What is boat liability coverage?

How does liability coverage protect boaters?

Having the proper coverage while boating can safeguard your assets in case you're financially responsible for someone else's damages or injuries. Liability coverage on your boat policy is comprised of the following:

Bodily injury liability

Bodily injury liability coverage can cover injuries to others if you're liable in an accident, including an injury to a water skier or someone swimming near your boat or watercraft. Coverage typically extends to expenses such as medical bills, rehabilitation, and hospital stays.

Property damage liability

It only takes seconds of distracted boating to make contact with another watercraft or structure. With property damage liability coverage, your insurer may pay for damage to another person's dock, boat, or property, up to your coverage limit. Property damage coverage may also help pay to remove your boat if it sinks, and for fuel spill mitigation if oil or fuel accidently leaks from your watercraft.

Do you need boat liability coverage?

Boat insurance is currently required in only three states: Arkansas, Utah, and Hawaii (for vessels greater than 26 feet in length). While you can hit the water without boat liability coverage in 47 states, you may need to carry minimum liability coverage if you dock your boat at a marina. Boat insurance policies are generally inexpensive and can provide financial protection if you're found legally responsible for personal injuries or property damage. Typical scenarios involving a liability claim might include:

• Damage to the marina's dock or pier
• Making contact with another boat
• Collision with a swimmer or water skier
• An injury to a passenger on your boat or another boat

How much boat liability insurance do you need?

Like auto liability coverage, you can choose your boat liability coverage limit, from your state's minimum limits up to $1,000,000, depending on your insurer. Learn more about boat insurance requirements in your state.

Carrying the right amount of liability coverage can be critical if you're liable for damages to another boat or injuries to another boater. Consider selecting the liability coverage limit that best covers your net worth, which you can figure out by adding up the value of your savings and investment accounts plus the equity you have in your home, vehicle, boat, and other assets.

Keep in mind, as your liability limit increases, so will the cost of your boat policy. However, the difference in price between the minimum liability limit and $100,000 in coverage may be minimal.

Does my homeowners policy cover accidents on the water if I'm liable?

Your homeowners insurance policy's personal liability coverage may pay for damages and injuries you cause while boating in certain circumstances, up to your coverage limit and depending on your policy. Be sure to check with your homeowner insurer to confirm the amount of liability coverage, if any, that they will provide.

Get liability coverage for your boat