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Smooth Sailing

ARTICLE BY

  • Yulanda Paterson & Trevor Smith
  • Specialist Division and Online Manager | MD
  • Infiniti Insurance | Tri-Marine Acceptance

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Buying a boat can be exciting, but it’s important to be prepared in case things don’t go as planned. Here’s a guide to some of the insurance products available for boat owners.

The purchasing of a pleasure craft can be an exhilarating experience as it is considered a luxury acquisition. However, it is often an expensive investment that might require the owner to protect it against risks such as accidents, theft, vandalism, or natural disasters which can lead to substantial financial losses.

Understanding the risks

With climate change and volatile weather activities, losses surrounding these sorts of events have become more frequent and insurance is becoming critical to protect the craft. The major bodies of water, such as oceans, rivers, and lakes, can be unpredictable. Even if the boat is not damaged by natural perils, a collision with another boat can cause severe damage.

These risks underscore the importance of having insurance to cover potential liabilities and damages, given the substantial investment in pleasure craft. Key components of pleasure craft insurance typically include liability coverage, which protects the owner against bodily injury or property damage caused to others while using the pleasure craft. This is particularly important, as accidents can happen even to the most cautious operators. Additionally, physical damage coverage can help the owner pay for the repairs or replacements due to accidents, vandalism, or damage due to severe weather.

Navigating the options

The owner must fully understand what type of insurance cover is suitable for their boat before deciding. Many insurance covers encompass a variety of recreational activities such as boating, sailing and fishing. Some of these activities are associated with higher risk, and as such require additional coverage to protect against potential liabilities. It is also critical for the owner to know the value of the boat because this is what determines the type of coverage the owner needs and the cost of the premium. The owner should also understand the different insurance covers available, as this will measure the compensation they receive in the event of a claim.

With the rise of recreational craft, one of the major concerns for most vessel owners is normally driven by the fact that vessel use is seasonal, and vessel damage can – and often does – occur while the vessel is moored and unattended, and is thus discovered long after the occurrence. But for those clients who store their pleasure craft away from home, storage insurance is also worth considering. So, owners need to evaluate their needs and usage frequency.

Brokers must advise their clients to keep the correct certification in place and ensure that all regulations are adhered to, ensuring that there is no breach of the contract if a claim is lodged. Clients should regularly review their policies to ensure that they have adequate coverage, especially if they frequently engage in recreational activities on the water.

Having the right coverage can make all the difference in enjoying leisure time safely. Ultimately, helping your clients invest in pleasure craft insurance ensures that they can enjoy their recreational activities with peace of mind, knowing they are protected against unforeseen events and liabilities. “While we digest the world of pleasure craft and the excitement of summer and the holidays around it,” says Trevor Smith, MD of Tri-Marine Acceptance, “remember the wise words of Martin Luther King Jnr: ‘We may have all come on different ships, but we’re in the same boat now’.”

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