Watercraft Nonowned Insurance
Definition - What does Watercraft Nonowned Insurance mean?
Watercraft nonowned insurance provides coverage to marine vessels that the policyholder operates but does not own. It may cover both physical damages to the watercraft and legal liability, depending on the terms of the policy. Watercraft nonowned insurance may be purchased as a separate insurance policy or a rider to enhance an existing watercraft insurance.
Insuranceopedia explains Watercraft Nonowned Insurance
Before using any marine vessel that belongs to another entity, the operator should check whether their existing insurance provides coverage. They may need to purchase a separate watercraft nonowned insurance policy. Though most liability policies do cover property damage or bodily injury that result from an accident involving watercraft that the policyholder does not own, exclusions do apply. For example, it may stipulate limits on the size of the watercraft, covering boats of up to a certain size, often up to 26 feet long. Moreover, if the policyholder charges for transport of property or people, it would not covered.