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Boat & Watercraft Insurance

Protect your boat, your business success deserves some time on the water

Storm damage, sinking, theft, collisions, boats are expensive assets with unique risks. As a founder, you’ve worked hard to afford your watercraft. Boat Insurance ensures it stays protected so you can actually enjoy it.

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What could go wrong

(and why you need this)

Boats are expensive, exposed to harsh conditions, and vulnerable to theft and damage. Storm damage, sinking, on-water collisions, and marina fires can all lead to one incident destroying your investment. Home insurance typically does not cover boats used on water, and most boat loans require comprehensive insurance. Without it, you’re personally liable for damage you cause, and you’ll lose your entire investment if something goes wrong.

Scenario 1

The storm sinking

A severe storm hits the marina. Your $85,000*  boat breaks free from its moorings and is battered against the dock. Hull damage, engine flooding, and electronics destroyed.

Total damage: $62,000* . Without insurance, your investment is gone, and you still owe $45,000*  on the boat loan.

What Boat Insurance covers

All storm damage, sinking costs, salvage and recovery, repairs or total loss payout if beyond economical repair

Scenario 2

The on-water collision

You’re navigating busy waters. Another boat fails to give way and collides with you. Your boat damage: $28,000* . Their boat damage: $35,000* .

They’re claiming you’re liable. Maritime law is complex.

What Boat Insurance covers

Your boat repairs, legal defence costs, third-party liability if you’re found at fault, and towing to a repair facility.

Scenario 3

The theft

Your $120,000*  boat is stolen from storage. Police investigate, but it’s never recovered.

Replacement cost at current market rates: $135,000* . Your loan: $95,000* . You lose everything without insurance.

What Boat Insurance covers

Theft payout at agreed or market value, costs to pursue recovery, and replacement at current market rates if the agreed value policy is in place.

Scenario 4

The fire at sea

An electrical fault causes a fire while you’re out on the water. Everyone escapes safely, but the boat is destroyed. Total loss: $175,000* .

Marine firefighting and salvage costs: $25,000* . Environmental cleanup: $15,000* .

What Boat Insurance covers

Total loss payout, salvage costs, environmental cleanup, emergency towing, and removal of wreck if required by authorities.

What this actually covers

Boat Insurance

Boat & Watercraft Insurance (also called Marine Insurance or Pleasure Craft Insurance) protects recreational watercraft:

Types of watercraft covered:

  • Motor boats and cruisers
  • Sailing boats and yachts
  • Personal watercraft (jet skis, wave runners)
  • Fishing boats
  • Dinghies and tenders
  • Kayaks and canoes (sometimes)
  • Trailers and towing equipment

Hull and machinery:

  • Physical damage to the boat hull
  • Engine and mechanical damage
  • Electronics and navigation equipment
  • Sails, rigging, and masts (sailing boats)
  • Inboard and outboard motors
  • Fixed equipment and accessories

Events covered:

  • Fire, explosion, and lightning
  • Storm, flood, and heavy weather
  • Collision and grounding
  • Sinking and capsizing
  • Theft and vandalism
  • Piracy (offshore)

Third-party liability:

  • Damage to other boats
  • Injury to other people
  • Damage to marina property
  • Environmental pollution liability
  • Legal defence costs

Additional cover typically included:

  • Emergency towing and salvage
  • Wreck removal
  • Personal effects on board (limited)
  • Water skiing and towed sports
  • Tender or dinghy
  • Trailer damage

Some optional extras

  • Racing and regattas
  • Agreed value (vs market value)
  • Watersports equipment
  • Fishing equipment
  • New-for-old replacement
  • Uninsured boaters protection
  • Personal accident for passengers

What may not be covered

  • Wear and tear or gradual deterioration
  • Unseaworthy vessel
  • Unlicensed operators
  • Deliberate grounding or scuttling
  • Using a boat beyond the surveyed limits
  • War or terrorism

When you need this

By founder stage

Start smart

Pre-launch to first year

You need this immediately if you’re:

  • Own a boat worth more than $10,000
  • Finance a boat (lender requires insurance)
  • Keep boat at a marina (marina may require insurance)
  • Use the boat regularly on open water
  • Can’t afford to replace the boat from savings
  • Have passengers (liability protection)

Agreed value vs market value:
Boats depreciate and appreciate unpredictably. Agreed value locks in the payout amount and is recommended for boats valued at over $50,000.

Typical coverage

Agreed value or market value, $20M third-party liability, salvage and towing, trailer cover.

For founders enjoying their success

Lifestyle considerations:

  • Ensure policy covers your actual usage (coastal, offshore, racing)
  • Update value annually (boats can appreciate or depreciate)
  • Consider passenger liability (friends and family on board)
  • Check geographical limits (Australia only vs international)

Stay on top of your cover

Keep in touch with the team at Pocket to ensure your coverage is fit for purpose.

Common questions

Founders actually ask

Does my home insurance cover my boat?

Home insurance may cover small boats or dinghies valued at $5k-$10k, but only while stored at home (not when in use). Anything more valuable or used on water needs specific boat insurance.