Top reasons to acquire boat insurance

Marine insurance, more commonly referred to as yacht or boat insurance, is one of the most important factors for vessel operators to consider before navigating their vessel on open waters. The risks at sea are vast, with extreme weather changes causing disastrous consequence for boat owners, thus it is prudent to ensure your boat has the optimum insurance cover before exposing it to the risks at sea. Obtaining the most appropriate insurance policy is essential and so it is advisable to gain the advice of knowledgeable a yacht broker or consultancy firm.

To learn more about our marine insurance services, view our Marine Insurance page. Alternatively, Contact Us for to find out how we can assist you with your specific yachting needs.

Reasons to obtain boat insurance explained

Boat owners are highly advised to obtain effective and comprehensive insurance to cover their vessel in the event of damage at sea, and to reduce liability where injury or damage occurs to crew and on board equipment. There are many different types of boat insurance policies available, making the selection of marine insurance a relatively complex task. Nevertheless, obtaining insurance is of vital importance for the following reasons:

  • Oftentimes, marinas require vessel owners to insure their boat prior to allowing them to dock or launch
  • The financial value of a vessel is usually high and so it is important to secure your financial investment against damages at sea
  • If your vessel causes damage to another boat, marina or other marine entity, the liability to pay for the damaged vessel’s repair and injury to its crew will rest with you
  • Vessel owners can essentially avoid bankruptcy where they are comprehensively covered against liability and damages
  • Individuals can obtain a tailored insurance policy to ensure that they only pay for the exact cover their vessel requires, according to the activity the boat will engage in and the value of the boat
  • Marine insurance is compulsory where navigating it on international waters
  • Many insurance policies can cover vessel owners against theft of possessions on board the vessel

The type of insurance policy obtained will depending largely on the type of vessel, its size and value, and the intended activity of the boat.