As summer approaches, boating season in Canada is just around the corner with many vacationers hopping on their watercraft for sailing, water-skiing or fishing. But many of those setting sail may be lacking the proper coverage, as boating insurance isn’t mandatory in Canada, despite the many potential risks.
Boat insurance is crucial to protect owners for any of the following: injury to on-board passengers, injury to those being pulled in the water, and injury to those in the water or on other watercraft. Insurance can also cover damage to property caused by a watercraft mishap, as well as expenses due to theft or vandalism.
Matt Dubblestein, a managing partner with All-Risks Insurance Brokers Kingston, offered the following tips for brokers to pass on to their clients that own boats:
- Boat insurance cost and coverage is impacted by the following factors: value and size of the boat, the size of its motor, its location and the body of water where it’s to be used.
- Generally speaking, small non-motorized watercraft such as paddleboats, canoes and kayaks can be covered under the home or seasonal home insurance policies.
- A separate insurance policy is recommended for larger motorized boats. This includes personal watercraft vehicles (PWCs) such as water scooters. Most policies cover the boat as well as the motor, the trailer, and on-board equipment.
- Review the age restrictions for operators. For example, some PWCs are not allowed to be operated by individuals under 16 years of age.
- Policies may contain restrictions for travelling by boat. Clients must understand the terms of their policy for transporting the boat as well as its use at different docks and bodies of water.
Finally, there should also be cover for the watercraft when it is in storage during the off-season. This should include coverage for all the boat’s equipment, including the motor and the trailer.
