The short answer
Marine insurance protects a vessel and the owner's legal responsibilities. Hull cover pays for damage to the boat and its machinery; liability cover responds when the vessel injures others or damages their property. Terms depend on the vessel's type, age, use, crew and waters. A licensed marine broker arranges cover from a survey, a valuation and a clear description of how the vessel is operated.
- Owners of commercial vessels such as fishing boats, charter boats, tugs and work barges
- Marinas, boat builders and repairers who hold other people's vessels
- Owners of larger recreational boats outside a basic boat policy
- Buyers of a used vessel who need cover in place before the purchase closes
- Operators who move between lakes, coasts and international waters
No broker in the network handles this yet. You can still prepare and save the request now. It is kept, and requests like it show us which brokers to find next.
Outside Alberta, Canada you can prepare and save a request today; sending opens place by place. Brokers answer with their own quotes. Broker.insure does not quote, advise or take commission.
There is a longer guide for this: Yacht insurance →
01 / What it covers
The parts worth understanding
Hull and machinery
Damage to the vessel, engines and equipment from perils such as collision, grounding, fire and sinking. Wear, corrosion and poor maintenance are generally not paid for.
Protection and indemnity
Liability for injury to crew, passengers and others, and for damage to other vessels or property. Often called P&I, it is a core cover for commercial operators.
Navigation limits
The waters in which the policy applies. Operating outside the named area, even briefly, can affect a claim, so travel plans need to be on the table.
Crew and employer duties
Seafarers' injury and employment rules are specialized and differ with the type of vessel and where it operates. Marine employer cover is often separate from standard workers' compensation.
Salvage, wreck removal and pollution
The cost of recovering a vessel, removing a wreck or responding to a fuel or cargo spill. Authorities can require owners to act at their own expense.
Valuation basis
Whether a total loss pays an agreed amount fixed at the start or the market value at the time of the loss. Agreed value needs a survey and good documentation.
02 / Get ready
Bring this, and expect these questions
Gather
- Vessel type, builder, year, length, hull material and propulsion
- A recent survey or the offer to purchase if the vessel is being bought
- Purchase price, refit history and an estimate of present value
- Intended use: private, charter, fishing, towing, passenger carriage or other work
- Home port, navigation range and any planned voyages outside it
- Crew size, qualifications and certificates, and the master's experience
- Safety equipment and maintenance records, including engine hours and haul-outs
- Where the vessel is kept in winter and how it is stored
- Loss history of the owner and the vessel over recent years
A broker will ask
- What is the vessel used for, and does it carry paying passengers or work crew?
- Where does it operate, and does it ever leave those waters?
- Who is the master, and what qualifications and experience do they hold?
- When was the vessel last surveyed and what recommendations were made?
- Is it under mortgage, and does the lender require special wording?
- Where is it kept during the off-season, and how is it protected?
- Do you also need protection for contractors, repairs or moorings?
- What happens to the vessel if you hire it out or lend it to someone else?
Not sure of an answer? Leave it. "Not known yet" is a fine answer, and a broker will help you fill it in.
03 / Build your request
Answer a few questions. Get your own list.
Pick what fits. Your answers shape the list beside them, and they are saved to your request as plain facts a broker can read. "Not sure yet" is always a fine answer.
04 / Three situations
See which one sounds like yours
A small commercial fishing family
A family operates one inshore fishing boat with two deckhands. After the previous owner retired they have been insuring only the hull and are unsure what covers an injured crew member or a lost net.
First steps. Ask the broker about protection and indemnity, the crew's compensation arrangements in the province and the treatment of gear. Bring the vessel licence, the crew list and a recent survey so that values and use can be described accurately.
A sightseeing charter operator on a lake
An operator is adding a second boat to take small groups of paying passengers on summer tours. Their current policy was written for private use before the business began.
First steps. Tell the broker clearly that the vessel carries paying passengers, and give the passenger limits, safety equipment and the master's certificates. Ask which authority's rules apply to the operation, because insurers will look for compliance with them.
A buyer of a used workboat
A contractor has agreed to buy a used work barge with a crane to move materials along a coast. The seller has offered an old survey and the lender needs proof of insurance before funds are released.
First steps. Ask for a current survey, not an old one, and share it with the broker. Clarify whether the crane operation changes the cover, how the lender will be named, and from what moment the buyer bears the risk of loss.
05 / Words you will hear
The jargon, in plain words
- Protection and indemnity
- Liability cover for harm a vessel causes to people, other boats or property, including crew injury. Commercial operators usually treat it as the core of their programme.
- Agreed value
- A total-loss figure the insurer and owner settle at the start. It avoids arguments over market value later but typically needs a survey as support.
- Marine survey
- An inspection by an independent surveyor who reports on a vessel condition and value. Insurers and lenders often rely on it for used boats.
- Navigation limits
- The geographic boundary within which the policy applies. Travelling past it, even briefly, can put a claim at risk.
- Salvage
- Payment owed to those who save a vessel or cargo from danger at sea. Cover for these costs depends on the wording and the circumstances.
06 / Common mistakes
What trips people up
- Insuring a working vessel on a recreational form because it was cheaper to arrange.
- Going beyond the named navigation limits without asking the insurer first.
- Letting a survey lapse on an older vessel and assuming the insurer will accept the old one.
- Treating crew injuries as covered by hull insurance, when they raise different laws and policies.
- Not telling the insurer that the boat is chartered, lent or used for work.
- Ignoring winter storage and mooring conditions, which many insurers examine closely.
Ready when you are
Turn this into one clear request.
Save it, add what you know, and choose when to send it. A licensed broker who handles marine insurance takes it from there.
07 / Questions people ask
Straight answers
What does marine hull insurance cover?
It covers physical damage to the vessel and its machinery from named or broad perils such as collision, grounding, fire, heavy weather and sinking. Wear and tear, gradual deterioration and lack of maintenance are usually excluded. How much is paid after a total loss depends on whether the policy uses an agreed value or market value.
What is protection and indemnity insurance?
It is liability cover for the vessel's owner or operator, responding to claims for injury, death or property damage to others, and often for crew injuries and certain pollution or wreck costs. The scope depends heavily on the vessel and operation, so a broker will ask in detail about passengers, crew and waters.
Do I need marine insurance for a commercial boat?
In practice, usually. Regulators, harbours, lenders and customers commonly expect liability and hull cover, and some requirements are set by law or by licence conditions. These differ by vessel type and by jurisdiction, so a licensed marine broker can tell you what applies where you operate.
How is the value of a vessel decided for insurance?
Commonly through a survey, recent sales of similar vessels, the purchase price and the cost of refits. The policy can then agree a value at the start, or pay market value at the time of loss. Keep records of upgrades and maintenance, since they support the figure you declare.
Is this different from yacht insurance?
The ideas overlap, but commercial vessels, workboats and larger operations have different risks, such as crew, passengers and cargo. If you are insuring a private yacht, our dedicated yacht guide goes deeper on that. For a working or chartered vessel, the questions here are a better starting point.
General information, not insurance advice. Broker.insure is a directory and request service: it is not an insurer and does not quote, bind or advise. Policy terms, availability and what is required where you live depend on your situation and on licensed professionals. Updated 2026-10-31.