Does a Tender Need Separate Ontario Boat Insurance?
Yachts in Ontario can have tenders, dinghys or smaller boats, to transport people, supplies, or equipment between the larger boat and shore or another vessel. If you have a large boat and a tender, is the tender part of your boat insurance in Ontario?
That depends. A tender can be insured either as part of your Ontario boat insurance policy or separately, depending on the marine insurer and your needs.
Western Financial Group, a 100% Canadian company, can help you navigate your Ontario boat, car, home, and business insurance during this period of economic uncertainty.
Do you know what a tender is?
A tender is a smaller boat used to support a larger vessel like a yacht, fishing boat, or ship by transporting people, supplies, or equipment between the larger boat and shore or another vessel. The name tender comes from its role in "tending" to the needs of the larger vessel.
A tender is used when your main boat is anchored offshore and you want to go ashore. Tenders can also used when the larger vessel cannot dock due to size, shallow water, or port constraints.
It can ferry passengers ashore, carries provisions, provides safety in emergencies, and enables recreational activities like watersports.
Are tenders motorized?
Small tenders (like rigid inflatable boats, or RIBs) usually have outboard motors or electric outboards.
Medium-sized to larger tenders can use inboard engines with sterndrives or jet propulsion, allowing for better shallow water capability and better manoeuvring. They can also have advanced propulsion technologies such as hydrojet or fully electric motors.
Most tenders for yachts and larger vessels are motorized.
What kinds of Ontario boats need tenders?
Yachts and superyachts in Ontario
Most yachts over 30 feet (10 metres), especially luxury and superyachts, carry tenders as support boats for guest transfers, supplies, recreational activities, and safety.
Cruise ships and large passenger vessels
When cruise ships and large passenger boats can’t dock directly due to port limitations or shallow waters, tenders ferry passengers ashore.
Explorer yachts and adventure boats
Explorer yachts and adventure boats can use specialized tenders like beachlanders for easy shore access and cargo delivery in remote locations. A beachlander is a type of specialized tender boat designed for easy landing on beaches or shores.
Fishing yachts or boats
Fishing yachts or fishing boats can have tenders equipped for fishing trips, providing extra range and storage for equipment.
How are tenders insured in Ontario?
Some boat insurance policies automatically include a tender as part of your boat insurance policy. It may have the same deductible as the boat if it is automatically covered.
You can also schedule the tender. What’s that?
To “schedule a tender" means to list or specifically include your tender boat as a separate item within your main Ontario boat insurance policy. By scheduling the tender, you pay a higher premium but usually benefit from a lower deductible and customized coverage tailored to the tender's value, usage, and risks.
Top 3 reasons to insure your tender separately from your Ontario boat?
- More accurate valuation and payouts in case of a claim.
- Coverage that fits the tender's specific needs rather than lumping it with the entire boat.
- Better protection: Tenders are vulnerable to theft, accidents, and damage.
Did you know? Western Financial Group Ontario marine insurance experts can get you customized boat insurance at the right value for you.
Why do tenders need insurance in Ontario?
Tenders need insurance because they face specific risks such as theft, damage, accidents, and liability incidents. Insuring your tender provides financial protection for losses or damage to the tender itself and covers third-party liabilities if the tender causes property damage or injury during use.
Top reasons for insuring your tender in Ontario
- Protection against theft, damage, and accidents
- Coverage when your tender is used independently and away from your boat
- Makes it simpler to file an insurance claim
- Coverage can be customized coverage for towing, beach landings or watersports
- Financial security because repairs or replacements for tenders can be pricey
- Third-party liability protection
Did you know? An all-risk boat policy provides comprehensive coverage for a wide range of potential losses, except those specifically excluded in the policy. Ask your Western Financial Group boat insurance expert about an all-risk boat policy for your Ontario boat.
What if my Ontario boat has a jet ski on the back. How is that insured?
If your Ontario boat has a jet ski (personal watercraft also called a PWC) stored on the back, the jet ski usually needs its own insurance policy, separate from your main boat insurance.
Remind me what a yacht is and why it would have a tender?
What’s a yacht?
A yacht is a large, luxury boat used for leisure, pleasure cruising, or racing. It’s at least 33 feet (10 metres) in length. A yacht is equipped with overnight accommodations and high-end amenities such as spacious cabins, advanced navigation systems, and may have a gourmet kitchen, pool, or entertainment area.
A yacht can be powered by sails (sailing yachts) or engines (motor yachts).
Why would an Ontario yacht have a tender?
A yacht would have a tender because:
- Provide shore access because due to their size, yachts often can’t dock directly at marinas or beaches
- The tender serves as a backup for emergencies if the yacht is disabled or cannot move. It can be used to gets passengers off the yacht in an emergency.
- Versatility: You can explore secluded coves, beaches, or islands in your tender. Or you can use it for water sports, fishing, snorkeling, or sightseeing trips.
- Practical uses: A tender can be used to get provisions, groceries, and equipment from shore to the yacht.
To sum it all up
It is your choice whether to insure your tender separately or under your Ontario boat insurance. You’ll need to do your research and decide what is best for you as a boater in Ontario but make sure that your tender is insured to protect yourself financially.
5 FAQs
Do I need to get Ontario boat insurance?
Boat insurance isn’t required in Ontario or the rest of Canada, but banks will require it if you have financing for your boat and Ontario marinas may require it for docking or storage. Marine insurance protects your investment in your boat.
How much Ontario boat insurance do I need?
It depends on your risk tolerance, boat value, and how much money you would need to replace your boat with a similar one. Agreed value (full payout based on the value agreed with the insurer) is recommended over actual cash value (replacement cost minus depreciation) in boat insurance. Third-party liability insurance valued at $3 million is also recommended in case you have a boat accident and passengers are injured.
Is my Ontario boat covered when in storage or being transported?
Comprehensive policies typically cover your boat during storage and transport, but it’s important to check for specific limitations or exclusions in your boat insurance policy.
Does my Ontario homeowners insurance cover my boat?
Homeowners policies may provide limited coverage for small boats like a canoe or dinghy, but larger boats almost always require a separate marine policy for comprehensive protection.
How much does boat insurance cost in Ontario?
Ontario boat insurance premiums vary based on the type, size, value, and condition of the boat, your boating experience, claims history, and coverage you want. Discounts may be available for boating safety courses.
What isn't covered by Ontario marine insurance?
Typical boat insurance exclusions include wear and tear, mould, gradual deterioration, manufacturer’s defects, and damage from improper maintenance.
