Boat insurance can protect you from risks like loss, damage, theft, or injury to your boat or other marine craft, as well as any expenses you could incur due to unintentional harm to other people or property, if you own or operate a boat or other marine craft. Many insurers may provide boat or marine craft insurance that provides basic coverage for damage or loss, as well as a variety of additional choices. Some specialist boat insurers and brokers can provide coverage for less usual insurance risks and activities for boat owners.

Boats and other marine boats can be costly assets, and if you inadvertently damage another boat or marine infrastructure, you could face serious financial consequences. Marine insurance is required for the majority of boat owners. Marine insurance contracts, like car insurance, will specify either a predetermined amount or a market value as the sum covered for the boat and equipments you possess.

Physical damage coverage often pays for boat repairs necessitated by damage caused by a number of risks. The best insurance provide "all risk" coverage, which means that the cause of loss is covered provided it is not specifically excluded. Weather-related risks including as wind, rain, hail, lightning, and wave action; fire; damage or loss caused by theft or vandalism; and collision with piers, submerged or floating items, or other boats are examples of typical losses covered. It is prudent to choose a coverage that covers your boat while it is kept on land or while it is transported across land via trailer.

Regular wear and tear is sometimes excluded under boat or yacht insurance because the boat owner is responsible for maintaining their boat. Physical damage exclusions vary by company, so compare carefully to avoid unpleasant surprises later.

When shopping for marine insurance, make sure the policy covers everything you want protected. If there are exclusions, see if you may get additional coverage if necessary. For example, you may like to ensure that your caravan is adequately protected. Are you protected for towing in the event that your boat or trailer breaks down? Verify the protection of any personal items on your boat, such as fishing equipment, radar and other communication devices, mobile phones, and cameras. Do you have coverage for uninsured boater injuries to your boat or passengers?

If you participate in marine racing, you must ensure that your insurance covers you for this. If you participate in a marine competition, the event organisers may have a different insurance arrangement. You should be aware of what insurance you need to obtain on your own and what insurance may be included in the entrance price you pay to participate in the tournament.

Any damage to other people's boats or property that you unintentionally cause is covered by third-party marine insurance. You might choose this protection if your own boat is not particularly expensive, but you are going to operating it on open water, where there is a possibility of colliding with someone else's pricey vessel.

Before you purchase marine insurance, you must decide how you will utilise your marine vessel. If you intend to take it into blue water, that is, more than 250 nautical miles away from land, international waters, or even to another country, you will almost certainly need to obtain additional insurance and meet certain criteria related to the offshore level safety equipment and communication devices. Depending on recognised cyclone and storm seasons, there may also be restrictions on when you can travel into international waters.