What does boat liability insurance cover in New Zealand?
Tower has no liability-only boat policy. Liability to other people comes inside Boat Comprehensive, with marina liability and a pollution benefit. Source
QuoteHub is a Tower partner. Smiths Insurance & KiwiSaver may receive a commission if you buy. General information, not advice.
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Boat liability insurance pays when you are legally responsible for damaging someone else's property or injuring them with your boat. Tower has no liability-only boat policy. In its wording, liability is Section 2 of Boat Comprehensive, with $5,000,000 of cover in total and $100,000 of that for bodily injury to a person (Tower wording, p. 15).
The Insurance Council of New Zealand lists liability as one of the things personal marine craft insurance covers, alongside loss or damage to the craft (ICNZ). QuoteHub is a Tower partner, so this page uses Tower's wording as a worked example. Other insurers write boat policies in their own way.
Is there a liability-only boat policy?
Not from Tower. Its boat page sets out one policy, Boat Comprehensive, for boats from runabouts and yachts to jet skis (Tower boat page). The wording opens liability with the line "This is your third party cover", as Section 2 of that same policy (Tower wording, p. 15).
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Car insurance is different, because third-party-only policies exist there (see third-party car insurance). Whether another insurer sells a narrower boat product is something only its own wording can tell you.
What the liability section covers
Section 2 covers your legal liability for claims of accidental property damage and accidental bodily injury that arise from your boat or trailer. The damage or injury must happen during the period of insurance and within New Zealand's geographical limits (Tower wording, p. 15). Three extensions matter in practice:
- Anyone using your boat with your permission is covered too, if they follow the policy's terms and are not insured for that liability under another policy.
- You are covered for liability when you use a boat you do not own with the owner's permission, though not for damage to that boat.
- Reasonable defence costs you incur with Tower's approval are included, but not legal costs for criminal, maritime or traffic proceedings (Tower wording, p. 15).
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The $5,000,000 is a total for the period of insurance, not per claim. Unless a benefit says otherwise, its maximum sits inside the liability sum insured and is not on top of it (Tower wording, p. 16). Your certificate of insurance can add further limits.
Liability benefits and limits at a glance
Tower's liability cover is $5,000,000 in total, with smaller or separate limits for bodily injury, pollution, marina liability, water-skiing, reparation and defence costs. The table gives each limit and its page in the wording.
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| Benefit | What it covers | Limit in Tower's wording |
|---|---|---|
| Liability protection | Accidental property damage and bodily injury to others arising from your boat or trailer | $5,000,000 in total, with $100,000 for bodily injury to a person (wording, p. 15) |
| Discharge of polluting substances | Property damage and clean-up costs from a sudden and accidental discharge of fuel, lubricants or sewage from holding tanks | $500,000 for any one event or series from the same event (wording, p. 16) |
| Marina liability | Liability imposed on you by a lease or agreement for a berth or storage facility | $5,000,000 in total (wording, p. 17) |
| Water-skiing | Liability for a skier you tow, or for harm a skier you tow causes to others | $100,000 per event for death or injury, $5,000,000 per event for property damage (wording, p. 17) |
| Reparation | Reparation a court orders you to pay a victim after an offence | $1,000,000 in total (wording, p. 15) |
| Defence costs | Your defence costs if you are charged with manslaughter or under section 65 of the Maritime Transport Act 1994 in connection with the boat | $5,000 for manslaughter defence costs in the benefits summary (wording, p. 4); Tower's written approval is needed before costs are incurred (wording, p. 16) |
Marina liability and berth agreements
Tower's marina liability benefit covers the liability a berth or storage lease puts on you, for events arising from your boat in New Zealand, up to $5,000,000 in total (Tower wording, p. 17). A marina, boat club or storage yard may have you sign such an agreement, and its terms decide what you owe if your boat causes damage.
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There are two limits to read. If you also have liability cover with Tower under another policy, it pays under only one policy for each event. And there is no cover where the agreement makes you liable for loss or damage the law would not have held you responsible for (Tower wording, p. 17). Signing away more than the law would ask of you is not insured.
The policy also excludes liability incurred by boat builders or repairers, paid skippers or crew, yacht clubs or marina operators for third-party injury or damage that results from their negligent repair of your boat, or that happens while they are in charge of it other than in an emergency to limit a loss (Tower wording, p. 19).
Maritime NZ does not list insurance among the skipper's legal responsibilities, which centre on the safety of the boat and everyone on board (Maritime NZ). What a marina requires varies, so check your agreement. If it asks for evidence of insurance, your certificate of insurance shows the cover in force.
Pollution, fuel spills and sewage
The pollution benefit pays property damage and clean-up costs from a sudden and accidental release, plus legal expenses Tower approves. The limit is $500,000 for one event or a series arising from the same event (Tower wording, p. 16). It does not respond to:
- your own recklessness, deliberate actions or misconduct, or that of anyone you let have the boat;
- fuel or lubricants that were not being used in connection with operating the boat;
- fines, or punitive, aggravated or exemplary damages (Tower wording, p. 16).
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The general exclusions also remove pollution that this benefit does not cover (Tower wording, p. 23).
What the liability cover leaves out
Tower's liability section excludes injury that ACC covers, injury to you, employees, your own property, chartered boats, fines and contractual promises, among other things. The exclusions are on pages 19 and 20 of the wording (Tower wording, pp. 19, 20):
| Excluded | In plain terms |
|---|---|
| ACC bodily injury | Injury where the Accident Compensation Act 2001 provides cover to any extent |
| Injury to you or the person in charge | Not under liability; a small accidental death and injury benefit applies instead |
| Employees and contractors | Death or injury to anyone employed or contracted to operate the boat |
| Your own property | Loss of or damage to property you own or have in your care, custody or control, including what is being carried or loaded |
| Chartering or leasing | Any boat you are chartering or leasing |
| Towing the boat by road | Damage while the boat is attached to a moving vehicle, other than at launching or hauling out, because car insurance should answer |
| Towing people in the air | Parasailing or similar |
| Fines and penalties | Fines, penalties or reparation ordered under the Health and Safety at Work Act 2015 |
| Criminal, maritime or traffic legal costs | Except the defence costs benefit for manslaughter or section 65 charges |
| Contractual promises | Responsibility you agreed to accept when the law would not have held you responsible |
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The ACC exclusion matters most. ACC's no-fault scheme covers people injured in an accident in New Zealand (MBIE), so the bodily injury part of the liability cover has less to do where ACC responds. Tower's wording excludes injury ACC covers to any extent. See ACC and private insurance for how the two fit together.
Separately, the whole policy does not cover a boat operated by someone who is unlicensed where a licence is needed, lacks adequate experience or is affected by intoxicating substances that contributed to the loss (Tower wording, pp. 20, 21). The full list of conditions is in what boat insurance covers.
Water-skiing and wakeboarding liability
Towing a skier is covered only on conditions. Wakeboarding and aquaplaning count. You must use recognised, commercially made water-ski equipment, and a person besides the driver must be on board competently watching the skier (Tower wording, p. 17). Without that observer, the benefit does not apply.
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Towing anything in the air is excluded, and so are other sporting and recreational activities apart from this benefit (Tower wording, p. 20).
Getting a quote from Tower online
Have the boat's type, make, model, age and value to hand, with its motor and trailer details, where it is kept and who will drive it. QuoteHub's link opens Tower's online quote, where you add the boat and answer Tower's own questions. Liability is part of the policy you are quoted for, and the boat insurance cost guide explains what moves the price.
Questions people ask
Can I get boat insurance with liability only?
Not with Tower. Liability protection is Section 2 of Boat Comprehensive, and the policy is written as a whole (Tower wording, p. 15). Another insurer's range may be built differently, which its wording will show.
Is boat liability insurance compulsory in New Zealand?
Maritime NZ says the skipper is legally responsible for the safety of the boat and everyone on board, and it lists no insurance requirement among those responsibilities (Maritime NZ). A marina, finance provider or club may still ask for cover in its own agreement.
Does my home or contents insurance cover boat liability?
Boat cover is a stand-alone policy. Tower's house wording excludes liability from owning, using or possessing a watercraft (House Standard, p. 14). The boat insurance guide sets out what the house and contents wordings say about boats and small craft.
What is the liability limit on Tower's boat insurance?
$5,000,000 in total for the period of insurance, with $100,000 for liability arising from bodily injury to a person (Tower wording, p. 15). Pollution has its own $500,000 benefit and marina liability a $5,000,000 benefit (Tower wording, pp. 16, 17).
Does boat insurance cover someone else driving my boat?
Yes, if they have your permission, follow the policy's terms and are not insured for that liability elsewhere (Tower wording, p. 15). The operator conditions on licence, experience and intoxicating substances still apply, so tell Tower about regular drivers.
Sources
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Reviewed by Smiths Insurance & KiwiSaver, licensed Financial Advice Provider (FSP712931) · Reviewed quarterly, when the underlying data is restated. General information, not advice on your situation. Buying through Tower's online quote is direct, without advice. QuoteHub is a Tower partner and Smiths Insurance & KiwiSaver may receive a commission from Tower.
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QuoteHub is a Tower partner. Smiths Insurance & KiwiSaver may receive a commission if you buy. General information, not advice.
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