Watercraft Insurance - North American Mutual

Watercraft Insurance Coverages

Explore what each type of coverage protects

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Liability

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Uninsured Motorist

Uninsured Motorist

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Medical Payments

Medical Payments

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Personal Property Coverage

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Collision

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Comprehensive

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Towing and Labor

Towing & Assistance

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Rental Reimbursement

Wreck Removal Coverage

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Rental Reimbursement

Fuel Spill Liability

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Watercraft Insurance General Information

Boat insurance (also called watercraft insurance or marine insurance) offers financial protection for you, your passengers, and your vessel in the event of an accident, theft, or other unexpected incidents. Coverage can vary depending on the type of boat, its usage, and your insurer, but here are the most common types:

Liability Insurance

Watercraft liability insurance is a core component of any boat insurance policy, offering protection if you’re responsible for an accident on the water that causes injury or property damage. If you collide with another boat, damage a dock, or injure a swimmer, this coverage helps pay for the resulting costs. It generally includes both bodily injury liability and property damage liability, meaning it can cover medical bills, legal defense, repair costs, and even lost wages if someone is unable to work due to the incident.

This type of insurance is especially important because accidents on the water can lead to significant expenses, including lawsuits. Unlike cars, boats are often used in areas where emergency services are limited, so the risks can be greater and the costs higher. Having watercraft liability insurance helps shield you from having to pay these costs out of pocket, which could be financially devastating depending on the severity of the incident.

Coverage limits for liability insurance can be adjusted based on your needs and the type of watercraft you own. Whether you have a fishing boat, sailboat, or personal watercraft like a Jet Ski, carrying enough liability protection ensures that you’re not only complying with marina or state requirements, but also protecting yourself, your assets, and others who share the water with you. START A QUOTE⮕

Uninsured Motorist

Uninsured and underinsured watercraft coverage is designed to protect you and your passengers if you’re injured in an accident caused by another boater who either has no insurance or lacks sufficient coverage. Just like with car insurance, not all boaters carry the proper liability insurance, and if they’re at fault in an accident, you could be left covering your own medical expenses. This coverage steps in to help pay for those costs, including hospital bills, rehabilitation, and sometimes lost wages.

This protection is especially important on busy or unregulated waterways where there’s no guarantee that other boaters are insured. Even responsible and experienced operators can be put at risk by the actions of others. Uninsured boater coverage ensures that you’re not financially burdened by someone else’s negligence or lack of preparation.

For boat owners who frequently have guests onboard or spend time in high-traffic areas, uninsured and underinsured watercraft coverage adds an important layer of financial security. It’s often an affordable option and can make a big difference in the aftermath of a serious accident. START A QUOTE⮕

Medical Payments (Medpay)

Medical payments coverage, often referred to as MedPay, is a key component of boat insurance that helps cover medical expenses for you and your passengers if someone is injured while on the water. Unlike liability coverage, which only pays for injuries to others if you’re at fault, MedPay applies regardless of who caused the accident. It can help cover costs like ambulance fees, hospital bills, x-rays, and even minor treatments following a boating incident.

This type of coverage is especially valuable in situations where health insurance might not be enough or when immediate medical care is needed. Whether someone slips on the deck, is hurt during water sports, or is involved in a collision, MedPay can provide quick financial support without waiting for fault to be determined. It’s designed to reduce out-of-pocket expenses and provide peace of mind for boat owners and their guests.

MedPay limits can typically be selected based on your needs and budget, and the coverage usually applies while the boat is in use, being loaded or unloaded, or even when anchored. Though it’s optional in many policies, it’s a smart addition for boaters who frequently entertain passengers or want an extra layer of protection for unforeseen injuries on the water. START A QUOTE⮕

Personal Property Coverage

Personal property coverage in a boat insurance policy protects the belongings you keep on board your vessel. This includes items like fishing gear, life jackets, navigation systems, water sports equipment, coolers, and even personal electronics. If these items are lost, stolen, or damaged due to a covered incident—such as a boating accident, theft, fire, or storm—this coverage helps pay to repair or replace them.

For many boaters, personal property can represent a significant investment, especially for those who fish, dive, or participate in recreational water sports. Without this coverage, replacing high-value gear out of pocket could be costly. Personal property coverage ensures those extra items you bring along are protected, not just the boat itself.

It’s important to review what is covered and understand any exclusions or limits within the policy. Some insurers may cap coverage for certain items or require that you schedule high-value equipment separately. Keeping an inventory of your gear and storing receipts or photos can help streamline the claims process if something goes wrong while you’re out on the water. START A QUOTE⮕

Collision Coverage

Collision coverage is an important part of boat insurance that helps pay for repairs or replacement if your watercraft is damaged in a crash. This includes collisions with other boats, docks, underwater obstacles, or even floating debris. Whether the accident is your fault or someone else’s, collision coverage ensures that your vessel is protected from the financial impact of physical damage caused by a crash.

Unlike liability coverage, which only pays for damage you cause to others, collision coverage focuses on your own boat. It typically covers the hull, motor, and permanently attached equipment. If your vessel is totaled, your insurer may reimburse you based on either its actual cash value, agreed value, or replacement cost, depending on your policy type.

For boat owners navigating crowded marinas, busy lakes, or unfamiliar waterways, collision coverage provides peace of mind. It’s especially valuable if your boat is newer or has been a significant financial investment. Having this protection means you won’t have to pay out-of-pocket for major damage repairs after an accident on the water START A QUOTE⮕

Comprehensive Coverage

Comprehensive coverage is a key part of boat insurance that protects your watercraft from non-collision-related incidents. This includes losses caused by theft, vandalism, fire, storms, flooding, falling objects, or even hitting a submerged log or debris. Unlike collision coverage, which only applies to accidents involving other boats or objects, comprehensive coverage applies to a wide range of unexpected events that can damage or destroy your boat.

This type of protection is particularly important for boat owners who store their vessels in marinas, dry docks, or areas prone to severe weather. It ensures that if your boat is stolen or damaged while not in use, you’re still covered. Whether your vessel is tied up at the dock or sitting in your driveway, comprehensive coverage helps safeguard your investment from risks outside your control.

Many policies allow you to choose your deductible and limits, so you can tailor your comprehensive coverage based on the value of your boat and your comfort with risk. It’s a smart addition for anyone who wants full protection, not just while on the water, but year-round. START A QUOTE⮕

Towing and Assistance

Towing and assistance coverage, also known as on-water towing or emergency assistance, helps cover the cost of getting your boat to safety when it becomes disabled. Whether your engine fails, you run out of fuel, or your battery dies while on the water, this coverage ensures you won’t be left stranded. It typically includes services like towing to the nearest marina, fuel delivery, jump-starts, and sometimes minor mechanical labor.

This coverage is especially useful because towing a boat can be significantly more expensive than towing a car. Depending on your location and distance from shore, the costs can add up quickly—often hundreds of dollars per hour. Having towing and assistance coverage can save you from paying out of pocket for these unexpected emergencies.

Many boaters choose to add this coverage for peace of mind, especially if they frequently travel offshore or in unfamiliar waters. It’s a convenient way to ensure help is available when you need it most, turning a potential disaster into a manageable inconvenience. START A QUOTE⮕

Wreck Removal Coverage

Wreck removal coverage is a valuable part of boat insurance that pays for the cost of removing your sunken or stranded vessel after a covered accident. If your boat sinks due to a collision, storm, or other insured event, you could be legally required to remove it, especially if it poses a hazard to navigation or the environment. This process can be complex and expensive, involving specialized equipment and professional recovery teams.

Without wreck removal coverage, the responsibility—and cost—of raising or disposing of the boat falls entirely on you. In some cases, the cost of removal can exceed the value of the boat itself, particularly if the vessel is in deep or hard-to-reach waters. Coverage ensures that these costs are handled by your insurance company, saving you from a major financial burden.

Wreck removal is often included with liability or hull coverage, but policy limits and conditions can vary. It’s important to confirm whether your policy covers both voluntary and mandatory removal and whether it applies to total losses only. For any boat owner, this coverage provides peace of mind knowing that if the worst happens, you won’t be left facing massive recovery expenses on your own. START A QUOTE⮕

Liability

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Uninsured/Underinsured Boater

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Medical Payments (MedPay)

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Personal Property

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Collision

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Comprehensive

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Towing & Assistance

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Fuel Spill Liability

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Wreck Removal

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Fuel Spill Liability

Fuel spill liability coverage is an important but often overlooked part of boat insurance that protects you financially if your vessel accidentally leaks or spills fuel into the water. Spills can happen due to collisions, sinking, equipment failure, or even during refueling. Since environmental damage from fuel or oil spills is taken very seriously, boaters can be held legally responsible for cleanup costs, fines, and penalties.

This coverage helps pay for the containment and cleanup of the spill, as well as any related environmental damage. Without it, you could face significant out-of-pocket expenses—even if the spill was accidental. In many cases, federal and state laws require immediate action and response to any discharge of pollutants, and the financial liability can be substantial.

Fuel spill liability is typically included in most marine liability policies, but it’s important to check your specific policy limits and exclusions. For boat owners with inboard motors, fuel tanks, or larger vessels, having adequate fuel spill coverage is essential to staying compliant with environmental regulations and protecting yourself from serious financial risk. START A QUOTE⮕

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The information provided on this website is intended for general informational purposes only and does not constitute legal, financial, or insurance advice. While North American Mutual strives to keep the information accurate and up to date, we make no guarantees regarding the completeness, accuracy, or applicability of any information provided. Insurance policies, coverages, terms, and conditions can vary significantly between carriers, states, and individual business needs. Any examples of coverage are for illustrative purposes only and may not reflect actual policy terms or available options.

Visiting this site or contacting North American Mutual does not create an agent-client or insured relationship. Coverage cannot be bound or altered without confirmation from a licensed insurance representative. All insurance products are subject to underwriting approval, availability, and applicable state and federal regulations.

We recommend that you speak directly with one of our licensed agents to review your specific risks and coverage needs. North American Mutual is not responsible for any actions taken based on the content found on this site, nor for any errors or omissions contained herein. Always consult with a qualified insurance advisor or legal professional for advice tailored to your business situation.

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