If your boat is lost in accident, you are only out of pocket for the value or cost of the boat and its equipment if you are uninsured. But if you cause injury to another person or cause damage to their vessel or property, you may find yourself responsible for paying for their damages plus be out of pocket for your own damages.
This policy covers loss of or damage to the vessel caused by fire, external accidental means, theft of the entire vessel or outboard motors. In addition the policy also covers legal liability to passengers and other third parties for property damage or personal injury or death. Cover can also be provided for loss or damage to cargo while being carried on a ship.