Boat or Marine Liability covers someone when you operate it
What Is Boat or Marine Insurance?
Do you want to know more about boat insurance in Canada and how it differs from marine insurance? Boat and marine insurance are alike. However, regular boat insurance is for recreational boaters, whereas marine insurance deals with commercial vessels.
Boat insurance aids in covering your losses during an accident when injuries and property damage occurs, 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; you have choices regarding your deductible prices and liability limits.
If you live in Canada and you’re among those fortunate enough to have your boat, you know that it’s a satisfying yet often costly investment. Therefore, you may want to purchase boat insurance. For whatever reason, the idea of going into trouble with your boat seems to be very much unlikely. However, the sad reality of life is that mistakes happen, and accidents occur. So really, we should think about keeping and protecting a boat the same way we do for a car. That is why it is essential to have your boat covered.
What is boat insurance?
Boat insurance is a policy contract that provides financial protection for the loss or damage of your boat and liability, regardless of whether the boat is on land or water. The policy only provides protection provided the loss or damage meets the coverage limit, peril clause, and other exceptions included in the policy agreement. Peril is the cause of loss, and the peril clause is the policy coverage based on the type of peril. However, for boat insurance, the types of perils considered are accidents resulting from weather-related incidents, collisions with other boats or watercraft, submerged objects, fire, theft, and vandalism.
Your boat insurance may cover the following:
> Replacement or repair
If your boat was damaged or completely wrecked due to the perils mentioned above, your boat insurance will pay for the expenses incurred for repairing or replacing it with a new one. The repair or replacement also includes the boat machinery, hull, or anything that is permanently attached to the boat. For instance, the boat insurance will cover repair expenses of the broken parts if they are damaged due to an accident, provided the type of peril is included in the peril clause.
Whether you were injured alone or with another person on your boat, the insurance will cover the medical expenses incurred. For example, because of a tide change, your passenger broke his arm while trying to support himself when falling to the ground. In such a scenario, the boat insurance will pay for the expense incurred for the treatment. Boat insurance covers the third party because it features a protection and indemnity section that covers your legal obligations to the third party.
Boat insurance features a physical damage section that includes protection and indemnity cover for damage or loss of your personal property and third party belongings. That is if thieves vandalized your boat while in the process, your passengers’ luggage was damaged. The liability coverage will pay for the damages.
> Underinsured watercraft
The boat insurance will cover the injuries caused by other boats that are either underinsured or not insured. For instance, if your boat collides with an underinsured or uninsured watercraft, your boat insurance will also pay for the injuries or expenses incurred for treatment.
Coverages not included
Your boat insurance will not cover if the damage or loss is due to the following reasons:
- Suppose the damage or loss happened when you sailed off the limited waters or out of the geographic region. Therefore, it would help to know or inquire about your boat insurance navigation limit before sailing because the farther you cover, the more risks also increase.
- Inappropriate use of the boat: for instance, your boat insurance will not cover damages or loss if you use it for competition races because they are termed intentional risks.
- Poor maintenance: Poor maintenance increases the risk of your boat prone to accident, sinking due to waterlogging, spillage and infestation of insects, animals, and molds and waterlog. Moreover, poor maintenance also makes parts of the boat like the engine, hull, and anchor faulty. Therefore, if loss or damage results from poor maintenance of the boat, the boat insurance will not cover the expenses incurred to replace or repair it.
- Damages or losses incurred due to the deterioration of your boat will also not be covered. Therefore, it is your responsibility to maintain your boat to avoid inconvenience when the need arises.
- If the boat was involved in an accident, but the damage or loss of another person was sailing it and is not included in the policy contract, boat insurance would not cover it. It also may not be covered if the owner was sailing under the influence of substances like alcohol, marijuana, or cocaine.
Types of insurance
There are many types of boat insurance; however, the choice of your insurance should be based on wide coverage that meets your comfort, legal, and contractual obligations and risks exposure. Therefore, below are types of a private boat owned insurance you might settle for:
Third party insurance
This type of insurance policy provides financial coverage for any loss or damages to another individual’s watercraft.
Marine hull and Liability insurance
This insurance covers loss or damage to the boat, liability and also includes third party cover. However, this type of insurance is recommendable for commercial boats because it provides comprehensive coverage.
Homeowner boat insurance
This type of insurance provides coverage for loss or damage of your boat while at home, but not in marine waters.
This type of insurance provides the policyholder financial protection against loss of liability and damage to the boat.
Cost of Boat Insurance
Boat insurance might cost you at least $300 or less than $1000 on the higher end per annum. However, this depends on several factors that might make its price increase. These factors include:
Cost of boat insurance
Type and the size of the boat
Depending on the type and model standard and size, it may attract higher or lower premium rates.
Purpose of the boat
The purpose of the boat also has an impact on the cost of the insurance because of the risks related to its purpose.
Navigation or sailing geographical limit
The further the distance you cover from the land, the risks also increase, thereby attracting higher premium rates.
Your driving experience also deters the cost of boat insurance. For instance, the insurance cost tends to be higher if a teen drives the boat than an adult because of the risks involved relating to the driving experience of an individual.
Claim history, driving record, and credit score
Your claim history, driving record and credit score may negatively or positively impact the cost of your boat insurance.
> Information needed for application
Before signing up for an insurance policy, you should be aware of the vital details that will be required about you and the boat you intend to insure. The significance of having detailed information about you and your boat is to help the insurer decide whether you are qualified for the policy or not. They include the:
- Value of the boat
- Age of the boat
- Mileage covered and the horsepower of your boat
- Boat’s serial number
- Intended use or purpose of the boat
- Condition of the boat. This is essential to determine whether it meets the standard regulations of the boat
- Type of water the boat will operate on
- Size of the boat
- Type and the model of the boat
- Your residence address
- Ownership documents and whether it is privately owned by an individual or more
- Your marine driving license
> Risk factors
Travelling on the water is much riskier than on land, and a lot of boating disasters are primarily contributed by the following factors.
- Failure to adhere to the marine rules and regulations.
- Driving under the influence of substance abuse, like alcohol and more.
- Careless and overspeeding.
- Driving experience.
- Weather-related issues like tornadoes, windstorms, and many more.
> Ensure boat safety
To ensure your and the boat safety while driving on the water, it would help if you employ the following tips and make them your rule of thumb. They include:
- Wear a safety jacket and also consider having extra or plenty of them for other passengers
- Ensure you install a fire extinguisher on your boat and put it in a place that is easy to access and visible for emergency use
- Always carry a first aid kit with you, tool kit, navigation lights, flashlight, radio and freshwater supply. All these tools are essential when an emergency arises.
- Ensure before sailing, confirm first about the weather condition, the engine oil and its condition, fuel tank level or reading, exhaust system if it has a leak and the steering system of your boat. This is significant because it helps decide if the weather and the boat condition is safe for sailing or not.
- Before heading to the sea, always tell or let someone know where you are headed and when to expect you. Letting someone know your whereabouts will help them rescue you if an emergency arises.
- Do not overload the boat and ensure the load—the cargo and passengers—is evenly distributed. For small boats, passengers should not stand up and avoid shifting their position suddenly because of increased risks of capsizing.
- Adhere to the distress signal from the other boating signals and ensure you follow the marine traffic rules and regulations.
- While sailing on shallow water, be careful and avoid high speed and avoid high speed because of the presence of underwater objects near the surface.
- If you are drunk or under any influence, you should refrain from operating the vessel because of impaired judgement.
Besides providing basic coverage for medical expenses, liability, underinsured boats, repairs and replacement of your boat, you may sign up for more premiums for comprehensive coverage. This additional coverage includes:
For instance, if you had an accident, mechanical failure, or fuel shortage while on the sea, your boat insurance will pay for the cost incurred for emergency towing.
Did you know that spilling fuel or sailing under the influence is illegal? It also attracts a huge penalty. Therefore, for such an incident, you should subscribe to legal protection premiums to cover you if such incidents arise.
Your boat might spill fuel on water due to a faulty fuel tank or accident. Therefore, the expenses used for cleaning the spillage on the water will also be covered by the insurer.
Transportation of wreckages
Many boat insurance covers the expenses of transporting broken or damaged ship wreckage from the sea to the land. However, this varies across individual insurers. Hence you should confirm if it is included in the policy.
The basic insurance excludes replacement or repair of fishing boat equipment upon damage or loss within your boat because they are not permanent attachments of the vessel. Therefore, before signing up for a policy, you should inquire if the insurer covers fishing equipment.
Instead of insuring your boat with a homeowner insurance policy, you should opt for a marine insurance policy that offers comprehensive cover that will satisfy your needs. However, you should consider many options provided by individual insurers to find the best that is comfortable and versatile for you because premium services carry with individual insurers.