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.
What could go wrong
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.
The storm sinking
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
When you need this
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.
For founders and business owners 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)
Common questions
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.
Do I need a license or qualifications for insurance?
For recreational boats, most insurers don't require licenses but may offer discounts to boat license holders or those with offshore qualifications. Commercial operation requires commercial marine insurance.
What if I damage someone else's boat?
Third-party liability (included in boat insurance) covers damage you cause to other boats, marina property, or injuries to others. Without it, you're personally liable, which can be hundreds of thousands.
Does this cover my fishing gear?
Basic boat insurance covers permanently installed equipment. Portable fishing gear, rods, and tackle typically require separate coverage (sometimes available as an extension or under home contents insurance).
What if my boat sinks at the mooring?
Covered if due to an insured event (storm, collision, inherent defect). Not covered if due to poor maintenance, unseaworthiness, or gradual deterioration. Regular surveys and maintenance are critical.
Can I use my boat for charter or hire?
No. Private pleasure craft insurance excludes commercial use. Chartering, hiring, or any commercial operation requires specialised commercial marine insurance.
What else you might need?
Boat Insurance covers your watercraft, but not everything:
If you have a trailer:
Usually included in boat insurance, but verify. Some policies cover trailers separately or have limits.
If you have expensive electronics or modifications:
List high-value equipment separately, including photos and receipts—standard limits may not be sufficient.
If you race or do offshore sailing:
You need specialised racing or offshore extensions—standard policies often exclude coverage for competitive racing.
Personal protection on board:
Consider Personal Accident Insurance for yourself and your passengers if you spend significant time on the water.