What you need to know about boat insurance in Canada

Boat insurance isn’t always as simple as it seems. Many people expect it to work like car insurance, but there are important differences. To make sure you’re properly covered, you’ll need to share more than just the basics like year, make, and model.

How you use your boat, where you operate it, and what equipment is on board all play a role in building the right coverage. Taking the time to share those details upfront helps avoid gaps and ensures you’re protected when it matters most.

Tips from Business Advisor Haley Arsenault

Business Advisor Haley Arsenault sees firsthand where clients can run into trouble. Here are a few of her key tips:

• Don’t assume your policy automatically covers everything on your boat
• Make sure motors, trailers, and accessories are clearly listed
• Consider liability coverage carefully, as risks on the water can be significant
• Avoid limiting coverage to certain times or situations

A quick review of your policy can go a long way in helping you stay protected on and off the water.

Boat insurance is not the same as car insurance

“A lot of people think boat insurance is like car insurance, but there is not always automatic coverage for everything,” says Haley Arsenault.

Unlike auto insurance, some components of your boat may need to be specifically listed on your policy. This can include:

• Motors
• Trailers
• Added equipment or accessories

If these items are not listed, they may not be covered in the event of a claim.

Liability matters on the water

Liability coverage is one of the most important parts of boat insurance. Being on the water comes with different risks than being on the road.

“There is a different kind of exposure,” Haley explains. “Someone can get hurt or you could damage another boat or dock, and that can get expensive quickly.”

Accidents on the water can involve multiple parties and costly repairs. Having the right liability coverage helps protect you financially if something goes wrong.

Seasonal use does not mean seasonal risk

It’s common to think that boats only need coverage during certain times of the year. However, that assumption can leave you exposed. Even when your boat is not in use, risks like theft, weather damage, or storage-related incidents still exist. Coverage should reflect the full picture, not just when you’re actively using your boat.

A common mistake to avoid

Haley recalls a client who wanted coverage only while transporting their boat.

“I actually had a client who only wanted coverage while his boat was being hauled to and from the water,” she says. “He didn’t want coverage while it was in the water.”

In many cases, this comes down to trying to save money or assuming the biggest risk is on the road. While transport does carry risk, most losses happen on the water. These can include:

• Hitting submerged objects
• Storm damage
• Injuries to passengers or others nearby

Choosing to only insure your boat during transport can leave a significant gap in coverage.

What to share when getting boat insurance

To make sure your coverage fits your needs, be prepared to provide:

• Make, model, and year
• Hull identification number
• Value of the boat and equipment
• Details on motors, trailers, and accessories
• How and where you use your boat
• Storage details
• Driver or operator information

The more complete the information, the more accurate your coverage will be.

Get coverage that fits your time on the water

Boat insurance should reflect how you actually use your vessel, not just the basics. By sharing the full picture and understanding the risks, you can avoid gaps and feel confident every time you head out.

At Westland, our expert advisors take the time to understand your needs and recommend coverage that fits. We keep things simple, so you can focus on enjoying your time on the water.