insuranceBoat or Marine Liability

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What Is Boat or Marine Insurance?

Do you want to know more about boat insurance in Canada? And how it differs from marine insurance? Well, boat and marine insurance are alike, but regular boat insurance is for recreational boaters, while marine insurance deals with commercial vessels.

Boat insurance aids in covering your losses during an accident when people are injured and properties are damaged, depending on the type of policy you purchase. While your homeowner’s insurance may cover a small boat under specific circumstances, other kinds of boats need actual boat insurance to be covered. Like other sorts of insurance, you have choices regarding your deductible prices and liability limits.

If you live in Canada and you’re among those who are fortunate enough to have your own boat, you know that it’s a satisfying yet often a costly investment. You may want to purchase boat insurance in Canada. For whatever cause, the idea of going into trouble with your boat seems to be very much unlikely. But the sad reality of life is that mistakes happen, and accidents occur.

Really, we should think about keeping and protecting a boat the same way we do in a car. That is why it is important to have your boat covered with an insurance policy.

Protecting Your Boat

​If your boat has been financed, docked at a neighbourhood marina or deposited in your private boathouse, insurance can protect your liability dangers. While boat insurance is not compulsory, it can cover damage, liability and other unforeseen events. So having boat insurance in Canada can definitely do you more good than harm.

How Boat Insurance Protects You

Your Boat

It helps protect your boat, the motor(s), boating gear and accessories against covered risks like accidents, vandalism, theft and more.

Personal Belongings

Helps protect your (and your passengers’) garments, personal things, and sports stuff while onboard against covered risks like theft, damage and more.

Liability Claims

When you obtain boat insurance in Canada, it helps protect you financially if you injure an individual or harm another person’s boat or property while moving your boat or another watercraft you have authority to use.

Kinds of Insurance

For a privately-owned recreational boat, your insurance choices include:

  1. Hull and Machinery Insurance – grants damage coverage up to your boat's total loss and attached equipment.
  2. Protection and Indemnity – obtaining boat insurance in Canada of this type grants liability coverage that covers property damage and bodily injury. It also gives help with investigating a disaster and developing your case. If you happened to be at fault, it reimburses up to the limit stipulated in your policy.
  3. Medical Payments – covers incidental hospital expenses due to an incident on your boat.

How Much Does Boat Insurance Cost?

The average yearly cost of boat insurance in Canada is a few hundred dollars, though it can reach over $1,000 annually, depending on the type of boat and your character profile. 

The type of boat, its length, and its anticipated usage will mostly dictate your boat insurance prices. Whether you have a speed boat, a small fishing boat or a yacht, it will have a huge difference in how much you pay.

On average, boat insurance charges usually range from $200 to $500 annually.

What Insurers Need to Know

The information that an insurer requires about a boat and its operators is similar to the type of information it needs to provide car insurance coverage. Hence, getting boat insurance in Canada would require information such as:

  • The boat's type, length, and value
  • Its market value and condition – your insurer may request a survey if your boat is 15 years old or more.
  • How often the boat is used, for what reasons, and how and where it is placed.
  • The waters you usually navigate and if you ever lease your boat.
  • If the operators are affiliates of the Sail Canada or Canadian Power and Sail Squadrons.
  • The experience, loss and claims records of the owner and the operators

This is the information that you must provide when getting boat insurance in Canada. If you also own recreational properties, you may have outbuildings, such as a garage, a boathouse, or a shed. You may need extra coverage to ensure that these buildings are fully protected. Be aware of coverages and exclusions.

Six Steps to Ensure your Boat's Safety

  1. Keep your Pleasure Craft Operator (PCO) card with you always. Federal regulations stipulate that anyone who operates a boat with a motor in Canada must have a PCO card.
  2. Before boating, monitor the weather forecast. Ensure that there are no dangers, such as approaching thunderstorms or high winds.
  3. Plan ahead of time. Whether or not you already have your boat insurance in Canada, you must know your destination. Getting lost on the waters is no fun. Bring a map and notify someone where you are going and when you expect to return.
  4. Fill up the gas tank. Ensure that your boat has sufficient fuel for your outing. Keep spare parts, tools, a first-aid kit and other safety equipment – such as whistles, paddles, and flares – on board.
  5. Ensure that every individual has a lifejacket. The law obliges boats to have Canadian-approved lifejackets or PFD of a suitable size for each person on board. Make sure your PFD is comfortable to wear and allows for easy mobility. Check that seams are intact and can be easily fastened; belts and zippers work well. Remember, bright colours are easier to find in an emergency.
  6. Be responsible enough. Boat sober. Boats and booze don't mix. Sun, wind, noise, vibrations, glare, and motion can intensify the effect of alcohol on your vision, balance, coordination and judgment. Don't let a drunk person operate a boat.

Boat insurance, specifically boat insurance in Canada

Whether you're navigating the waters, relaxing on the deck of a houseboat, or bobbing aimlessly under the sunshine, you want to ensure your boat is protected. Regardless of what kind of boat you have for enjoyment, from fishing boat to yacht insurance coverage, we offer the protection that you need to enjoy every moment on the water.

A boat policy covers...

  • Lightning, hail and windstorm damage
  • Fire, explosion, burglary and vandalism
  • Vermin damage
  • Collision or Impact

Coverage that reaches beyond your boat

  • Hospital & Medical/Death/Funeral benefits
  • Pollution and wreck removal
  • Emergency towing and loss of use
  • Personal effects

Want to know more about optional coverages?

Navigational extension

Offer additional coverage for sailing to the southern U.S., Caribbean and Bahamas.

Incidental use

Added liability coverage for the exclusive use of watercraft to entertain clients or for charity and volunteer work.

Increased loss of use

Policy coverage for the cost of a replacement boat, taxi, rental car, or public transportation while your boat is being fixed following a covered claim.

Guaranteed replacement cost

An upgrade from agreed value/replacement cost provides a new model, even if it costs more after a covered claim.

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