Why is Boat Insurance Recommended?
Your boat is an investment, just like your car. Boat insurance is recommended to protect you financially.
Accidents can happen and your boat can get damaged. Passengers can get injured or worse. Boat equipment can get stolen. Your financial institution may require that you get insurance before lending you money to buy your boat. Those are major reasons to get boat insurance, even though it’s not legally required in Canada. You will be protected and have peace of mind with boat insurance.
Western Financial Group, a 100% Canadian company, can help you navigate your boat, car, home, and business insurance during this period of economic uncertainty.
What if I don’t get boat insurance?
If you’re comfortable with the potential financial fallout of not having boat insurance, that’s a risk you can take. Without boat insurance, you’ll need to be prepared for any financial consequences that you could face like paying out of pocket after an accident that damaged someone’s boat.
It's recommended that you have $3 million or more in marine liability insurance coverage as part of your boat insurance policy to financially protect yourself as a boat owner against lawsuits, medical expenses, and repairs.
Did you know? Many marinas require $3 million in boat liability insurance for you to dock or moor your vessel.
Can I get sued if I don’t have boat insurance?
Yes, you could be sued. You can be sued over a boat accident in Canada if you are found to be at fault due to negligence or failure to follow boating laws and regulations.
Under the Marine Liability Act, the maximum liability for loss of life or personal injury is now $1.5 million, and for other claims it has increased to $750,000.
A boat accident lawsuit can be expensive due to legal fees, court costs, and the potential for large settlement awards. Could you afford that without liability coverage as part of your boat insurance?
Top 3 reasons to get boat insurance
Protects your boat
Boat insurance protects your boat and its motor, boating equipment, and boating accessories like lifejackets, GPS, depth sounders, and many other items.
Liability coverage
Yes, boat liability insurance helps protect you financially if you should you injure or cause the death of someone, or cause damage to another person’s boat or property, while you’re operating your boat.
For example, if you injure someone or damage another person’s property (such as another boat or a dock), liability insurance will pay for these damages up to your boat policy’s limits. Liability coverage as part of your boat insurance can also help pay for lawyers’ fees and court costs.
Extra benefits for peace of mind
Many boat insurance policies can include towing, emergency assistance, wreckage removal, and rodent damage, giving you even more protection.
What are the 3 main types of boat insurance in Canada?
Liability insurance
Liability insurance helps financially protect you if you are responsible for causing injury to others or damaging someone else’s property while operating your boat. It’s designed to protect you against lawsuits related to incidents for which you are legally responsible while operating your boat.
Comprehensive insurance (all perils)
Comprehensive insurance covers your boat against theft, fire, vandalism, and severe weather.
Hull and Machinery (Property/Collision Coverage)
Hull and machinery insurance protects against physical damage to your boat, including collision with other boats or objects, and may also cover equipment attached to the boat.
Could I choose only liability insurance coverage for my boat?
Yes, you can. Liability coverage protects you if your boat causes injury to others or damage to someone else’s property, but it does not cover damage to your own boat.
Choosing only liability insurance for your boat also does not cover theft or fire, for example.
In these types of scenarios, you would not be saving any money on repairs or loss.
Can I save money on my boat insurance?
Here’s what you can do to save money:
- Take a boating safety course: Completing an approved boating safety course can lower your premiums. Insurers can see you as a lower risk.
- Maintain a clean boating record: Avoid accidents to keep your record clean and your insurance costs down.
- Choose a higher deductible: Increasing the amount you agree to pay out-of-pocket in the event of a claim can reduce your monthly or annual premiums.
- Actual cash coverage covers you for the value of your boat at the time of loss, less depreciation.
- An agreed value policy honours the value of your boat at the time the policy was written. Many boat owners choose an agreed value policy for peace of mind.
- Compare quotes: Use insurance brokers like Western Financial Group to shop around for the best boat insurance rates.
- Install security devices: Equip your boat with alarms or tracking systems to deter theft for a possible discount.
- Maintain your boat: It can help lower your risk profile.
Do you know about Actual Cash Value vs. Agreed Value Coverage as part of your boat insurance?
- Actual cash coverage covers you for the value of your boat at the time of loss, less depreciation.
- An agreed value policy honours the value of your boat at the time the policy was written. Many boat owners choose an agreed value policy for peace of mind.
To sum it all up
Boat insurance is recommended to protect your financial investment in your boat, its equipment, and your passengers.
If you have a boating accident without boat insurance, you could be responsible for significant financial losses. Without boat liability insurance coverage, you'd be liable for damages to other boats, property, and medical expenses for injuries, which could lead to lawsuits and major expenses.
Protection and peace of mind should be top of mind when it comes to your boat and insurance.
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5 FAQs
Can boat insurance protect me from civil claims if a passenger gets injured?
Yes, if you have liability coverage included in your boat insurance. Liability insurance protects you if you are found legally responsible for injuries to others, including your passengers, due to your negligence in the operation of your boat.
What is comprehensive boat insurance?
Comprehensive boat insurance offers broad protection against a range of risks, such as theft, fire, and severe weather.
Does boat insurance cover rodent damage?
Boat insurance coverage for rodent damage depends on your specific policy and insurer. Some insurers, especially those offering comprehensive or "all-risk" coverage, may include rodent damage as a covered peril. Note that many standard boat insurance policies specifically exclude damage caused by rodents. Ask your boat insurance provider.
Does insurance cover damage to my boat if I hit a dock?
Yes, if you have collision coverage as part of your boat insurance policy, damage to your boat from hitting a dock is generally covered.
What are the most common boat insurance claims?
The most common boat insurance claims are typically hitting an object in the water like a rock or piece of wood, hitting a dock, or colliding with another boat.
