Your Boat and Marine Insurance

Understanding the benefits of a specialized marine insurance broker will save in the long run with proper coverage for your boat and boating lifestyle.

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Words by Steve Fennell

Boat insurance and having the right policy that matches your activity on the water is perhaps one of the most important aspects of recreational boating. Whether you have a new cruiser or a 1999 runabout, your policy is a gamut of protection in the event of unforeseen damage, liability, or total loss, and provides the best peace of mind every time you head out.

Although boating is considered high risk among underwriters, insurance for your boat is not all that difficult to obtain as many policies and coverages are available and vary from broker to broker and underwriter to underwriter. Nonetheless, having boat insurance and understanding your policy are often two different things. It’s only after an accident or a major breakdown that you realize your boat insurance policy doesn’t cover your needs.

“It’s all about the information that’s provided by the client in the first few phases of getting a policy,” says Sean Thompson, president of Dolphin Insurance Services, a marine brokerage specialist based in Burnaby, BC. “We are a broker, so we get all of the boat owner’s information to make it presentable to an underwriter for the best coverage. Plus, if the client is concerned about certain coverage such as liability, we can combine higher liability coverage with the basic policy, which means they get what they require. That’s the benefit of being a specialized marine broker. We are very specific in obtaining all the important information from our clients for the underwriter.”

Representing approximately 6,000 recreational and commercial boats throughout North America, Europe, even the Caribbean and South Pacific, Dolphin Insurance Services offers basic coverage to include comprehensive, bodily injury, property damage and collision liabilities for most recreational boaters, yet they specialize in what is called a Stated Amount Policy – that covers the replacement value of your boat as stipulated in your policy (if a total loss occurs in case of theft, fire or other accidents) - as well partial loss in the event you damage your boat from rocks or other debris or if there is related damage due to worn parts or deterioration, either on the boat or in the engine.

“One of the biggest claims or concerns that we see is wear and tear or gradual deterioration,” says Thompson. “As an example, engines or related engine damage can be very expensive to repair. While most policies exclude this, we offer a policy/coverage that goes beyond that if the boat or engine has been regularly maintained and the damage could not have been foreseen. It won’t cover the failed part, but it will cover the resulting damage.”

Currently, Thompson explained, one of the biggest concerns among underwriters is determining a boater’s skill level and level of competence of operation concerning navigation, man-overboard procedures, understanding weather patterns, and handling and docking, especially for first time owners of larger vessels or if you’re stepping up from a mid-sized runabout to a model of 40-plus feet.

“To alleviate this, we often suggest getting accredited onboard boat training,” says Thompson. “We ask the client to get into contact with companies or the captains that offer this and they will sign off after they feel comfortable operating the boat after so many hours. As a result, the underwriter knows you have the proper training and you’re aware of all operations and procedures, which makes it a lot easier for the underwriters when we submit an application.”

While there are many details in obtaining a boat insurance policy, it’s best to resort to a specialized broker and underwriter to ensure you have best policy and coverage for your needs, especially if you plan on doing a lot of boating throughout the season.

“We won’t sell a policy based solely on a price, we sell on value and service,” says Thompson. “Once we educate boaters about what they require and even though the premiums may be a little higher, nine times out of ten, they come with us as they don’t want any problems down the road. We are basically a specialist. We understand boats and know how to provide the right policy for a client’s boat. As a result, they can relax as they know they have the proper coverage.”