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Uninsured third party cover

Boat insurance term, area: Liability

Uninsured third party cover, sometimes called default cover, helps when you are the victim of a loss and the boat that caused it cannot pay. That happens more often than owners expect: some boats run without liability cover or with a low limit, and not every person at fault has the money. With this cover your own liability policy pays as if the other side had held a policy on your terms. Example: an uninsured motor boat hits your yacht in harbour and its driver is insolvent.

What to check: Two questions for your own policy: is uninsured third party cover included in the liability section, or only available as an extra? And what must you show first, a court judgment, a failed enforcement, or only that the other side has no cover?

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