Boat Liability Insurance

Boating can be a rewarding leisure activity for many watercraft owners, particularly those living on or near the water. However, an unexpected lawsuit can quickly ruin what was meant to be a fun or relaxing trip. Fortunately, having boat liability coverage can help you get the reimbursement you need in case of third-party claims of bodily injury or personal property damage on or near your boat.

A local independent insurance agent can help you find the right boat insurance coverage. They'll get you set up with all the marine liability insurance and other types of coverage you need. But first, here's a closer look at boat liability insurance, what it covers, and why it's necessary.

What Is Boat Liability Insurance?

Liability coverage is a critical part of a complete boat insurance policy. Your watercraft insurance likely provides protection against physical damage to your vessel in the form of collision coverage, but this isn't necessarily the most expensive issue that could arise for a boater. 

Personal watercraft (PWC) owners must have liability insurance to protect against incidents that could affect third parties, including guests who may ride with you on your boat, other boaters, or anyone walking around the marina where your boat is docked. Liability coverage can reimburse you for medical payments to third parties in case of bodily injury as well as pay to repair or replace damaged or destroyed personal property belonging to others.

What Does Boat Liability Insurance Cover?

A boat policy that includes liability coverage can protect against losses associated with a number of common scenarios. These can include the following:

• Injuries to passengers on your boat
• Injuries to other boaters near your boat or at the marina
• Collisions with other boats, swimmers, or water skiers
• Collisions with a dock or pier

Boat owners need protection against potential lawsuits that could arise from any of these incidents. Without the proper coverage, you could be stuck paying out of pocket for medical treatments for injured parties, property repairs or replacements, and lawsuit expenses. 

Boat liability coverage can reimburse you for all these costs, including your legal defense, if you are sued. Coverage can pay for attorney, court, and settlement expenses.

What Does Standard Boat Insurance Cover?

A standard boat insurance policy should include liability coverage and several additional coverages. These often include the following:

• Collision coverage: Pays for damage to your boat, motor, trolling motor, or any permanent boating equipment from a collision with another object, regardless of fault. 
• Comprehensive coverage: Pays for damage to your boat, motor, trolling motor, or permanent boating equipment due to a non-collision event such as a flood or theft. 
• Personal property coverage: This can pay for damage, loss, or destruction to personal equipment such as tools, life preservers, anchors, and oars.
• Fishing equipment coverage: This can pay for damage, loss, or destruction to fishing equipment like rods, lures, nets, and tackle boxes.
• On-water towing and labor coverage: This can pay for the professional retrieval and clean-up of a disabled vessel out on the water.
• Medical payments coverage: This can pay for hospital and funeral expenses for you or your passengers.
• Uninsured or underinsured boaters coverage: This can reimburse you for expenses after an accident with another boater who has insufficient or no boat insurance of their own.
• Umbrella insurance: This coverage can increase your existing liability coverage to a limit of $1 million or greater to help protect you against especially costly lawsuits.

Hull coverage refers to having both comprehensive and collision insurance together to protect against physical damage to your watercraft, including weather-related damage and more. Having complete physical damage coverage can help you afford to repair or replace your watercraft after a devastating incident.

Is Boat Liability Insurance Required?

Boat insurance is currently only required in two states: Utah and Arkansas. However, it's typically necessary to get boat insurance regardless of whether it's required by law. 

If you finance your boat, your lender often requires boat insurance. If you dock your boat at a marina, you'll also likely be required to have a boat insurance policy. 

Further, even if you're a homeowner, boats usually aren't fully covered under a home insurance policy. So you'll probably need to get boat insurance if you own any of the following:

For certain types of boats, you may need a specialized policy, such as yacht insurance for more expensive vessels. A local independent insurance agent can help you get set up with the right policy.

What's Not Covered by Boat Insurance?

Boat insurance comes with various exclusions that are important to be aware of as a policyholder. Typical coverage exclusions are as follows:

• Intentional or malicious acts against others
• Damage from collisions with marine life
• Mold or mildew damage
• Typical wear and tear
• Weathering damage
• Insect damage

Be sure to review your specific boat insurance policy to understand its exclusions. Your independent insurance agent can also help you determine what's not covered by your boat insurance policy.

How Much Does Boat Insurance Cost?

Insuring a boat is typically pretty affordable for many watercraft owners. However, the cost of boat insurance can vary widely depending on many different factors, including the following:

• The make and model of your boat
• The engine size and length of your boat
• Your boating experience
• Your claims history
• Your location
• How your boat is used and stored

The insurance company you get to underwrite your boat insurance and your policy's deductible can also impact its premium rate. An independent insurance agent can help gather boat insurance quotes from carriers near you.

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An Independent Insurance Agent Can Help You Get a Quote for Boat Liability Insurance

When it's time to get the right boat liability insurance for your vessel, no one's better equipped to help than a local independent insurance agent. These agents have access to multiple boat insurance companies, so they're free to shop and compare quotes and coverage options for you. 

They'll present you with policies that offer the best overall blend of coverage and cost. And down the road, your agent can help you update your coverage as necessary and even file boat insurance claims for you.