Search Youngs Insurance

Youngs Insurance Blog

Stay Protected: How to Avoid Costly Boating Insurance Claims

Posted Aug 18th, 2023 in Boat Insurance, Did You Know?, General, In the News, Insurance Tips, Media

Answers to Common Boating FAQs

Owning a boat can be an exhilarating experience, but it also comes with certain responsibilities, including educating yourself on boat safety to safeguard your investment against any potential risks and to protect yourself and other boaters. In this blog, we will explore common boating insurance claims and practical ways to prevent them. By incorporating these preventive measures into your boating routine, you can hit the water worry-free and protect your boat, ensuring that your summer adventures remain as smooth as the water beneath you.

Some of the most common boating insurance claims are: hitting an object in the water, theft out of the water, sinking, hitting underwater objects, fire and explosion, collision with another boat, and grounding.

Collision With Another Boat

Collisions between boats can lead to damage, injuries, and legal complications, making accident prevention a top priority for responsible boaters. To avoid collisions, always maintain a safe distance from other vessels, particularly in congested waterways or areas with restricted visibility. Utilize proper signalling and communication techniques to convey your intentions clearly to other boaters, reducing the chances of misunderstandings and accidents. Keeping a reasonable speed, remaining alert, and avoiding distractions while operating the boat enhances your situational awareness, ensuring you can quickly respond to changing conditions and potential hazards, ultimately safeguarding you and your boat from collisions.

The risk of a collision and causing damage to another person’s boat, or injury to another person is why having liability insurance coverage is crucial. If you are responsible for causing damage to someone else’s property or for injuring them, you may be sued and may be responsible for the cost to repair the damage, or the costs associated with the medical care. If you have liability coverage, this may help to cover some of those costs.

Uninsured boater coverage is also important to consider. It can help to protect you if you are injured in a boating accident by a boater that does not have insurance.


Running aground is an unfortunate and common boating mishap, but careful navigation and awareness can help minimize the risk. Before setting out on any boating journey, familiarize yourself with the water depths in the areas you'll be exploring, you can use nautical charts and GPS systems as resources. Stick to well-marked and well-known waterways, following established routes and channels to reduce the likelihood of running aground in unfamiliar territory. Additionally, be mindful of tide changes and their impact on water depths, as tides can significantly alter navigable areas, making it essential to stay informed and adapt your navigation accordingly. Lastly, be vigilant! You can often see areas like a sand bar or shallow water. Staying alert and vigilant is the best way to prevent grounding.

Hitting an Object in the Water

Collision with underwater objects like rocks, logs, or debris can lead to scraped hulls and damaged propellers, turning a joyous day on the water into a frustrating ordeal. To avoid these incidents, always stay vigilant and keep an eye on the water for any potential hazards. Train anyone on your boat to assist in spotting obstacles and emphasize the importance of constant vigilance. Additionally, utilizing GPS navigation tools to stay on course and be aware of shallow or debris-rich areas can provide an extra layer of protection and safety, while slowing down in unfamiliar or potentially hazardous waters gives you more time to react to unexpected obstacles and ensures that your boating journey remains incident-free.


The thought of your boat sinking is distressing, but proactive measures can mitigate this risk. In Ontario lakes, sinking is not common, but if you sail into rougher waters there will always be increased risk. Regularly inspecting and maintaining your boat's hull and plumbing systems can detect and address potential issues early on, reducing the likelihood of catastrophic damage. Ensure your bilge pump is in good working condition and consider installing a bilge alarm system that alerts you to any water buildup in the boat. Keeping floatation devices onboard is not only a legal requirement but also a practical measure that can assist in keeping the boat afloat in case of a minor leak or emergency, ensuring your boat remains buoyant and protected, as well as protecting everyone on it.

Emergency services coverage is important to have in a circumstance like this, as it can help to cover the cost of having to tow or recover your boat.

Hitting Underwater Objects

Hitting underwater objects can be a scary and costly experience for boat owners. Although hitting an object underwater involves an element of bad luck, several precautionary steps can significantly reduce the risk of these incidents. Investing in sonar systems that can help you detect submerged obstacles, especially in murky waters, equips you with advanced warning and allows you to navigate with greater confidence. Always pay attention and adhere to marked channels and navigation buoys to stay within safe waterways, as they indicate areas with a low risk of underwater hazards. As well, simply maintaining a safe distance from other vessels, particularly in crowded or narrow waterways, provides ample reaction time to avoid collisions and ensures that your boating adventures can remain free from mishaps.

Fire and Explosion

A fire or explosion on your boat can quickly escalate into a life-threatening situation. To reduce the risk of incidents like these, prioritize routine inspections of your boat's electrical and fuel systems. Regularly checking wiring, connections, and fuel lines can help identify potential issues and address them promptly, preventing fires caused by electrical faults or fuel leaks. When storing fuel, ensure it's kept in approved containers and stored away from potential ignition sources such as heaters or electrical appliances. Lastly, equipping your boat with functioning fire extinguishers and ensuring everyone on board knows how to use them correctly can be the difference between a minor incident and a catastrophic event.

Theft Out of the Water

Boat theft is a common concern among Ontario boaters, as the loss of any item big or small can be a heart-wrenching experience. To minimize the risk, take proactive steps to secure your boat both in and out of the water. Firstly, keep your boat covered when it is not in use. Consider storing your boat in a locked facility with restricted access when not in use to deter potential thieves. If you store your boat at home, installing additional security measures such as motion-activated lights or an alarm system can serve as an effective deterrent. Removing valuable items out of the boat when not in use reduces the temptation for potential thieves and further safeguards your personal belongings. Lastly, securing your boat trailer with a high-quality lock or investing in a removal hitch assembly can make it harder for thieves to hitch and steal your boat, offering you added peace of mind.

Comprehensive boat insurance generally includes coverage for various types of covered perils, including collisions, fire, theft, vandalism, sinking, and weather-related damage (such as storms or lightning strikes), and is the best way to protect yourself, your boat, and other boats and people on and in the water. Some policies may also cover accidental damage, medical payments, and coverage for personal property on the boat.

Comprehensive boat insurance often includes liability coverage, which, as mentioned earlier,  protects you if you cause damage to another person's property or if someone is injured while on your boat. This coverage can help cover legal expenses and medical bills.

When insuring your boat, you may have the option to choose between "agreed value" and "actual cash value" coverage. Agreed value coverage pays you an agreed-upon amount in case of a total loss, while actual cash value coverage takes into account depreciation and pays out the current market value of the boat at the time of the loss.

Be sure to check the navigational limits of your comprehensive boat insurance policy. Some policies may restrict where you can take your boat and still be covered. Make sure to talk with your Ontario insurance broker to make sure the policy aligns with your intended boating activities.

Like any insurance policy, comprehensive boat insurance may have exclusions or limitations. It's important to carefully review the policy documents with your Ontario insurance broker to understand what is covered and what is not.

Even if you are careful, and educated on boat safety, sometimes accidents do happen, that result in the need to file an insurance claim.

Here is the process you would follow if you find yourself in that situation:

Immediately after an incident takes place, it is important to get in touch with your insurance broker and provide them with a comprehensive account of the event. Timely reporting initiates the claims procedure and enables your insurance broker to assist you in navigating the essential protocols.

When submitting a claim for boat insurance, you will usually be required to provide documentation and proof of the incident. This might encompass photographs or videos showcasing the damage, a potential police report, if relevant, and any pertinent details associated with the event, such as eyewitness accounts or prevailing weather conditions. The extent of your documentation can significantly enhance and simplify the claims process.

After evaluating and approving a claim, the insurance company usually proposes a settlement sum. This can encompass expenses for repairs, replacements, or reimbursement for other eligible damages. The settlement amount might be determined by the boat's actual cash value (ACV) or a predetermined value established in the policy.

It is important to remember, the majority of boat insurance policies come with a deductible, which is the sum you're responsible for paying upfront before the insurance coverage becomes effective. This deductible is usually deducted from the settlement amount.

Remember, prioritize comprehensive insurance, safety, education, and proper maintenance to ensure smooth sailing and protect your boat for many memorable voyages to come. 

Youngs Insurance Brokers offers custom Ontario boat & watercraft insurance to keep you a 'FLOAT' on the water. We insure bass boats, cruisers, fishing boats, personal watercraft, pontoon boats, small boats, small sailboats and yachts, 

Speak with your local Ontario insurance broker today to get a free insurance quote and to find the right protection and coverage for your boat or watercraft.

Click here for more tips on how to stay safe on your boat this summer. 

Click here to learn how to protect your jet ski. 

Speak with A Youngs Insurance Broker Today! » 


Disclaimer: The information provided on this blog is for educational purposes only and is not intended as professional insurance advice. The coverage, terms, and conditions of each insurance policy are unique and subject to individual circumstances. The information provided does not guarantee the availability or suitability of any insurance policy for your specific needs. You should not rely on the information in the blog as an alternative to professional advice from your insurance broker or insurance company. If you have any specific questions about any insurance matter, please consult a licensed insurance broker for personalized advice and guidance.

We Customize Every Insurance Quote Specific to Your Needs