Running a charter boat in Florida requires commercial marine insurance — your recreational policy will not cover paying passengers. Here is what licensed captains need.
The Commercial Use Exclusion That Ends Recreational Coverage
The single most important thing every Florida charter boat captain needs to understand is this: your personal recreational marine insurance policy does not cover you when you carry paying passengers. Every recreational marine policy — without exception — includes a commercial use exclusion that voids coverage for any incident occurring during commercial operations, including carrying fare-paying passengers on a charter. If you operate a charter fishing boat, sunset cruise vessel, snorkel tour, or any other paying passenger operation in Florida without commercial marine insurance, you are operating completely uninsured for the activity that generates your income and your greatest liability exposure.
USCG Licensing Requirements for Charter Operations
The US Coast Guard license you need depends on how many paying passengers you carry and what type of vessel you operate:
- OUPV (Operator of Uninspected Passenger Vessels) / 6-Pack License: Allows you to carry up to 6 paying passengers on uninspected vessels operating on near-coastal or inland routes. This is the most common license for Florida charter fishing captains running private fishing charters.
- 100-Ton Master License: Required for vessels carrying more than 6 paying passengers on uninspected vessels, or for operators of inspected vessels of any size. Requires OUPV as a prerequisite plus additional sea time.
- USCG Inspected Vessel Certificate: Vessels carrying more than 6 paying passengers must be USCG-inspected and hold a Certificate of Inspection that specifies the vessel's allowed passenger capacity and operating conditions.
What Commercial Charter Insurance Covers
A proper Florida charter boat insurance package should include:
- Commercial hull coverage: Physical damage coverage at agreed value for the vessel, engines, and permanently installed equipment. Agreed value is essential for charter boats that represent both a financial investment and an income-generating asset.
- Protection and Indemnity (P&I) coverage: The marine industry's term for commercial liability insurance. P&I covers bodily injury liability for passenger injuries, property damage liability to third parties, crew injury under the Jones Act, and incidental environmental liability.
- Passenger liability: Specific per-passenger bodily injury limits, commonly $100,000 to $300,000 per person for small charter operations. USCG may require minimum liability levels for your specific operation type and vessel class.
- Medical payments for passengers: Immediate medical expense coverage for injured passengers regardless of fault — particularly important given that passenger injury claims are the most frequent source of charter boat liability claims.
Documentation Your Insurer Will Need
When applying for Florida charter boat insurance, have these documents ready:
- Copy of your USCG Captain's License (OUPV or Master's)
- Vessel documentation number (USCG documentation preferred for charter vessels)
- USCG Certificate of Inspection if the vessel is inspected
- Description of charter operations (fishing, sunset cruise, snorkeling, etc.)
- Maximum passenger capacity
- Area of operations (inshore, coastal, offshore)
- Annual passenger estimate or days-per-year operating
- Loss history for the past 5 years
Working with FloridaCover for Charter Insurance
FloridaCover specializes in connecting Florida charter captains with carriers who genuinely understand commercial marine operations. Charter boat insurance is not a commodity — the details of your operation, vessel, license type, and passenger profile all affect which carriers will offer the best terms and pricing. A specialist marine broker who regularly places charter risks knows which carriers are competitive for your specific type of operation, whether that is a 6-pack fishing charter, a 25-passenger dive boat, or a sunset cruise operation carrying families and tourists.
Ready to find your best-fit insurer? Get a Quote from FloridaCover — we match every Florida boater to the right carrier for their vessel and use.
The FloridaCover editorial team has over 15 years of combined experience covering US marine insurance, Florida boating, and maritime industry research.
