When purchasing a boat insurance policy, you should, at the very least, get a liability-only policy. (SkiSafe offer premiums starting as low as $85/year). If you get a broader policy that includes hull coverage and other features, it will generally still include liability coverage.
So just what are you getting with your liability coverage? Read below to find out.
WHAT IS LIABILITY COVERAGE?
Liability insurance commonly provides coverage for bodily injury and property damage to others. It’s important to understand that there is a limit on how much the insurance company will cover towards such losses. This is the liability limit that you select when purchasing your policy. A comprehensive general liability policy, such as that provided by SkiSafe, will also extend to many other important areas such as pollution and contamination liability, wreck removal and other things that you may be liable for under maritime laws. A policy not specifically designed for boat insurance may fail to protect you from these risks.
WHAT ARE YOU COVERED FOR?
Liability coverage will cover you for bodily injury or property damage to a third party arising out of the ownership or operation of your insured boat. This may cover the costs to repair or replace another party’s damaged boat and/or insured property.
In addition, liability coverage will protect you in the case that you are responsible for bodily injury to a third party.
WHAT EXCLUSIONS ARE THERE FROM LIABILITY COVERAGE?
Any insurance policy will identify certain items for which liability coverage is excluded. Such exclusions may include assumed liability that is not written in the policy, liability that arises while the insured property is being conveyed, fines or penalties from a government agency, exemplary damages, or storage charges.
WHAT ARE LIMITS?
As mentioned before, your policy will state the limit for liability coverage that you selected when purchasing the policy. This amount will be set forth on the Declarations Page of your policy.