I thought I was being smart by listing my 24-foot Sea Ray on Boatsetter to offset the dock fees. The third renter ran it aground on a sandbar, destroying the prop and bending the lower unit shaft—a $4,500 repair. When I called my Geico Marine agent to ask a hypothetical question about “rental damage,” the tone changed instantly, and three days later, I received a notice of cancellation for “unauthorized commercial use.”
Key Takeaways
- Personal Policies Hate Rentals: Standard marine insurance (Geico, Progressive, State Farm) is strictly for “Pleasure and Recreation.” Accepting even $1 for a charter violates the “Commercial Use” clause and voids coverage.
- The Platform’s Policy is Primary: When you rent via Boatsetter or GetMyBoat, their commercial fleet policy (often Geico Marine’s commercial division or vQuip) takes over during the rental period. You should have claimed through them, not your personal policy.
- The “Lapse” Gap: There is a terrifying gap between when the renter drops off the keys and when you inspect the boat. If damage happens then, neither policy might want to pay.
- Non-Renewal Risk: Even if you don’t file a claim, simply listing your boat on a P2P site is considered a “Material Change in Risk.” If your personal carrier finds out (and they use AI scrapers to check listing sites), they will drop you.
The “Why” (The Trap)
The trap is the “Commercial Use Exclusion.”
Marine insurance is binary: Pleasure or Commercial. There is rarely a hybrid in standard markets.
By listing the boat, you effectively turned it into a commercial vessel. Your personal policy wasn’t priced for the risk of a drunk bachelor party captaining your vessel.
The secondary trap is “Double Jeopardy.” Filing a claim on your personal policy for damage that happened during a commercial rental alerts your insurer to the breach of contract.
The Investigation (I Called Them)
I investigated how the major players handle P2P situations in 2026.
Geico Marine / BoatUS
- My Analysis: They are the dominant player. Interestingly, Geico underwrites the Boatsetter Peer-to-Peer policy.
- The Catch: While Geico Commercial covers the rental, Geico Personal (your base policy) might still drop you if they think you are renting it out too often (e.g., >30 times a year). It creates a confusing conflict of interest.
Progressive
- My Analysis: Strict no-go. I spoke to an underwriter who said, “If we see the HIN (Hull ID) on a rental site, we send a non-renewal notice.” They do not offer a P2P endorsement for small boats.
Global Marine / Charter Lakes
- My Analysis: These are the pros. They offer “Occasional Charter” endorsements. If you plan to rent, dump the personal policy and buy a policy explicitly designed for “6-pack charters” or P2P. It costs 30% more but you actually have coverage.
Comparison Table
| Feature | Personal Policy (Standard) | Boatsetter/Platform Policy | Commercial Charter Policy |
| Covers Renter Damage? | NO (Void) | YES (During rental) | YES |
| Covers You (Owner)? | YES | NO (Only during rental) | YES |
| Cancellation Risk | High (If listed) | N/A | Low |
| Cost | $500/yr | Split of Rental Fee | $1,200/yr |
Step-by-Step Action Plan
- Stop Talking to Your Personal Agent: Do not mention the rental. If the claim hasn’t been filed, stop.
- File with the Platform: Open the claim immediately through the Boatsetter/GetMyBoat app. Rely on their commercial insurance ($1M liability usually provided).
- [IMAGE: Screenshot of the Boatsetter claims dashboard showing ‘Report Incident’ button]
- De-list or Upgrade: You have two choices. Take the boat off the site immediately to save your personal insurance, OR cancel your personal policy and buy a “Charter/Rental” policy from a broker like Charter Lakes.
- Inspect After Every Trip: You need time-stamped photos of the prop and hull before and after every rental. Without the “After” photo taken immediately, the platform insurance will deny the claim as “pre-existing” or “wear and tear.”
FAQ
Does my Umbrella policy cover me if the renter kills someone?
Likely not. Your personal umbrella follows your underlying policy. If the underlying boat policy excludes commercial use, the umbrella usually drops coverage too.
Can I just say a ‘friend’ was borrowing it?
That is insurance fraud. The adjuster will ask for the “friend’s” name. If they find a Venmo transaction or a rental agreement, you face felony charges.