Boat and PWC insurance is not legally required in Ontario. However, there are circumstances where you will be required to carry insurance by a marina or financing company.
Is boat insurance mandatory in Ontario?
Ontario does not have a law that requires you to carry insurance on your boat or PWC. This is why you don’t get a liability (pink) slip with your boat insurance policy as you do with your auto insurance. Even though boat insurance is not required, you may still be asked for proof of insurance if you are stopped by the police. You should keep an updated copy of your insurance on your vessel just in case.
There may be times when you have no choice but to purchase insurance. Marinas will require proof of insurance before they will allow you do use the marina or store your boat on their property.
If you are financing your boat, the financing company will require you to carry insurance before they will approve your loan. In addition to insurance, they will ask to be added as a loss payee on your policy.
Most claims involve striking a submerged object. Often, the entire motor has to be replaced at a cost of $10,000 or more. Also, losses don’t just occur during boating season. Imagine getting your boat out of storage in the spring to find that a family of raccoons has moved into your boat and destroyed the interior. The real question is why wouldn’t you insure your boat and protect a valuable asset?
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