Does the Marina Pay if My Boat is Damaged During Repairs?

June 9, 2025

Your boat is at the marina for repairs and the repair company has caused some damage to it. Whose insurance pays for the repairs?

Marina liability insurance typically protects against boat damages in the workshop.

If my boat is damaged during repairs, does the marina cover it?

When you take your boat to a marina for repairs, the marina or the repair company often assumes responsibility for the vessel while it is under their care.

This is typically governed by a "bailee" relationship, where the marina (the bailee) is responsible for safeguarding your boat. If the marina or repair company causes additional damage to your boat, they may be held liable for that damage.

In most cases, the repair company should have a liability insurance policy designed to cover damages that occur while a boat is under their care. This policy typically covers situations where the company’s negligence or mistake leads to further damage.

For example, if a mechanic accidentally damages your engine while attempting a repair, the repair company’s insurance should cover the cost of the damage.

Make sure to always check that you’re working with a professionally licensed marina and read their service contract before handing your boat over for repair.

What if I damage my boat doing repairs at a marina?

Your personal boat insurance probably won’t cover any damage done by you or a friend when trying to repair a problem yourself.

With potentially complex fixes, it’s always better to report the damage to your boat insurance provider and take the boat directly to a trained and insured professional for repairs.

Your boat insurance as extra protection

Your boat insurance may come into play, but it usually acts as a secondary option.

If the repair company or marina’s insurance does not cover the full extent of the damage, or if there is a dispute about liability, you may need to file a claim with your own boat insurance provider.

Your insurer should pay for the damages and then you should seek reimbursement from the marina or repair company’s insurer through a process known as subrogation. If this happens to you, contact your boat insurance expert for a detailed explanation of what to expect.

Check your policy: Does your boat insurance cover all accidental damage?

Some policies include coverage for damages that happen while your boat is in a marina or under repair, but the specifics can vary. Your boat insurance provider can help clarify the details of your coverage and advise on the best course of action.

Check your contract with the marina

When you leave your boat at a marina for repairs, you should always sign a contract or service agreement. Never leave your boat with a repair yard that doesn’t have a contract.

Look for clauses that limit the marina’s liability for certain types of damage or specify how disputes will be resolved. Some marinas may require you to sign a waiver that shifts more responsibility onto you as the boat owner.

Always read these documents carefully before agreeing to them because they can impact your ability to recover damages if something goes wrong. If something seems off, check contracts from a couple of different boatyards or check their reviews online to see what other customers are saying.

What do I do if the marina has damaged my boat?

If your boat is damaged while in the marina for repairs, take the following steps:

Document the damage: Take photos and detailed notes of the damage. This documentation will be required for any insurance claims or disputes.
Notify the marina: Report the damage to the marina or repair company immediately. Provide them with your documentation and ask for a written explanation of how the damage occurred. Keep all communications in writing for legal purposes.
Review contracts and policies: Look over any contracts you signed with the marina and review your boat insurance policy to understand your rights and responsibilities.
Contact your boat insurance company: Inform your boat insurer of the situation. A boat insurance expert can give peace of mind by guiding you on whether to file a claim, what to expect, and how to proceed with recovering damages.
Consider legal action: If he marina or repair company refuses to accept responsibility, you may need to consult with a lawyer to explore your options.

Overall, if your boat is damaged during repairs at a marina, the boat yard’s insurance will usually cover the costs. Your own boat insurance may also provide coverage if there are disputes or if the repair company's policy doesn’t fully cover the damages.

5 FAQs about boat insurance

What isn’t covered by marine insurance?

Most boat insurance policies exclude wear and tear, meaning damage that comes from ordinary use, such as deterioration from weather.

Is boat insurance mandatory in Canada?

Boat insurance is not legally required in Canada, but if your boat is financed your lender may require it. Many marinas also require $3 million in liability insurance for mooring privileges.

Does home insurance cover my boat?

It may cover a rowboat or canoe but wouldn’t cover a cabin cruiser worth thousands of dollars, for example. Your home insurance typically will not cover your boat in the event of fire, theft, or other loss. If you have items stolen from your boat that’s stored in your garage or in a shed on your property, depending on their value, they may be covered by your homeowner’s insurance policy.

Why is third-party liability insurance important for a boat?

You’re covered if you cause property damage or bodily injury to a third party when using your boat.

Do I need boat insurance in the winter?

Many lenders, marinas, and storage yards require boat insurance all year. Maintaining coverage can protect your boat from risks like theft, fire, and weather damage, even when stored.