Am I Covered? Understanding Boat Liability Insurance and Protecting Yourself After a Boating Accident

The sun is shining, the water is calling, and you’re ready for a day of boating. But what happens when a relaxing day on the water turns into an accident? According to the U.S. Coast Guard, there were 5,265 recreational boating accidents in 2020 alone, resulting in 767 deaths and over $62.5 million in property damage. Understanding your boat liability insurance is crucial to protecting yourself and your assets if the unexpected occurs.

This blog post will help you navigate the complexities of boat liability insurance, explaining what it covers, why it’s important, and what steps to take if you’re involved in a boating accident.

What is Boat Liability Insurance?

Boat liability insurance is a part of a boat insurance policy that protects you financially if you are found legally responsible for injuries or damages caused to others while operating your boat. It’s similar to the liability coverage in your car insurance policy. While only Arkansas and Utah legally mandate boat insurance, and Hawaii for boats over 26 feet, many marinas and lenders require it, and it’s a good idea regardless.

What Does Boat Liability Insurance Cover?

Boat liability insurance typically includes two main types of coverage:

Watercraft Bodily Injury Liability: This coverage helps pay for medical expenses, lost wages, and other related costs if someone is injured due to an accident you caused with your boat. This can include injuries to passengers on your boat, people in other boats, swimmers, or even people on shore.
Watercraft Property Damage Liability: This coverage helps cover the costs of repairing or replacing another person’s boat or property if you damage it in an accident. This could include damage to another boat, a dock, or other structures. It may also cover wreckage removal or accidental fuel spills.

Some policies also include medical payments coverage, which can pay for injuries sustained in a boating accident, regardless of who is at fault.

Why is Boat Liability Insurance Important?

Even if your state doesn’t legally require boat insurance, there are several reasons why it’s a good idea to have liability coverage:

Financial Protection: Boating accidents can be expensive, and you could be held responsible for significant medical bills, property damage, and legal fees. Liability insurance can help protect your assets from these costs.
Peace of Mind: Knowing you have liability coverage can give you peace of mind while you’re out on the water. You can relax and enjoy your time boating without worrying about the financial consequences of an accident.
Legal Requirements: Even if your state doesn’t require boat insurance, your lender or marina might. Having liability coverage can help you meet these requirements and avoid penalties.
Protection Against Lawsuits: If you’re at fault in a boating accident, you could be sued. Liability insurance can help cover your legal defense costs and any settlements or judgments against you.

How Much Boat Liability Coverage Do I Need?

The amount of boat liability coverage you need depends on your individual circumstances. However, some boat insurance professionals recommend buying at least $100,000 in liability insurance. If you have a faster, more powerful boat, you may want to consider higher coverage limits, as these boats can cause more damage and are riskier to operate.

When selecting your coverage limits, consider:

Could you afford to pay out of pocket for someone else’s medical bills if you cause a boating accident that injures them?
If you accidentally damage someone else’s boat or other property with your own boat, could you afford to pay for their repairs?
What is your net worth? Select a liability coverage limit that adequately covers your savings and investment accounts, as well as the equity you have in your home, vehicle, boat, and other assets.

What To Do After a Boating Accident

If you are involved in a boating accident, here are some important steps to take:

Ensure Safety: Check for injuries and ensure everyone is safe. If necessary, administer first aid and call for medical assistance.
Report the Accident: In many jurisdictions, boat operators are legally required to report boating accidents if there is significant property damage, someone is injured or requires medical treatment, or there is a fatality.
Document the Scene: If possible, document the scene where the accident occurred. Gather contact information from involved parties and witnesses. Take photos of any damage to boats or injuries sustained.
Notify Authorities: Contact the appropriate authorities, such as the local police or the Coast Guard, to report the accident.
Exchange Information: Exchange names, contact information, and insurance information with the other parties involved in the accident.
Contact Your Insurance Company: Contact your insurance company as soon as possible to report the accident and file a claim.
Seek Medical Attention: Seek medical attention for any injuries you sustained in the accident.
Consult with an Attorney: If you’ve been involved in a boating accident, consulting with a personal injury attorney can help protect your rights and ensure you receive fair compensation for your injuries and damages.

Common Causes of Boating Accidents

Understanding the common causes of boating accidents can help you take steps to prevent them:

Operator Inattention: Failing to pay attention to the vessel, its occupants, or the surrounding environment.
Operator Inexperience: Lacking the necessary skills and knowledge to operate a boat safely.
Boating Under the Influence (BUI): Operating a boat while impaired by alcohol or drugs.
Excessive Speed: Traveling at an unsafe speed for the conditions.
Improper Lookout: Failing to maintain a proper lookout for other vessels, swimmers, and obstacles.
Mechanical Failure: Equipment malfunctions due to poor maintenance or defects.
Collisions: Crashing into other boats, fixed objects, or submerged objects.
Falls Overboard: Falling into the water due to carelessness or rough conditions.
Running Out of Fuel: Failing to properly plan fuel needs.

Proving Negligence

To recover compensation for injuries, a victim generally must show that another party did not act with reasonable care, that this failure caused the accident, and that actual harm resulted. For example, if a boat operator is texting while operating the vessel and improperly collides with another boat, the operator’s conduct was probably negligent. A passenger is typically not responsible for a boating accident unless they actively contributed to the incident, and an injured passenger can seek recovery from any at-fault operator, including the operator of their boat.

Damages Recoverable

An injured person may be able to recover damages for medical expenses and property damage, and for lost income if an accident renders them unable to work. They may also seek non-economic damages, including compensation for pain and suffering or a diminished quality of life.

Statute of Limitations

The statute of limitations for boating accident claims varies depending on the location of the accident and the applicable law. In Florida, for example, there is a four-year statute of limitations for boating accidents governed by Florida law, and a three-year statute of limitations for boating accidents governed by federal maritime law. It’s important to consult with an attorney to determine the applicable statute of limitations in your case.

Safe Boating Tips

To ensure a safe and enjoyable boating experience, follow these tips:

Take a Boating Safety Course: Educate yourself on boating safety and regulations.
Wear a Life Jacket: Make sure everyone on board has a properly fitted life jacket and wears it at all times.
Check the Weather: Before heading out, check the weather forecast and be prepared for changing conditions.
File a Float Plan: Before leaving, always tell a friend or family member where you are going and when you expect to be back.
Avoid Alcohol and Drugs: Never operate a boat while under the influence of alcohol or drugs.
Maintain Your Boat: Regularly inspect and maintain your boat to ensure it’s in good working condition.
Be Aware of Your Surroundings: Pay attention to other boats, swimmers, and obstacles in the water.
Follow Navigation Rules: Obey all navigation rules and regulations.
Operate at a Safe Speed: Adjust your speed to the conditions and be aware of speed limits.
Carry Proper Safety Equipment: Make sure your boat is equipped with all required safety equipment, such as a fire extinguisher, flares, and a first-aid kit.

Conclusion

Boating is a wonderful way to enjoy the outdoors, but it’s important to be aware of the risks involved. Understanding your boat liability insurance and taking steps to prevent accidents can help you protect yourself and others on the water. If you are involved in a boating accident, taking the right steps can help protect your rights and ensure you receive fair compensation for your injuries and damages.