Insuring a boat is unique. Although parts of this insurance are similar to auto coverage, it is an entirely different concept given the environment that boats are operated in. Boat insurance has two basic types of coverage. There’s physical damage and there’s liability coverage.

Physical Damage Coverage

This coverage insures the boat for accidental damage to the watercraft, its machinery, and the propulsion system. Not only does it cover the hull, but it also insures engines, sails, and anything on the boat that’s needed to operate it.

Liability Coverage

Your liability coverage insures you for property damage or personal injury that you caused to third parties that result from the operation of your boat. If you are sued on a liability claim, your liability coverage even pays for your defense attorney, court costs, and any judgment rendered against you up to the amount of your policy limits. If an accident is serious, you’ll want to be sure that your liability insurance covers the cost of removal of your boat if it’s wrecked and a hazard to navigation. You’ll also want to be covered for oil or fuel spills.