Arkansas is one of the few states that legally mandates owners to carry boat/watercraft insurance if they own a vessel. However, the $50,000 minimum liability required can disappear in a flash if you are responsible for a mishap. Before purchasing your policy in Mountain Home, AR, learn about your liability options by discussing your situation with Affordable Insurance Inc.
Situations That Call for Higher Liability Limits
Enjoying your boat exposes you to unique variables, including water rescues, multiple passengers and unique environments. These factors can make standard liability limits very risky in some scenarios. Owners should strongly consider increasing their boat’s liability limits or purchasing an umbrella policy if any of the following apply:
- You anchor or dock in high-traffic commercial marinas or areas with high numbers of watercraft.
- You frequently host multiple passengers or engage in waterspouts such as tubing, water skiing or wakeboarding.
- Your assets outweigh your primary policy limits.
- You navigate federally protected waters.
These four scenarios expose you to additional risks. Navigating high-traffic waters increases the chance of boat crashes. Hosting passengers and using water toys increases the possibility that those on your boat will sustain "attractive nuisance" injuries on your watercraft or another suffers injuries. Lawyers will often recommend suing for considerable amounts.
Structuring Sufficient Liability Coverage
You have two primary ways to increase liability: bump0 up your policy limits to the highest amount possible or buy umbrella insurance. First, make sure that the highest liability limit will cover your assets, as even $1 million worth of protection can run out quickly. For many owners, an umbrella policy may be the better choice, as it provides an extra layer of protection.
If you are unsure of your needs regarding boat/watercraft insurance, Affordable Insurance Inc can help. Contact our Mountain Home, AR, office today for a consultation.
