No matter where you are or what you’re doing, stuff happens. That’s true in recreational boating, where pitfalls may suddenly appear during a leisurely day. Whether the stuff happens as a result of fog, a careless fellow boater, or a quick drop off in water depth, you want the assurance you have the right insurance to cover the resulting damages.
Pre-season is the ideal time to review what your insurance policy covers. Alone or with your insurance broker or agent, assess whether last year’s coverage fits this year’s needs. Did you increase your family, upgrade your boat, decide to live on the boat, make plans to boat out of state, and/or change to a marina in unfamiliar waters?
A marine policy should primarily protect you and your passengers while covering the value of your nautical investment. Should the unthinkable happen, you need a policy that shields you from liability, protects from losses, and replaces what you had.
Boaters sometimes think that whatever coverage their lender and boatyard require is sufficient. Beware that type of reasoning, or you’ll see one or both of them get paid after an incident while you may get zip!
Discuss with your broker/agent about the limitations on coverage the policy provides: will you be “made whole” if your vessel is a total loss and covered for all expenses in the case of harm to those aboard? The more a policy includes, the more expensive it is, so when you’re talking the price of a policy, take into consideration that a reduction in coverage potentially opens you up to more out-of-pocket expenses and perhaps personal liability.
Another reasoning trap boaters sometimes fall into is “just adding” their boat to their home and auto insurance. Some unique situations arise on the water, so dealing with an experienced maritime insurer will usually result in more comprehensive coverage and knowledgeable guidance if a mishap occurs. Is towing included or do you need to buy a separate policy with a towboat company? Does the coverage extend to the dock, say if someone slips and falls while boarding or getting off during a refueling stop?
Once the discussion about coverage for people aboard and the vessel itself are answered, discuss limits placed on liability to other boats, docks, or people if the stuff that happens affects them as well. Policies usually have a deductible, requiring you to assume the first X dollars of liability, and a ceiling of coverage that lets the insurer off the hook for any more than Y dollars per incident or in total. Consider how much risk you’re willing to assume before choosing a policy with a high deductible or low liability maximum.
Not every boater will be as diligent as you. Too many are out on the water without insurance, so discuss adding uninsured boater coverage to your policy.
