The Importance of Boat Insurance
A Insurance Article Contributed by Andrew Whitehead
Is Boat Insurance Necessary?
If your boat is worth owning, then it is worth buying insurance for it. In some countries, such as Mexico, it is a legal requirement. Even if it is not, insurance brings peace of mind. When you go out to enjoy your boat, you do so to leave your cares ashore. The last thing you want is to be worrying about the consequences if you and your boat are involved in an accident. Boat insurance protects you at the very least against accidents, against vandalism, and covers you against liability.
What Does Boat Insurance Cover?
This depends on your Insurance needs, and they differ depending on the type of boat you own, where you use your boat, and what you use it for. When you ask your insurance company for a quote, it should explain in detail what is covered and what is excluded. As a minimum your insurance should cover Physical Damage, Perils, and Liabilities.
Physical Damage to Your Boat
Your insurance must cover physical damage of your boats hull, the sails if you have them, and any machinery, furniture, equipment, or fittings normally used on the boat.
Insurance Against Perils
Perils that should be covered by your insurance are damage to your boat through vandalism or malicious mischief, and ideally damage occurring from defective workmanship to your boat.
Insurance Against Liabilities
Your boat insurance must also be protect you from liability losses. This covers you if you damage another boat, pontoon etc., and most importantly for bodily injury or even death of a third party resulting from negligent operation of your boat.
Depending where you use your boat, you may need insurance against other liabilities. In the USA for instance, Federal and state laws subject boat owners to liability for the containment, clean-up, and environmental damage from an unintentional discharge of oil or fuel caused by your boat sinking, being involved in a collision, running aground, etc.
Other Things That May Be Included in Boat Insurance.
Most insurance policies will include cover for a boat trailer against physical loss or damage. Many will include cover against medical expenses if you or crew member are injured or taken ill while on board. If so, ensure that this includes injuries sustained while boarding or leaving your boat.
Some boat insurance policies will include compensation liability for injury to people employed by you to do work on your boat. This does not usually apply to boat yard workers, only those hired directly by you.
You may also be offered Salvage Assistance with your insurance. This generally covers you for the full cost of salvage up to the insured value of your boat. Though salvage demands are usually only in the range range of 5% to 20% of the boat's value they have been known to hit 100%, especially on smaller boats. If this is offered, make sure that it is in addition to any payments made for repairs to your boat.
Other popular boat insurance extras are cover against damage by uninsured boat, cover against loss of personal property, and cover for your fishing equipment.
