Are there any exemptions from Maryland’s yacht insurance requirements?

Yes, non-motorized yachts (like sailboats) and certain government or military vessels are typically exempt from liability insurance requirements in Maryland.

What happens if I don’t carry required yacht insurance in Maryland?

You could face fines, have your boat registration suspended, or be held personally liable for damages in an accident.

How much liability coverage do I need for my Maryland yacht?

Maryland requires at least $30,000 per person and $60,000 per accident for bodily injury, and $10,000 for property damage.

Maryland Yacht Insurance Requirements Explained

What You Need to Know About Maryland Yacht Insurance

If you own a yacht in Maryland, you’re probably wondering what insurance you need. Here’s the simple truth: Maryland law requires most boat owners to carry liability insurance, and there are a few key details you should know to stay legal and protected on the water.

1. Maryland’s Mandatory Liability Insurance

If your yacht has an engine with more than 2 horsepower, Maryland law says you must carry liability insurance. This insurance helps pay for injuries to other people or damage to their property if you’re at fault in an accident. The state requires a minimum of $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $10,000 for property damage. These are the bare minimums—some experts suggest getting higher limits if you can, especially if your boat is large or you often carry guests.

2. Registration and Proof of Insurance

Before you can register your yacht in Maryland, you’ll need to prove you have the required insurance. You’ll also need to carry your insurance card or a digital copy with you every time you’re on the water. Failing to show proof could lead to fines or having your boat registration suspended. Make sure your policy is with an insurance company approved by Maryland’s Department of Natural Resources.

3. Optional Coverage to Consider

While liability insurance is mandatory, there are other types of coverage you might want to protect your investment. For example:

Collision coverage: Pays to repair or replace your boat if it crashes into something.
Medical payments coverage: Helps cover medical bills for you or your passengers after an accident.
Uninsured/underinsured boater protection: Steps in if you’re hit by someone who doesn’t have enough insurance.
Total loss coverage: Reimburses you if your boat is stolen or destroyed.

These aren’t required, but they can save you from big out-of-pocket costs down the road.

What to Look For

When shopping for yacht insurance in Maryland, keep these tips in mind:

Check that the policy meets Maryland’s minimum liability requirements.
Read the fine print to understand what’s excluded (like racing, commercial use, or alcohol-related incidents).
Compare quotes from multiple insurers to find the best price for the coverage you need.

Don’t forget to talk to your insurance agent about your specific boat and how you use it. If you’re unsure, ask questions until you feel confident your policy covers your needs. Stay safe and happy sailing!