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Which insurance does a boat owner actually need?
Short answer
Third party liability comes first: marinas ask for it and several countries require it.
Hull cover makes sense if you could not replace the boat yourself.
Personal accident and legal expenses are useful additions, not essentials.
A new owner is quickly offered four kinds of cover: third party liability, hull, personal accident and legal expenses. Not every boat needs all four. The order follows from one question: which loss would hurt you most? Liability comes first, because an injured person or a damaged yacht can lead to claims far beyond any private savings. Most marinas ask for proof of it, and Italy, Spain, Croatia, Greece and Denmark require it for many boats.
Hull cover pays for damage to your own boat from storm, fire and theft and, depending on the policy, from accidents such as collision or grounding. It is worth having if you could not replace the boat from your own funds or if a loan is secured on it. Personal accident cover pays for lasting injury to people on board, whoever was at fault. Legal expenses cover pays lawyers and court fees when you claim compensation, defend yourself, or fall out with a yard or a seller.
What to do: take out liability cover in every case and choose the limit by where you sail and berth, not by price. Decide on hull cover by the value of the boat and your reserves. Personal accident matters most for families and owners who sail with a changing crew; legal expenses for owners who cruise abroad, buy or sell a boat or have major yard work done. Compare the wording of each cover, not just the premium.
Worth remembering
Liability
always, often required
Hull, accident, legal
by value and use
Start with liability, then add what fits your boat.
Questions
What owners ask us about this
Is boat insurance compulsory in the UK?
There is no general legal requirement for private boats on UK coastal waters, but most marinas, many inland navigation authorities and several European countries ask for third party cover.
Do I still need hull cover for an older boat?
It depends on the boat's value and your reserves. If you could absorb a total loss yourself, liability alone may be enough.
Why personal accident cover if I already have liability?
Liability only pays when you are at fault. Personal accident pays for lasting injury even when nobody is.
Related
Not sure whether you qualify?
Whether it is “Which insurance does a boat owner actually need?” or another question: send us your residence and the flag your boat flies. You will get a straight answer in one email; including a no, if that is the answer.
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