Boat Insurance Terminology - Part II

  • Covered Person: Any person or legal entity that is permitted to operate the boat by the owner who is also considered covered when operating the boat. This usually does not include a paid captain, crew, or employee, although coverage may be available.
  • Dinghy: A small craft used to service the insured boat.
  • Disappearing Deductible: If you do not have a claim since the start of the policy, your standard deductible will decrease each subsequent year until it disappears entirely.
  • Exclusion: Something that is not covered because the policy specifically states that it is excluded.
  • Insured Property: Any boat, trailer or other property identified for coverage in the terms of your policy. This property is protected against damage with in accordance with the policy’s terms.
  • Laid Up: When the insured boat is out of commission, and on land if the policy requires it.
  • Lay-Up Period: The period of time when your boat is laid up and out of use.  
  • Limit of Liability: The amount of coverage provided under your policy protecting against bodily injury and property damage to third parties.
  • Machinery: The system that is involved in making the boat operable.
  • Navigational Limits: The territory in which your policy provides coverage for navigation.
  • Personal Watercraft: Usually a boat less than 13 feet in length upon which the operator sits or stands, commonly known as a jet ski.
  • Policy Period: The period of time where the policy is active, with starting and expiration dates and times
  • Private Pleasure Use: A boat that is used only for your personal, recreational use. The boat is not covered if it is ever used commercially.
  • Trailer: Used to transport the boat.
  • Uninsured Boater: Coverage that protects you in the event of an accident with a third party who does not have boat insurance.



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