How Much Liability Insurance on Your Boat is Enough?

You just purchased your dream boat. You simply cannot wait to get it out into the open water and turn that engine on to see just how fast it can go. But, just like buying a car, it also opens you up to potential risks. As a boat owner, you should be sure that you have enough boat insurance in place to minimize these risks and to give you the confidence to know your vehicle and your financials can be protected. Specifically, consider liability boat insurance.

What Does Liability Insurance Provide?

Most boat owners need liability insurance. It can provide financial protection for the boat owner from claims of negligence made against them. Your boat does damage to another boat. A passenger on board falls over and is hurt. Your boat collides with the dock, creating significant damage. If you operate a boat, there can be the risk that something can occur that you could be held liable for. When you have liability insurance, it helps to cover these types of losses, giving you the support you need to get over them.

How Much Boat Insurance Do You Need?

The amount of liability insurance you need will depend on various factors. In most cases, the base policy will be $1 million in coverage. This is not a limit. You can and may wish to consider a higher valued policy. If your boat operates at a fast speed, in dangerous waters or has other higher than average risks of causing or being in an accident, it can be worthwhile to increase this amount of coverage significantly. Faster, powerful boats often require a higher level of coverage because they can create more damage and thus put you at risk to pay those costs out of pocket.

Boat insurance does not have to be expensive or hard to find. However, it does require paying close attention to your needs. Work closely with your boat insurance agent to learn what type of coverage is right for your individual needs based on your boat’s value, the type of boat it is and where and how you plan to use it. All of these factors play a role in what coverage is going to best protect you.