Written By Andrew Walkey, Marine Insurance Specialist with NFP, an Aon company
Canadians know how to make the most of the summer. As boat owners enjoy the rest of the season, here’s what they need to know about recent changes to Canada’s boating regulations that may affect their coverage needs.
Since last year, the government has introduced significant amendments to Canada’s Marine Liability Act, which every boat owner, whether new or seasoned, must know about to ensure a smooth sailing experience.
Understanding the New Marine Liability Act Standards
We highly recommend a minimum of $3,000,000 liability for your protection to cover the limits imposed in the Marine Liability Act. Increased costs for additional liability vary by insurer. Please connect with your broker to increase your coverage on your policy as soon as possible for your peace of mind. With the increased limits of $1,500,000 for personal injury and $750,000 for property damage, the sum of coverage required would be $2,250,000. When interest and court costs are added, boat owners should obtain $3,000,000 liability coverage.
Essential Insurance Checklist for 2024
Before getting out on the water, boaters must ensure their policies are comprehensive and up to date. If you have a policy through NFP, you can contact your advisor to request a policy review. Key coverages to review include:
- Agreed value vs. actual cash value: Valuation methods that could affect payouts in the event of a claim.
- Liability coverage: $3,000,000 limit option available.
- Comprehensive and collision coverage: Protect against physical damage to your boat.
- Emergency assistance: Including towing and salvage, which is important in unexpected situations.
- Personal effects and equipment coverage: Covering valuables aboard your vessel.
- Medical payments: Covering medical expenses for injuries occurring on your boat.
Proactive Measures for a Safer Season
Beyond insurance, education and training play pivotal roles in accident prevention and enhancing safety on the water. Being familiar with navigation tools, weather-related risk mitigation and regular vessel maintenance are all practices that significantly reduce the risk of accidents. We also recommend enrolling in boating courses that cover navigation, radio communication and safety protocols.
Be Prepared and Protected
All boat owners should consult with a marine insurance expert to review and adjust their coverage due to these new regulations. Ensure your insurance is as ready for the season as your boat and enjoy a worry-free experience on the water.
Looking for watercraft insurance? Fill out our online quote form, or call us at 1.844.811.1118.
Andrew Walkey, a marine insurance specialist with NFP, an Aon company, has more than 10 years of experience serving the coverage needs of Canadian boaters. Andrew can be reached by email at andrew.walkey@nfp.com.