The Importance of Liability Coverage in Boat Insurance

For many, owning a boat is a dream come true—a symbol of freedom and a means to explore the water. However, with boat ownership comes significant responsibility, especially regarding insurance.

Among the various types of coverage available for boat owners, liability insurance is essential to help cover damage you may cause with your boat. This includes damage to other boats, docks, and marina facilities and injuries to other people not on the insured vessel.

Key Benefits of Liability Coverage

Boating accidents can result in significant financial liabilities, especially if they involve injury to others or damage to valuable property. Liability coverage can help protect your financial assets by covering the costs associated with these damages, including legal fees, settlements and medical bills, up to the policy’s limits.

Scenarios Where Liability Coverage is Invaluable

Liability insurance may step in to help cover costs after the following:

• Collision with another boat—If you are at fault in a collision where another vessel is damaged, liability coverage can pay for repairs to the other vessel and any medical costs of injured parties.
• Injuries on board your boat—Should another person be injured on your boat, liability insurance may help cover their medical expenses and any legal fees if they sue.
• Environmental damage—Boating accidents can sometimes result in fuel spills or other environmental damage. Specific liability policies may help cover the cost of cleaning up these spills, which can be extensively regulated and expensive.

How Much Liability Coverage Do You Need?

Determining the right amount of liability coverage depends on several factors, including the type and size of your boat, the boating activities you engage in, and your financial situation.

Your agent can help determine the appropriate amount of boat liability coverage for your situation.

Choosing Boat Insurance

When selecting a boat insurance policy with liability coverage, consider the following:

• Policy limits—Ensure the coverage limits reflect your potential risk exposure and asset value.
• Inclusions and exclusions—Understand what is included and excluded in your liability coverage.
• Deductibles—Some coverage may require a deductible payment before insurance kicks in. Higher deductibles can reduce your premium cost but mean more out-of-pocket expenses in the event of a claim. Choose a deductible that balances affordability with risk.

Contact Us

Contact Goal Insurance in Taylorsville, Utah, to get boat insurance tailored to your needs at favorable rates.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.