Understanding Marine Insurance Terms

All-Risk Coverage:  A general insurance over the hull & machinery and equipment and includes the liability protection.  It also can include coverage on the following: medical, personal property, uninsured boaters, and emergency services

Liability Only:  Insurance for a third-party claim against the boat's owner.

Agreed-Value:  The insured value of the vessel does not depreciated during the policy period. If there is a total loss to the boat, reimbursement is based on the value listed (and agreed) on the policy.

Actual-Cash Value: Any loss reimbursement is determined by the boat's worth on the current market at the time of the loss. The insurance company's adjustors will then negotiate the reimbursement.

Protection & Indemnity Liability:  Coverage for the named insured and boat and crew. It also offers protection if a paid worker (cleaner, repairman, etc.) sues the named insured for bodily injury while on the vessel (through Longshoremen's & Harbor Workers Compensation.) It will protect the named insured if liability arises even if the boat is not in use.

Watercraft Liability:  Coverage for the named insured only. Generally, simple watercraft liability comes into play when the boat is in use or being put into use.