Boat Insurance: How Coverage Varies Among These 3 Watercraft Types

31 March 2015
 Categories: Insurance, Blog


Boat insurance providers, like The Flechsig Insurance Agency Inc, offer a wide variety of policies and coverage. They can cater to the needs of those whose marine activities are strictly for pleasure, as well as to those who require coverage for marine-based commerce, and many more.

For those who have just recently purchased a watercraft vehicle, you might think of boat insurance as something of a commodity, and that relative to price, one policy is the same as the next. However, boat insurance varies per vessel just as car insurance does per automobile. This article outlines three types of insurance and how they differ from one another.

Sailboat Insurance

One of the ways that sailboat insurance differs from conventional boat insurance is with respect to what is known as the 'navigational territory'. This refers to the geographical area throughout which the vessel will remain insured. Just as car insurance is often only valid in the country in which it was originally purchased, marine insurance differs from one boat to the next.

Watercraft used for pleasure activities like wakeboarding tend to stay near the coast, but a sailboat, depending on its size and design, may venture from one side of the globe to the other. If you're contemplating buying, or have recently purchased, a sailboat, it is important you understand your insurance policy will be unique to that particular vessel and your sailing ambitions.

Jet Skis & Waverunners

As with other forms of marine insurance, policies that provide coverage for recreational watercraft like jet skis have liabilities and stipulations all their own.

Perhaps the most obvious aspect of these kinds of watercraft is the fact that they present considerable danger to the operator(s), as well as any passengers riding en tow. As such, boat insurance policies for this kind of marine recreational vehicles factor in the possibility of injuries and damage to yourself and to those in the vicinity.

Commercial Vessels

Boat insurance for commercial watercraft takes a number of different factors into consideration. For those looking to enter the boat rental business, you can anticipate that your insurance policy will include coverage for not only those who rent the vessel, but also the marina in which the boats are housed, and any damage that the hull might incur.

Commercial insurance also applies to those whose marine activities include things like guided fishing expeditions, day cruises, or sight-seeing tours. Insurance policies for these kinds of activities include coverage for passengers and crew, as well as personal property. Additionally, policies for these kind of marine businesses will provide indemnity liability in the event that one of your customers files a lawsuit against you.

In some cases, boat insurance can be even more complex than automobile insurance, and these three classes of policies illustrate precisely how coverage can vary from one vessel to the next.