Boat and Watercraft Coverage

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Protect your boat or yacht with a watercraft policy

Boats and personal watercraft can be a lot of fun, as well as provide wonderful bonding time with family and friends. They can also cause a significant monetary drain if you don’t have the right personal watercraft insurance. Boats can be damaged by wind, rain, hail, lightning and waves; by fire; by theft or vandalism; by collisions; or during transport. The right boating insurance can protect you from all of these calamities and more.

Kelly Klee partners with our insurers to offer protection for personal watercraft of all sizes and types, including sailboats, in the following categories: jet skis, yachts, small boat, mega-yachts.

What is watercraft insurance?

Protection beyond standard watercraft insurance policies

Kelly Klee coverage advisors are experienced and knowledgeable about the special insurance needs of all sizes and types of boats. Every policy we put in place is custom designed for our clients because every vessel and its ownership are different.

How Kelly Klee is Different

A special class of coverage

Kelly Klee offers coverage not available through mass-market insurance


Pays the value that you’ve agreed on with the insurance company ahead of time if your vessel is a total loss


Provides coverage if you or the guests on your boat are injured as a result of the actions of another boater who does not have boat liability insurance (which is not a mandatory coverage for all boaters)


Pays for items damaged or destroyed on board a vessel, including tenders, fine art, personal property and furnishings


Can be customized to meet your needs and may include legal defence costs, pollution clean up and containment, marine environmental damage and wreck removal

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What does watercraft insurance cover?

Enjoy time on the water knowing you are properly covered

Whether it be a high-value automobile or a high-value yacht or boat, having proper insurance protection in place is essential. Just as being on the water provides feelings of peace and calmness, so does knowing that if the unexpected happens, your yacht or boat insurance is going to provide you the financial protection you need.

Generally, anyone who has your permission to drive your boat is covered. The exceptions to this are your boat being operated by professional marine personnel and if the policy has a “Named Operator” endorsement that only covers listed operators.

Most policies include liability for water sports. Consult with Kelly Klee if you plan on using your boat for water skiing, wakeboarding, or other water sports.

Typically, your vessel will only be covered by your homeowner’s insurance if damage occurs while it’s on your property. Check with Kelly Klee and verify the limits on your high-value homeowner’s policy.

We recommend an “All Risk” policy, which covers most types of losses. Typical exclusions include:

  • Normal wear and tear
  • Marring
  • Denting
  • Scratching
  • Animal damage
  • Manufacturer’s defects
  • Design defects
  • Ice and freezing
Kelly Klee
Standard Market
Worldwide protection
Ability to provide pre-defined or worldwide navigation based on specific cruising plans
Only U.S and Canadian inland waters; limited coastal cruising
Value of vessel
Limited capacity for higher values
Comprehensive Protection 
Full P&I limit coverage (no sub-limits)
Sub-limits per person for bodily injury
Indemnity (P&I)
For bodily injury, property damage, pollution, marine environmental damage
Per accident for bodily injury and per accident for property damage
Defense costs
In addition to the P&I limit
Included within the P&I limit
"All risk" coverage
Coverage for all risks, except those that are specifically excluded
Coverage subject to exclusions; may include named perils only
Waived for total loss or collisions with third party at-fault vessels or damage to navigational electronics due to lightning
Deductible applies for all losses to hull, contents and electronics

How much watercraft coverage do you need?

Special care is required when evaluating coverage for watercraft

The best protection you can have is “Agreed Value” coverage. In the event of a total loss, the insurer will pay you the full insured amount. You’ll want to steer away from “Actual Cash Value” coverage, which deducts depreciation from your benefit.

Some insurers will incorporate new ownership into their rate calculations because of claims related to inexperienced owners. Kelly Klee recommends that all boat owners, especially first-time owners, complete a boating safety course.

How to get started

Great coverage starts with a plan

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Get started by filling out our easy-to-use and follow online application — it's secure and only takes a few minutes to complete.

Illustration of two people talking. One is a customer, and the other is an insurance specialist providing advice

Our specialized coverage advisors will handle the rest! They will start by shopping the market for you based on your unique needs and will make recommendations.

Illustration of a custom insurance plan

We deliver you a custom plan with clear recommendations. You get to choose what options work best for you!

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Important Additional Coverage 

Broader and more specialized coverage for yachts

For owners of yachts and mega-yachts, a wide variety of additional features are also available, ranging from a hull deductible waiver to liability coverage for captain and crew to the ability to add a marina as an Additional Insured, among others. The specific choices you make will determine your total yacht insurance cost.

Yacht coverage is broader and more specialized. Yachts typically travel further and have unique exposure, such as a crew on board. Some benefits you want to have in your yacht policy include:

Marinas, yacht clubs, and similar facilities where you keep your yacht are included as Additional Insureds.

Protection for fines and penalties resulting from marine environmental damage (as defined in your policy).

Search and rescue benefits for expenses incurred with a governmental unit, such as the United States Coast Guard or other branches of the U.S. military.

Boat show and demonstration coverage.

Temporary substitute watercraft coverage for you to temporarily charter another vessel if your yacht is inoperable due to a covered loss and can’t be repaired within 72 hours.

Who has the best watercraft insurance? 

If you qualify, private client insurance carriers offer the best protection

Private client insurance is specifically designed for individuals who have more to protect—either in quantity, value, or both—it is only offered by select carriers that specialize in serving the high-end market. Coverage is comprehensive, limits are higher and there are more features when compared to typical mass-market insurance products.  

Chubb Insurance logo

For total loss settlement, Chubb pays the entire agreed amount, with no deductible. Eligible vessels can receive replacement cost coverage up to 120% of the vessel’s insured amount.

AIG logo

AIG offers dedicated loss prevention services ranging from crew first aid training and storm preparedness to on-board art collection management.

If you live in a coastal area, PURE Member Advocates can also help you prepare for hurricanes. Your policy even covers haul-out and storage expenses to protect your boat from a named storm.

Cincinnati offers coverage for your personal effects, vermin damage, towing, emergency assistance, wreck removal and search and rescue.

Kelly Klee works with all of the most prestigious private client insurance companies.