When it comes to boats, oil and water don’t mix, are you covered?

If you are a boat owner, there is a chance that you have overlooked getting the right boat or watercraft insurance policy. Perhaps you were under the impression that your homeowner’s policy also covered your boat. The truth is, some homeowners policies may provide limited boat liability insurance coverage, and the determining factor is often the power of the boat’s engine. It is best to review your policy carefully and discuss your specific situation with your insurance agent.

Now is a good time to make sure you have the right coverage. And if you have a boat or watercraft policy, what exactly is covered? There are different coverage options for boat owners to ensure that their boat and its passengers are protected. These options include physical property damage, vessel liability, medical payments, fuel/oil liability, uninsured vessels, vessel equipment, and emergency services.

The environmental disaster of the oil spill in the Gulf of Mexico comes to mind, and boat owners have been concerned about coverage for unforeseen circumstances. An oil spill from your boat could have a serious financial impact if you are personally responsible for paying for the cleanup. This type of event is usually covered by the watercraft liability coverage in the watercraft owner’s policy. However, some policies have separate limits that are specific to fuel oil liability.

Note that a general personal liability policy, which provides an extra cushion beyond the normal limits of liability, does not extend to liability for fuel spills. Therefore, it is very important to have $500,000 or $1 MM in fuel spill coverage on your boat policy to ensure you are protected.

Boat owners may also forget to consider other operators when purchasing their policy. If you borrow someone else’s vessel, make sure your policy covers your liability on that vessel, including fuel spills, which would be described under Non-Own Vessel Liability coverage. Although some boat policies will cover any “permissive operator” who drives the boat with a permit, some boat insurance policies may cover only the operators listed on the policy. Also, if someone operates your boat and causes a serious accident, you may be covered as a “permissive driver,” but be careful because your policy can only cover people who are specifically listed on your boat policy as operators. And this is one case where a general personal liability policy could come in handy. While this policy would cover your liability exposure from operating someone else’s boat, there are underlying limits that will likely leave you with a gap of $100,000 or more.

But here’s the good news! There are a number of discounts that could help you save on boat insurance. These discounts may include policies for a new boat and diesel engines. You may also be eligible for a multi-policy discount on your boat and auto insurance. And remember that you can earn discounts for successfully completing certain boating education courses.

Talk to your local insurance agent for more information. Secure browsing!