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05
2022

How Does Boat Insurance Work?

Do I need boat insurance?

Boat insurance is a crucial piece of your boating experience. It protects you, your passengers, and your boat from accidents and equipment failure while covering damage to other property in the case of an accident. Boat insurance could make all the difference if something goes wrong on the water, so getting the right coverage for your needs is important.

Who needs boat insurance?

Boat insurance is designed to protect your boat and its passengers. Whether you own a small motorboat or an enormous yacht, insurance can help protect you from the financial burden of an accident.
There are many types of boat insurance, each offering different coverage options and exclusions. Most policies include:

  • Liability Coverage – This pays for any injuries or property damage caused by your boat. It also covers medical expenses if someone is injured on board your vessel.
  • Personal Injury Protection (PIP) – PIP pays medical bills for those injured in a boating accident; it may also cover lost wages if the victim has to miss work due to their injury.
  • Theft Protection – This also covers personal belongings stolen from inside boats or dockside storage facilities.

What does boat insurance cover?

Boat insurance covers the damage that may occur to your boat and others’ boats. It also protects you from legal issues if someone is injured on your boat.

Boat damage: The most common type of coverage is a liability policy that will pay for damages incurred by your own vessel or another vessel while it’s being operated by you or anyone else within the same household. This can include a collision with another vessel, running aground and damaging property on land or in water, or falling overboard and hurting yourself (or someone else). If another boat causes damage to yours, there’s usually an exclusion clause that says they’re not responsible for any damages caused during an accident they were involved in themselves—but this won’t apply if they were at fault.

Personal injury: If you injure someone else while operating the boat under normal conditions (i.e., not racing), then their medical costs will be covered by personal injury protection (PIP), which comes standard with almost all policies and pays up to $10 million per person annually for injuries sustained through maritime activities like boating and fishing. This includes hospitalization expenses related directly to these injuries such as surgery fees; rehabilitation services, including physical therapy visits paid directly out-of-pocket, are also covered under PIP so long as they relate directly back to those initial injuries sustained during maritime activity-related incidents such as accidents involving boats/boats hitting other vessels etc.

Common boat insurance claims

The most common things claimed include:

  • Theft
  • Damage to other boats and docks
  • Damage to property, such as bridges and buildings.
  • Damage to the boat itself, including its engine, propeller or hull.
  • Damage to your vessel’s deck (the platform you stand on while sailing). It’s also known as a “deck plan.” And if you have a cabin on board your boat—that’s its own type of insurance too!

How much does boat insurance cost?

When purchasing boat insurance, you should consider a number of factors. These include the type, size, and age of your boat; the area where you plan to keep the vessel; and whether or not it’s being used commercially.
While premiums can vary widely based on these factors and more, they typically fall into one of three categories:

  • A-rated – boats with few or no claims over the past five years
  • B-rated – boats with some claims in recent history
  • C-rated – boats with many claims in recent history

Nickerson Insurance is Your Source for Boat Insurance in the South Bay

Knowing how boat insurance works is important to choose the right option for your needs. It’s also important to understand how much it will cost and how much coverage it provides. If you need help navigating the process of getting covered, contact us today!

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