Home / Glossary / Automatic cover for new risks

Automatic cover for new risks, in the boat insurance glossary

Boat insurance term, area: Liability

Some liability wordings, particularly those written in the German market, contain a provision for risks that arise only after the policy has started. Such a risk is insured at once, without a prior endorsement, but provisionally and with reduced limits. The policyholder must declare it when asked and agree a premium, failing which the protection lapses back to the day the risk arose. The catch for boat owners: craft that need registration, a licence or compulsory insurance are usually outside the provision. A second motorboat that requires a licence is therefore not picked up automatically.

What to check: If you acquire a further boat or take up a new activity mid-term, is it insured automatically, with what limits and for how long? What must you declare, and by when, to keep that protection in place?

More terms