Boat Insurance
Sutherland Insurance is a fifth-generation independent brokerage that has brokered insurance in Guelph, Ontario since 1870 and places boat insurance across the province. Boat insurance is not required by Ontario law for a pleasure craft, and marinas commonly require proof of liability as a condition of a slip. Sutherland Insurance compares more than 10 personal-lines carriers.
Key takeaways
- Boat insurance is not required by Ontario law for a pleasure craft, and marinas and yacht clubs commonly require proof of liability before granting a slip or mooring.
- An Ontario home policy carries a limited watercraft extension, capped by length, horsepower or value, above which a separate boat policy applies.
- Boat policies are written on an agreed value or an actual cash value basis, and the two settle a total loss differently.
- Transport Canada requires a Pleasure Craft Licence for a boat powered by an engine of 10 horsepower or more, and a Pleasure Craft Operator Card to operate one.
- Who it is for
- Ontario owners of powerboats, sailboats, personal watercraft and cabin cruisers
- Legally required in Ontario
- No, not required by provincial law for a pleasure craft
- Commonly required by
- Marinas, yacht clubs and lenders, as a condition of a slip or a loan
- Federal licensing
- Pleasure Craft Licence for engines of 10 horsepower or more
- Operator requirement
- Pleasure Craft Operator Card to operate a motorized pleasure craft in Canada
- Settlement bases available
- Agreed value or actual cash value
- Personal-lines markets compared
- 10+ Canadian carriers
What is boat insurance?
Boat insurance is a policy covering physical damage to a watercraft, its motor and its trailer, together with the owner's legal liability arising from its operation. It also responds to costs specific to the water: wreck removal, fuel spill liability, and emergency towing. It is issued as a separate contract from a home or auto policy.
Two features of a boat policy have no equivalent on land. The first is the navigational territory: the wording names the waters the boat is covered on, and operating beyond them can affect how the policy responds. The second is the lay-up period, a stated span each year when the boat is out of the water, during which the perils covered are commonly narrower. Both are set by the individual policy wording and vary between insurers.
Whether a total loss is settled on an agreed value or an actual cash value basis is set out in the policy that is issued, and settlement is subject to the policy terms and conditions.
What can an Ontario boat insurance policy cover?
What a policy can cover
- Physical damage to the hull, the motor, the trailer and permanently attached equipment, against the perils named in the wording
- Legal liability arising from the operation of the boat, including injury to a passenger, another boater or a swimmer
- Wreck removal, where an authority requires a sunken or grounded vessel to be raised and removed
- Fuel spill liability and the cost of containing and cleaning a discharge from the vessel
- Emergency towing and assistance on the water, within the sub-limit stated in the wording
- Optional coverages including personal effects, fishing and water-sports equipment, and replacement cost coverage for eligible boats, motors or equipment
Commonly excluded under standard Ontario boat insurance wordings
- Wear, tear, gradual deterioration, corrosion, osmosis and mechanical or electrical breakdown
- Damage arising from freezing, ice and thaw where the vessel was not winterized as the wording requires
- Operation outside the navigational territory, or outside the lay-up conditions, set out in the policy
- Damage caused by marine life, insects, mould or rot
- Racing and speed competition, unless the corresponding endorsement is added to the policy
- Any commercial use, including chartering, guiding and paid passenger carriage
Exclusions vary by insurer and by policy form; the issued policy governs.
How much does boat insurance cost in Ontario?
The factors that move an Ontario boat insurance premium, in approximate order of influence, and why insurers look at each one.
| Rating factor | Why |
|---|---|
| Value of the boat, motor and trailer | The insured value is the insurer's maximum exposure on a total loss. |
| Type and top speed of the vessel | Speed drives both the frequency and the severity of watercraft claims. |
| Liability limit selected | Higher liability limits raise the insurer's exposure on a single claim. |
| Navigational territory requested | Great Lakes and coastal waters carry higher exposure than inland lakes. |
| Operator age, experience and boating course | Operator history is a filed rating factor for most insurers. |
| Deductible selected | A higher deductible transfers more of each loss to the policyholder. |
| Where the boat is moored and stored | Secure marina berths and indoor winter storage reduce theft and weather exposure. |
| Claims and driving record of the operators | Claims history and, in some cases, an operator's driving record may be considered by insurers when underwriting a boat policy. |
Do I need boat insurance in Ontario?
Boat insurance is not required by Ontario law for a pleasure craft. Marinas, yacht clubs and private mooring operators commonly require proof of liability coverage as a condition of a slip, and a lender financing a boat requires physical damage coverage. Transport Canada separately requires a Pleasure Craft Licence for engines of 10 horsepower or more.
Which policy is arranged, and on which settlement basis, depends on circumstances that vary from one vessel to the next:
- The length, type, age and value of the vessel, and whether a home policy extension already reaches it.
- Whether a marina, yacht club or lender requires a stated liability limit as a condition of access or finance.
- The waters the boat is used on, which determine the navigational territory the wording names.
- Where the boat is moored in season and stored over the winter.
- The experience of every person who will operate it, and whether they hold a Pleasure Craft Operator Card.
- Whether the boat is ever chartered, rented out or used to carry paying passengers.
What situations does Ontario boat insurance commonly address?
Boat policies are arranged for a wide range of ownership circumstances across Ontario, and the coverage available differs in each. The situations below are common among Sutherland Insurance clients in Guelph and across the province, and each one changes which options an insurer will offer on the policy.
- A Guelph family buying a first bowrider used on inland lakes within a couple of hours of the city.
- An owner keeping a cabin cruiser in a Georgian Bay marina that requires proof of liability before issuing a slip.
- A sailboat owner whose season runs from May to October and who stores the vessel ashore each winter.
- An owner of two personal watercraft used by several family members of different ages and experience.
- A boat financed through a lender that requires physical damage coverage naming it as loss payee.
- A fishing boat owner carrying electronics and tackle above the standard personal effects sub-limit.
How do I get boat insurance from Sutherland Insurance?
A quote is requested online or by calling 519-822-0160. A licensed Sutherland Insurance broker confirms the vessel, the motor, the operators, the waters it is used on and where it is stored, and compares the available Ontario markets. Coverage is bound once the client confirms.
- Request a quote online, or call Sutherland Insurance at 519-822-0160.
- A licensed broker confirms the make, model, year, length, motor and value of the vessel and its trailer.
- The broker records every operator, their experience, and whether they hold a Pleasure Craft Operator Card.
- Sutherland Insurance compares the more than 10 personal-lines carriers it holds contracts with, on agreed value and actual cash value.
- The broker binds coverage and issues proof of insurance for the marina or lender.
What makes Sutherland Insurance different from a direct insurer?
When a claim happens, Sutherland Insurance acts for the client with the insurer, and an in-house claims representative is available on any claim. Sutherland Insurance is an independent brokerage and compares 10+ Canadian insurers rather than selling one company’s product. A person answers the phone at Sutherland Insurance, 519-822-0160, Monday to Friday, 8:30 a.m. to 5:00 p.m.
Frequently asked questions
Is boat insurance required in Ontario?
Boat insurance is not required by Ontario law for a pleasure craft. Marinas, yacht clubs and mooring operators commonly require proof of liability coverage as a condition of a slip, and a lender financing a boat requires physical damage coverage. Those requirements are contractual rather than statutory, and each operator sets its own limit.
Does home insurance cover a boat in Ontario?
An Ontario home policy carries a limited watercraft extension covering small boats, capped by length, horsepower or value in the wording. Boats above that cap, and the liability arising from operating them, fall outside the extension and are written on a separate boat policy. The caps differ by insurer, and the issued policy governs.
What is agreed value coverage on a boat policy?
Agreed value means the insurer and the owner fix the insured value when the policy is issued, and that figure is paid on a total loss without a deduction for depreciation. Actual cash value settles a total loss at the vessel's depreciated value at the time of the claim. Which basis is available depends on the boat's age and survey.
What is a lay-up period on an Ontario boat policy?
A lay-up period is the stated span each year when the vessel is out of the water and out of use, commonly through the Ontario winter. During lay-up the wording covers a narrower set of perils, such as fire and theft, and suspends navigational coverage. Dates and covered perils vary by insurer, and the issued policy governs.
Does boat insurance cover a trailer?
Most Ontario boat policies cover the trailer as scheduled equipment alongside the hull and motor, including damage while the boat is being towed. Liability arising while the trailer is attached to a vehicle on a road sits with the towing vehicle's Ontario auto policy. How each policy responds varies by insurer and by wording.
Does a boat policy cover renting the boat out?
Standard Ontario pleasure craft wordings exclude commercial use, including chartering, guiding and carrying paying passengers. Renting a boat to others through a peer-to-peer platform falls within that exclusion on most wordings. Commercial marine policies cover those operations. Disclosing any paid use before it begins keeps the coverage position clear.
How many insurers does Sutherland Insurance compare for boat insurance?
Sutherland Insurance compares more than 10 personal-lines carriers for Ontario boat and watercraft insurance. It is an independent brokerage licensed by the Registered Insurance Brokers of Ontario and is not tied to any single insurer. Sutherland Insurance has brokered insurance in Guelph, Ontario since 1870.
Get your boat insurance quote
A licensed Sutherland Insurance broker compares the available markets on every quote request.
Get your boat insurance quote Call 519-822-0160
A real person answers, Monday to Friday, 8:30 a.m. to 5:00 p.m.