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Opening a dive shop comes with real risks — both in the water and on land. Equipment failures, boat collisions, and onboard falls can all lead to serious claims. And if you don’t have the right insurance, they can cost your business.
One insurance study reported that 34% of claims against dive centers were for trauma and 34% for decompression illness. Whether a tank gets damaged in transit or a diver needs emergency treatment after surfacing, dive shop business insurance protects your shop from liability for gear damage, medical incidents, and other losses.
Learn about the core coverage types and the top providers that understand the unique challenges of operating a dive shop.
Do Dive Shops Really Need Business Insurance?
Yes, dive shops do need business insurance — and not just because it’s often required by law. Dive shops face high-risk scenarios daily, from hands-on training to open-water dives with rented gear.
If a student slips and falls during a shore entry or a regulator set goes missing after a rental, it can lead to costly claims. Dive shop business insurance helps cover those scenarios so you’re not left paying out of pocket or pausing operations.
But how do you know which policies your shop needs? Knowing common coverages and how they apply to your daily risks can help you choose the right protection.
Types of Dive Shop Business Insurance
Running a dive shop isn’t like operating a typical retail store — you’re dealing with underwater instruction, boats, and high-value gear. You need coverage that fits how your business operates to stay fully protected.
Here are the types of insurance to consider for your dive shop:
General Liability Insurance
General liability insurance protects your dive center from third-party claims involving bodily injury, property damage, and associated legal costs. For example, if someone trips over a gear bag left near the entrance or a staff member drops a customer’s tank during loading, this coverage can help cover medical bills, repairs, and attorney fees.
Professional Liability (Errors and Omissions)
Professional liability insurance coverage protects scuba shops and instructors from claims of negligence or improper instruction. If a student claims they were injured due to poor guidance during a certification class, this policy can help cover legal defense costs, settlements, or judgments.
Commercial Property Insurance
Commercial property insurance protects your dive shop's physical assets — like buildings, signage, dive gear, compressors, and other inventory — against covered events like fire, theft, vandalism, and certain weather-related damages. While your landlord’s insurance may cover the building itself, it typically doesn’t protect your business’ contents or equipment.
Workers’ Compensation
Most states require workers’ compensation if you have employees. It helps cover medical bills and lost wages when someone gets injured at work, whether they strain a muscle loading tanks, fall during store cleaning, or get hurt during a training session. Without it, you risk fines and liability for workplace accidents.
Commercial Auto Insurance
If your dive shop uses trucks or vans to transport gear, staff, or customers to dive sites, most personal policies exclude claims for business use, leaving you on the hook for costs if there’s a transportation-related accident.
Commercial auto insurance protects your business in these cases and is often required if the vehicle is titled under the business name or regularly used for operations.
Inland Marine Insurance
Standard property insurance doesn’t protect equipment once it leaves your shop. Inland marine insurance covers dive gear and tools while in transit or at off-site locations, like boat dives, remote classes, or events. If regulators, compressors, or underwater cameras are damaged, or stolen en route or at a dive site, this coverage helps pay for repairs or replacements.
Boat Insurance (If Applicable)
If your dive shop owns a boat, you’ll need commercial boat insurance to cover it properly. General business policies stop at the shoreline — if you own a dive boat, a separate marine policy is required to cover damage, liability, and passengers. This is critical for dive charters and training trips.
What Insurance Does Not Cover
Insurance doesn’t cover everything. Knowing the typical limits helps you avoid denied claims and plan for the unexpected. Dive shop business insurance policies may:
- Exclude intentional damage caused by owners, staff, or customers
- Deny claims connected to illegal activity or unlicensed operation
- Omit normal wear and tear on gear or equipment
- Cap payouts based on your policy limits and deductibles
Review your policy details closely and ask your provider about exclusions, limitations, and gray areas before you need to file a claim.
5 Top Dive Shop Business Insurance Providers
Dive shops face risks that standard business policies don’t always cover. These five providers offer coverage for diving operations, with policies that protect your team, your stock, and your customers.
1. DAN (Divers Alert Network)
DAN provides liability and property insurance tailored for dive shops and professionals. Coverage options include general liability, professional liability (for instruction and supervision), and equipment protection for rented or owned gear. Policies also extend to hosted events and dive travel.
2. PADI-Endorsed Insurance (Via Vicencia & Buckley)
PADI partners with Vicencia & Buckley to offer insurance programs tailored to dive instructors and facilities.
Coverage includes professional and general liability, gear rental protection, premises liability, and options for staff and independent contractors. Policies meet PADI certification standards for active professionals and retail dive centers.
3. Hiscox
Perfect for smaller dive operations, Hiscox lets you build a custom plan with general liability, professional coverage, and gear protection. You can also add equipment coverage and income interruption, which is great for dive shops renting out or storing expensive gear.
4. The Hartford
The Hartford’s Business Owner’s Policy (BOP) combines general liability and commercial property insurance, ideal for dive shops operating retail storefronts and maintaining expensive gear. Add-ons include income interruption and cyber coverage for online shops. Fire, theft, and coastal storm damage are all included in these property policies.
5. Nationwide
Nationwide offers commercial insurance options for gear-intensive businesses like dive shops. Their inland marine coverage protects expensive equipment in transit or off-site. Commercial property insurance covers damage to buildings, signage, and dive gear caused by theft, fire, or storms.
Dive shops with multiple liability exposures can also explore umbrella policies, which extend liability limits across other policies.
Protect Your Dive Shop Before Trouble Surfaces
Between classes, charters, rentals, and high-value gear, dive shops juggle a lot each day, and every task comes with its own risks. The right dive shop business insurance helps cover big losses, but risk management starts with preventing problems before they happen.
Dive Shop 360 software works in the background to track inventory, manage rentals, and coordinate trips and training, keeping your daily tasks organized and under control. Integration with Smartwaiver adds another layer of readiness, letting you get the required forms signed before every excursion.
Protect your shop, your team, and your gear. Try the top-rated Dive Shop 360 to help simplify your operations and reduce risk.
