Use
Activities that may be commercial
- Charter, bareboat or skippered, however occasional
- Paid deliveries or repositioning for a fee
- Training, coaching or instruction conducted for payment
- Carrying passengers for reward, including day trips
- Filming, survey work or any commercial contract using the vessel
- Sharing arrangements where payment exceeds genuine cost recovery
Pleasure craft use restrictions
A pleasure craft policy is priced on a vessel used occasionally, by its owner, for recreation. Commercial use changes the frequency, the people aboard, the duty of care owed to them and the liability profile — none of which the private product was rated for.
Cost sharing and paid use
Genuinely sharing fuel costs with friends aboard is not normally commercial use. Taking payment that exceeds costs, advertising the vessel, or operating with any regularity moves toward it. If you are unsure which side you are on, ask the insurer in writing and keep the answer.
Commercial marine cover
| Aspect | Private | Commercial |
|---|---|---|
| Who may be aboard | Owner, family, guests | Paying passengers or charterers |
| Liability | Third-party, recreational scale | Passenger liability, higher limits |
| Crew | Not contemplated | Employment exposure if crew are paid |
| Survey | By age or value | Often required, and more frequently |
| Compliance | Recreational registration | Domestic commercial vessel requirements may apply |
Prepare your quote properly
Insurers price what they can verify. Work through the vessel-details checklist before you request quotes, so every quote you get is built on the same facts.
Frequently asked questions
Can I charter my boat occasionally on a private policy?
Generally no. Any paid charter is commercial use, and a private pleasure craft policy will usually not respond to a loss occurring during it, however occasional the arrangement.
Is sharing fuel costs with friends commercial use?
Genuine cost sharing is not normally treated as commercial. Payment beyond costs, advertising, or operating with regularity moves toward it — confirm in writing if your arrangement sits near the line.
Related guides
- Bareboat Charter Insurance Australia
- Commercial Charter Boat Insurance Australia
- Syndicate and Shared Boat Insurance Australia
- Marine Insurance Broker: Pleasure Craft and Commercial
- Domestic Commercial Vessels and Yacht Insurance
- Is Boat Insurance Tax Deductible in Australia?
- Boat Insurance by Use and Cruising Style
- Shared Yacht Use and Ownership Insurance Guides