Purchasing pleasure craft insurance provides more than the value of the boat.

Today it is being reported in New Zealand that the skipper of a boat that collided with the Russel Ferry has been ordered to pay $132,200 in reparation and consequential loss payments.

Besides damaging the ferry, the collision seriously injured the ferry’s skipper while a passenger was thrown overboard. As I understand it, the award does not include any amount for the injuries to those aboard the ferry.

It is being reported that the person held legally liable is now required to take out a loan to make the payments that have been ordered.

Most pleasure craft policies provide protection for such losses which include coverage not only for the damage to the boat that struck the ferry but the legal liability and the defence costs. This can be sub-limited. In a quick look on PolicyComparison.co.nz, our New Zealand Manager, Tony Howie advised me that coverage for this protection starts from being sub-limited to $100,000 while others provide coverage up to $1,000,000 to $10,000,000 depending on the insurer.

As such with any insurance it is important to carefully understand the extent of cover afforded by the policy. If in doubt, then I recommend you speak with an experienced general insurance broker.