Just as motorists carry insurance to protect others on the road, boat owners also need cover to protect other people and property on the water. One essential option is third party cover or boat liability insurance. A common element of broader marine insurance is that it plans for both powered boat users and owners of small boats or jet skis. Whether you’re looking after a dinghy or a larger craft used for gatherings, having the right insurance is vital. Your insurance must meet the protection required if marina property or other people are affected by damage caused by your vessel.
What is third party liability insurance?
While operating your boat, third party insurance cover protects you financially if you cause damage to someone else or their property. In simple terms, it pays for harm you are legally liable for - your legal liability. This can include injuries to another person, or property damage to other vessels, docks or marine infrastructure. This cover will handle resulting third party claims.
This cover differs from comprehensive policies, which protect your own vessel against a wide range of risks including accidental damage and theft. Third party liability focuses only on losses suffered by others. It won’t pay to repair your own boat or cover injuries you sustain. Third party liability means you won’t be personally out of pocket if you’re found legally responsible for harming a third party. For full certainty, check the full details of your policy. Make sure you consider any optional extras and whether you need third party boat insurance cover for events aboard.
What does third party liability insurance cover?
Typical features of third party liability cover include:
- Damage to other boats or property - If you accidentally collide with another boat or hit marina property while manoeuvring, third party liability will meet the repair costs for the other party. Cover can also extend to fixed marine structures such as piers, buoys and harbour installations. It may include costs like salvage charges and wreck removal where another craft must be recovered.
- Legal costs and expenses - If a claim results in legal action, the insurance generally pays for defence costs, court fees and any settlements or judgments you're liable for. The claims process can involve insurers, independent experts and a survey of the affected craft. It can also involve paying legal fees to protect your finances and reputation as a policy customer.
- Injury or death to third parties - If someone is injured or killed because of your actions while boating, the policy will cover compensation claims. This can include medical expenses, loss of earnings and other damages awarded after personal injury or fatal incidents. Whether the injured person is a stranger, a crew member or one of your friends, this cover assists with third party liabilities.
What isn’t covered?
Third party liability insurance provides vital protection, but it has limits. Common exclusions are:
- Damage to your own boat - Repair or replacement costs for your vessel are not paid under third party liability. For that protection you’ll need a comprehensive marine insurance policy that considers your boat value, accidental damage and any optional extras. Considering the boat insurance cost against the value of your craft helps you decide which cover option suits your individual circumstances.
- Natural events or theft - Losses caused by storms, floods, or theft of your boat or equipment are usually outside the scope of third party liability insurance.
- Injuries to you or your passengers - Personal injuries suffered by you or those travelling on your boat are typically not covered. Personal accident cover is generally only included with a comprehensive insurance policy.
Why third party liability cover matters
Even the most experienced boater can be involved in an accident. Whether operating in a crowded marina or out at sea, the chance of causing damage or injuring someone exists. Without third party insurance cover you would be personally responsible for paying compensation and legal costs. These can be costly. For many waterways and marinas, having this cover is a legal requirement. It can also be a condition of storage and permission to launch or keep a berth.
If you plan to cruise abroad, check whether your policy offers european cover or other international options. Talk to your insurers about the cover option that matches your individual circumstances. This includes whether your policy treats jet skis, small boats or larger party craft differently. A simple quick quote can outline likely boat insurance cost and the level of cover. A detailed plan and a pre-purchase survey can also help ensure you’re properly insured.
Understanding the cover you choose is highly advisable. From handling third party claims to potential salvage charges, wreck removal and the wider legal liability you may face. Selecting the right insurance for your craft, confirming the full details and considering optional extras will help protect you, your friends and other water users when you’re out on the water.
How much cover should you choose?
The level of liability cover you need depends on factors such as vessel size and where you use it. Limits vary between providers. At Bishop Skinner Marine we offer policies with limits of either £3 million or £5 million. This is cover for either UK inland and coastal waters or for European waters, depending on your vessel and where you sail.
When selecting a policy, check the liability limits and consider whether additional protections are needed to ensure you’re fully covered on the water.
Get in touch with our team
For more information about third party liability insurance please contact our team.