Reality Check: A 41 year young vessel may be a real challenge to obtain liability insurance coverage. Rather an old man on the sea.
One needs to assess what
scope of liability coverage you MUST have and what you might WANT to have.
The types of risk exposures are many and the potential claim values can easily be into the seven figures. Your vessel might not have cost much or have much
hull value, but it's ability to cause harm and damage is greater than most because of its age. Paying $2K for liability coverage only is in the ballpark of expectations, maybe a bit high.
Many
marinas will delineate the type of insurance coverage they require and the limits with the stipulation that they be listed as an additional insured and they may also delineate the credit rating of the underwriting company.
A primer:
WHAT DOES BOAT LIABILITY INSURANCE COVER?
Boat liability insurance, which also may be called watercraft liability coverage, typically contains two types of coverage:
Watercraft bodily injury liability coverage:
May help prevent you from paying out of pocket for
medical bills and other related costs — like loss of
income — when someone is injured in an
accident you caused with your boat or personal watercraft.
Watercraft property damage liability coverage:
May help cover the costs of repairing or replacing another person's boat or property when you damage it in an
accident with your boat. This type of coverage typically kicks in after a
collision, but it may also help in other scenarios. For instance, if you have an accidental
fuel spill that damages someone's property, watercraft liability insurance may help cover clean-up costs. Liability insurance may also help pay for wreckage
removal if a covered boat accident requires raising, removing or towing your watercraft from the water.
It's important to note that boat liability insurance does not cover your
medical bills or your boat
repairs after an accident. You may want to look into medical payments coverage or boat property coverage for help with your own expenses after a
boating accident.
HOW MUCH BOAT LIABILITY COVERAGE DO I NEED?
Boat liability coverage — like all insurance coverages — comes with a limit, which is the maximum amount an insurance company will pay toward a covered claim. When you're selecting your boat liability coverage limits, you may want to consider the following:
Could you afford to pay out of pocket for someone else's medical bills if you cause a
boating accident that injures them?
If you accidentally damage someone's boat or other property with your own boat, could you afford to pay for their
repairs?
Check with your insurance agent to see what liability coverage limits are available on your boat insurance policy. They can help you
purchase the right amount of liability coverage for your situation. Keep in mind that higher boat liability coverage limits will likely increase the premium amount you pay.
For even greater protection, boat owners may want to consider
purchasing a personal umbrella policy, which provides increased liability limits for your boat, beyond what's offered by a standard boat insurance policy. Umbrella coverage typically starts with a $1 million coverage limit.
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