Insuring a boat

For many people, days out on a boat are among the highlights of the year.

The right insurance lets you enjoy those days knowing an accident is covered. This page explains how marine insurance works in the UK and what to look for in a policy. It gives no quotes and sells no insurance.

What marine insurance covers

Marine insurance pays out for loss of a boat or other vessel, or damage to it. The law behind it in the UK goes back to the Marine Insurance Act 1906.

There are two main levels of cover. Third-party cover protects you against claims from other people if your boat causes injury or damage. A comprehensive policy can also cover your own boat, its contents and the crew.

Cover for the canals and rivers

On most of the UK's inland waterways, a boat needs a licence, insurance and a Boat Safety Scheme certificate before it can cruise. The Boat Safety Scheme certificate is the boat's version of an MOT.

The Canal & River Trust asks for third-party cover of at least £2,000,000 before you buy a licence. It also suggests reading the small print on salvage. Some policies leave out the cost of recovering a boat after a sinking or a fire, and that can run to thousands of pounds.

Telling the insurer about you and your boat

When you buy a policy for yourself, the law asks you to take reasonable care to answer the insurer's questions accurately. Disputes often start with the questions about boating experience. The Financial Ombudsman Service gives the example of someone who has hired a speedboat once a year for 20 years. That person might say they have 20 years' experience.

A business buying cover has a wider duty. It has to give the insurer a fair presentation of the risk, including everything it knows or ought to know that would affect the insurer's view.

Habits that keep your cover sound

Most marine policies cover sinking. Full cover usually applies when water floods in suddenly after an accident. A slow build-up of water can point to a boat that has not been kept seaworthy, and cover may then be limited.

Insurers expect a few basic checks before you cast off.

Look in the bilges for water.
Put the bungs in the drain holes when you launch from a trailer.
Close the sea cocks.
Check the safety equipment.

Small boats and personal watercraft often come with security terms, such as a hitch-lock or being chained to something fixed. When a claim is disputed, the Ombudsman looks for evidence that a professional marine engineer serviced the boat regularly.

If a claim goes wrong

Start with a formal complaint to the insurer. If you get no final response within eight weeks, or you are unhappy with the answer, you can take it to the Financial Ombudsman Service. It is free to use.