Strong Boat Rental Procedures For Any Boat Rental Operation

For a boat rental business, it is critical to establish a strong procedure for employees and customers. Many boat renters do not have a lot of boating experience and a strong rental process can be very educational for your customers, while also protecting the business from potential lawsuits related to the boat rental operation. Each employee involved in the rental process should be thoroughly trained in the entire rental process including all checkout procedures and familiarity with each rental boat so that the rental process is consistent with each rental and that the process is documented for each rental.

Strong checkout procedures should do the following:

1. Identify all people who will be on the boat and who will be allowed to operate the boat. Names, address, phone numbers.
2. Identify the boat being rented and have the business phone number within view on each rental boat.
3. Establish the time the rental boat must be back and what are the penalties if it is not back on time.
4. Establish procedures in the event the rental customer is involved in an accident while away from the rental business.
5. Establish what will happen if the rental boat is damaged while under the control of the rental customer.
6. Document the rental process and instruction including:
           a. the operational controls (throttle, horn, lights, steering)
           b. operational restrictions (if any) such as water toys or skiing, scuba, etc.
           c. navigation limits on lake map if applicable
           d. safety equipment and operation of the equipment including life jackets,horn, audible alarms, etc.
           e. fueling/oil procedure where applicable.
7. Establish the watercraft weight/people capacity and document that the vessel is not overloaded.
8. Establish policy related to no alcohol
9. Document whether the rental customer desires a demo ride.
10. Documents that the rental customers will hold the rental business harmless for any damages (including personal injury or death) that may occur while the rental boat is under the control of the rental customer. Each adult passenger should sign!

If the rental business is operating from a marina, it is important to establish a boat loading/unloading area away from the fueling operation if at all possible to minimize potential boat collisions. Remember, your boat rental customer may not be experienced in the different steering dynamics of a boat as opposed to a land vehicle.

A strong rental process is crucial for a boat rental business and will help to minimize the risk of claims related to your boat rental operation. Ask yourself when the last time was that you really reviewed your procedures and took steps to improve that process. Now is the time to do a complete process evaluation and to make any needed improvements so that you are ready for the 2011 boat rental season! I hope you have a prosperous season!

Doug Timmons, CIC, CMIP

Marina and Resort Insurance Specialist

Commercial Risk Service