I’ve been at my slip for 10 years. New owners bought the marina and sent a letter: “Effective immediately, all vessels must carry $1,000,000 in Watercraft Liability. Provide COI or vacate.” My current policy maxes out at $500,000.
Key Takeaways
- Marinas Set the Rules: Private marinas can demand any insurance limit they want. $1M is becoming the 2026 standard due to rising litigation costs and yacht values (if you hit the Viking next to you, $500k won’t cover it).
- Primary Limits Cap Out: Most standard boat insurers (Progressive, Geico) cap liability at $500,000. They simply won’t write a $1M primary line.
- The Umbrella Solution: To get to $1M, you usually need a Watercraft Umbrella (or Excess Liability) policy. This stacks on top of your primary $500k to reach the total.
- Pollution Limit: Check if the marina also demands $1M in Pollution liability. This is separate from General Liability.
The “Why” (The Trap)
The trap is “Underwriting Capacity.”
Automated underwriting systems stop at $500k. To get higher, you need a manual underwriter or a specialized carrier.
The marina doesn’t care about your boat; they care about you burning down their dock or sinking the mega-yacht next door.
The Investigation (I Tried to Buy $1M)
I called around to hit the $1M target.
BoatUS
- Result: They can often write $1M primary liability specifically for marina requirements, but you have to ask for it.
Travelers / Chubb
- Result: Standard for them. They write yacht policies with $1M+ limits routinely.
Geico + RLI Umbrella
- Result: Geico writes $300k. You buy a standalone Umbrella policy from RLI (approx $200/year) to bridge the gap to $1M.
Comparison Table
| Method | Liability Limit | Annual Cost Increase | Difficulty |
| Increase Primary | $500k -> $1M | Low ( 50−50− 100) | Easy (if carrier allows) |
| Add Umbrella | $300k + $1M | Medium ($200+) | Medium (Two policies) |
| Change Carrier | $1M (Yacht Policy) | Variable | High (New survey needed) |
Step-by-Step Action Plan
- Call Your Agent: Ask, “Can you bump my P&I Liability to $1 Million?”
- Get the ‘Named Insured’ Info: The marina usually wants to be listed as an “Additional Insured” or “Interested Party.” Get their exact legal name and address.
- Request the COI: Once updated, email the Certificate of Insurance (COI) to the dockmaster immediately.
- [IMAGE: Sample Certificate of Insurance showing the ‘Liability Limit’ box highlighted]
- Check Wreck Removal: While you are at it, ensure Wreck Removal is also high, as marinas are strict about sunken boats.
FAQ
Does the Umbrella cover my car too?
A personal umbrella usually covers Home, Auto, and Boat. A standalone Marine Umbrella covers only the boat.
Why did the marina raise the limit?
Because one boat fire can cause $10M in damages in a crowded harbor.