Liability vs. Comprehensive Coverage: Understanding Your Watercraft Insurance Options

Owning a boat opens up opportunities for weekend trips, fishing excursions and time on the water with family. But before you leave the dock, it helps to understand what your watercraft insurance covers, and where you might be financially exposed if something goes wrong.

The Role of Liability Coverage

Liability coverage can financially protect you when you’re responsible for an accident on the water. It can help pay for:

• Bodily injury claims from third parties
• Property damage to other boats or structures
• Legal defense costs if you’re sued

Without adequate coverage, those costs may come out of your pocket. Lenders and marinas may require proof of coverage if you finance your vessel or before granting you access to facilities.

The Role of Comprehensive Coverage

Comprehensive coverage can cover physical damage from events other than a collision, including theft, vandalism, fire and certain weather-related incidents.

This type of coverage is a strong option if you have a newer vessel or equipment that would be costly to replace. Lenders may also require this type of coverage if you’re financing your watercraft.

Choosing the Right Protection for Your Situation

The right combination of liability and comprehensive coverage can depend on your boat’s value, how you use it, and where you navigate. A runabout used on a small lake may carry different risks than a larger vessel used in open water.

Contact Royal Tax Service to talk through your options. Our team works with boat owners across Santa Ana, CA to match coverage to how they use their vessel.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.