile classifications would apply)
Class 08 – Pleasure Use
– Principal operator is a married male under age 21, residing with their spouse
Class 09 – Pleasure Use
– Principal operator is a married male age 21 to 24, residing with their spouse
Class 10 – Pleasure Use
– Principal operator is a single male age 16, 17, or 18
Class 11 – Pleasure Use
– Principal operator is a single male age 19 or 20
Class 12 – Pleasure Use
– Principal operator is a single male age 21 or 22
Class 13 – Pleasure Use
– Principal operator is a single male age 23 or 24
Class 18 – Pleasure Use
– Principal operator is a single female, under age 21
Class 19 – Pleasure Use
– Principal operator is a single female age 21 to 24
We hope you have found this information helpful! Please watch for next week’s post with information on the different types of commercial automobile classifications.
Thank you,
The Costen & Associates Team
PS – We would like to take this time to wish Jamie Richardson a Happy 4th Anniversary with Costen & Associates!
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