Why Do You Need Watercraft Liability Insurance?


If your company uses a watercraft for your operations, you should not depend on general liability insurance to protect you in the case of a water-related incident or lawsuit. Most general liability coverages have a watercraft exclusion. Here is why you might need watercraft liability.

Property Damage and Bodily Injury Claims

Most general liability policies will not cover property damage or bodily injury claims that arise from the use of a watercraft. This goes for owned watercraft or watercraft that you rent or borrow from others. If you do not own the boat, then general liability may cover it if it is less than 26 feet.

Non-owned watercraft are not covered unless they do not transport property or people for a charge.

Damage to Rental Boats

If your company ever rents boats, you could have to fit the bill if you were to damage someone’s property or cause an injury while operating a rented boat. Most rental agreements will hold you liable for damages. If you have watercraft liability, then you will have coverage in these instances. If you rent often, then you should have watercraft liability coverage.

If you ever use boats in your business, the best way to protect your business is through a watercraft liability policy. This will pay for legal fees and settlements in the case of an accident.

Categories: Insurance
This post was written by , posted on April 14, 2021 Wednesday at 7:24 am