What it is
Boat insurance is a type of policy that protects you from liability and losses suffered by damage incurred during the use of your boat. In exchange for a premium, the insurer agrees to reimburse you for the cost of such damages.
Who it is for
This type of insurance is intended for owners of boats. Both commercial-use and personal-use boats can benefit from insurance coverage.
How it works
When applying for boat coverage, the insurance company will ask you a series of questions about your boat, its intended use, your personal boating history, and other factors. Depending on the degree of risk you present, you will be assigned a premium, which is a payment amount that you will periodically submit to the insurer.
In the event of a loss that is covered by your policy, you will contact the insurer. They will examine the damage and reimburse you for the costs incurred.
Different types of coverage in existence
Boat policies are not “one size fits all”, as there are many types of coverage out there. Some of the most common policies cover damage to your boat, damage to others’ boats, fuel spill liability, damage to property caused by your boat, and bodily injury of people on your boat or boats with which you collide. Optional coverage can be purchased for towing options, fishing equipment, issues caused by ice, etc.
Boating while insured can bring peace of mind, knowing that the cost of any mishap that should occur while on the water will be covered by the insurance company. Many jurisdictions require that boats have some form of liability insurance, so having a boat insurance policy will keep you compliant with local regulations. It’s an effective way to protect your investment – and yourself from any accidental damage your boat does to someone else’s property.