Why You Need Boat Liability Insurance

Most boat owners do not consider buying liability insurance on their boats. This is unfortunate, because boating accidents occur frequently, especially for new boat owners who are unaccustomed to steering a boat. Even seasoned boat owners probably spend less time boating than they do driving, and if they live in a northern climate, their boating time may only occur during half the year. As such, most boat owners are less adept at boating than they realize. While these same boat owners would never drive a car without buying liability insurance first, they will often purchase and operate a boat without even considering such coverage.

Liability insurance protects the owner of a vehicle from being held financially responsible for physical damage that he or she causes to another vehicle, property or person. Boar liability insurance operates much like liability insurance for a car or any other vehicle; should the boat owner accidentally hit another boat, dock or other property, his or her liability insurance will pay the costs of repair and/or replacement to that boat or property.

Boat liability insurance coverage is offered by a majority of insurance companies. There is usually a small deductible and its amount will vary depending on how much is paid for the policy. In some cases, the deductible amount itself will decrease for every year that the boater remains free of claims. Coverage amounts will also vary depending on the size and speed of the boat involved. Obviously, a small fishing boat with an attached 20 horsepower outboard motor will require a significantly lower coverage amount compared to a yacht that has an internal 1000 horsepower motor.

Boat liability insurance is not mandatory, and this is why many boaters do not purchase such coverage. However, stories about boaters getting into boating accidents abound. Even in cases where the boat owner was not intoxicated or otherwise negligent, boating accidents occur quite easily because boats are never truly stationary when they are on water. Even a boat that is tied down to a dock and/or anchored can become detached from its holdings. Stormy weather and mechanical issues can easily result in a boat colliding with another boat or damaging a dock. The costs that accompany such damage can be huge, especially if there are neighboring yachts or extensive docks and storage facilities located nearby.

Because there are many reasonably priced boat liability insurance policies on the market, it simply does not pay to go without such coverage. For a boater's peace of mind, obtaining boat liability insurance is a must.