... It will also cover legal expenses that might arise from defending a lawsuit. This type of coverage is very important to prevent financial ruin in case of an accident where you are considered negligent. Make sure you carry at least the minimum required in the state where you live. Physical damage coverage pays the cost of damage to your boat and related items. Polices may limit payments due to events such as weather or vandalism. Be sure to ask about these limits. Look for an “all risk” policy that does not list exclusions to the coverage. Make sure the policy covers all of the equipment found on or in the boat and also insures it while being transported or stored. Physical damage coverage can be written for either an agreed upon price or actual cash value (ACV). The replacement price of components can change a lot over time. ACV will take care of that problem. Medical payments coverage will compensate persons on-board for reasonable medical costs associated with an accident or incident. Some policies will cover injuries to swimmers and skiers that use your boat. Towing and assistance coverage will pay for emergency towing, emergency repairs, and providing fuel while on the water. These can be substantial depending on distance and scope of problem. Personal property coverage will handle the loss of personal items that were on-board a boat involved in an accident or theft. Uninsured boater coverage takes care of the loss of your boat and possibly injuries to you or passengers that are caused by a boater operating without liability insurance ...