Whether your boat is used for leisure trips, fishing or water sports, accidents can happen on or away from the dock. Even if you follow best practices for your boating operation and business, there is the potential for someone to be injured on account of your boat. Watercraft liability insurance is financial protection in these situations, as a general liability policy doesn’t address bodily injury and property damage concerns.

The Coverage Needed

General liability policies are generally not inclusive when it comes to watercraft-related claims. These exclusions prohibit claims regarding property damage or bodily injury that took place during the use of the watercraft, during periods of maintenance or with general regard to ownership. This exclusion is held whether it was the boat operator or a supervised individual who was in control of the watercraft at the time of the incident.

The Purpose of Watercraft Liability Coverage

Watercraft insurance is an important layer of defense against property damage or bodily injury claims made against your watercraft. Those who are injured or experienced some form of loss can open a lawsuit against you and attempt to recoup thousands of dollars in compensation. Without liability insurance, any settlements or awards allowed by the court will be your personal responsibility. However, an insurance plan provides an allowable amount of funds to be used to address the losses claimed.

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