Watercraft Nonowned Insurance
What Does Watercraft Nonowned Insurance Mean?
Watercraft non-owned insurance provides coverage for marine vessels that the policyholder operates but does not own. Depending on the policy terms, it may cover both physical damage to the watercraft and legal liability. This type of insurance can be purchased either as a standalone policy or as a rider to supplement an existing watercraft insurance policy.
Insuranceopedia Explains Watercraft Nonowned Insurance
Before operating a marine vessel owned by another entity, the operator should confirm whether their existing insurance provides coverage. If it does not, they may need to purchase a separate watercraft non-owned insurance policy. While most liability policies cover property damage or bodily injury resulting from accidents involving watercraft not owned by the policyholder, certain exclusions apply. For instance, the policy may limit coverage to boats of a specific size, typically up to 26 feet in length. Additionally, if the policyholder charges for transporting property or people, such activities are generally not covered.
