Understanding Liability Coverage: What Happens if You Hit Another Vessel?

Accidents on the water are often a boat owner’s worst nightmare. In addition to worrying about the possible damage to your own vessel, you also might need to account for other parties’ losses, such as if you crash into someone else’s watercraft. Given the potentially catastrophic consequences of boat collisions, understanding and acquiring appropriate boat liability coverage should be a top priority.

What Can Liability Coverage Help With?

Like auto insurance you might have for your car, liability coverage in a boat insurance policy is focused on financially protecting you from situations where you’re to blame for someone else’s monetary losses. This aspect of your coverage may be particularly critical after an accident for which you’re at fault, as you could face lawsuits and out-of-pocket costs that might have far-reaching financial ramifications.

Specifically, boat insurance can often include the following liability coverages:

• Property damage liability coverage can help pay to repair or replace someone else’s vessel, building or other physical property if you crash into it or are otherwise at fault for a collision.
• Bodily injury liability coverage may offset third-party medical bills and financial losses if other boaters or passengers are injured in a collision or other incident for which you’re responsible.

How Does It Work?

After a boating collision, you’ll need to exchange information with other involved parties. This typically includes insurance information. When you hit someone else’s vessel and are the at-fault party, they’ll contact your boat insurance company to file a claim against your liability coverage.

Do I Need Boat Liability Coverage?

Although boat insurance is not always required by law, including in Alabama, it’s highly recommended. Without sufficient coverage, striking someone else’s vessel could impose devastating fiscal repercussions, potentially leading to costly lawsuits. Additionally, many marinas may require you to carry liability coverage before allowing you to dock or access their facilities.

We’re Here to Help

At Southern Insurance AL LLC, our knowledgeable and dedicated team can help boat owners enjoy nautical adventures while maintaining the financial security provided by robust liability coverage. Contact us today to discuss your options and find the right boat insurance policy.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.