The Right Insurance
For Life On The Water

Most marinas will require you to carry at least $1 Million in Liability Insurance. However, to be properly protected within the scope of the Marine Liability Act, you need to carry a minimum of $2 Million in coverage.

Depending on the age of your vessel, you may be required to have a Marine Survey done. The surveyor will need to be approved by Underwriters or a member of SAMS (Society of Accredited Marine Surveyors) or NAMS (National Accredited Marine Surveyors).

Wood vessels are more expensive to insure than fibreglass vessels.

Most claims happen outside of office hours. Does your broker have 24 hour claim service? Do they have the actual knowledge to assist you with appointing a Surveyor, Lawyer, Salvage Team and other experts you may need on the weekend?

Not all insurance policies are the same. It is not always about price, but what you get for that price. Two aspects you want to look at closely when shopping around are: the exclusions of the policy and how a loss is settled. At HUB International, our Lifeline policy is an agreed value policy. That means we will not depreciate your vessel in the event of a total loss. All partial loss claims are settled on a new for old basis, again meaning no depreciation (not even on Sails, Canvas, Upholstery, or Rigging). Our Lifeline policies have fewer exclusions than most other policies.

The limit of insurance you purchase on your boat needs to include items such as taxes, duty, freight and additional equipment installed. Those values may not be included in the initial price of your boat. The limit also needs to reflect the furnishing and equipment, which would include kitchen items, safety gear, bedding, and anything else that is part of the running or operation of your vessel.

There is a difference between resulting damage due to Latent Defect and wear and tear. Our policies cover both. Many other policies available will only cover Latent Defect. Latent defects are inherent weaknesses which normally are not detected by examination or routine tests, but which were present at the time of manufacture and are aggravated by use. Our policy will cover resulting damage when the damage results from faulty designs, faulty workmanship, the installation or use of improper or defective materials, wear and tear, gradual deterioration or corrosion provided the defect or condition would not have been detected through a reasonable prior inspection.

The difference between Replacement Cost, Agreed Value and Actual Cash Value. Do you REALLY know what you are insured for? Replacement Cost: In the event of a total loss, your Underwriters would replace the boat with a similar current model year, despite the limits shown on the policy. In the event of Partial Loss, repairs will be done a new for old basis without deduction. Agreed Value: In the event of a total loss, you would be pay out what you are insured for on your policy coverage page with no deduction for depreciation. In the event of Partial Loss, repairs will be done a new for old basis without deduction. Depreciated Value: Applying full depreciation to your vessel may result in you not being paid out the full amount you are insured for. Partial losses would also be depreciated on all parts and labour.