How Does My Manitoba Boat Insurance Cover Wreck Removal?

September 8, 2025

What happens if your boat sinks? What if your boat has an oil spill? How does Manitoba boat insurance cover these unfortunate situations?

Most standard boat insurance policies include coverage for wreck removal if your boat sinks or is involved in a covered incident, such as a storm. You’ll always need to check the details of your Manitoba boat policy, though.

Many boat insurance policies can provide coverage for oil or fuel spills that result from a covered incident. Check your Manitoba boat insurance policy.

Bottom line

If your boat sank due to an unforeseen risk or accident, your Manitoba marine insurance policy typically helps cover the expenses.

Wreck removal for your Manitoba boat

Here are some exclusions that would apply to insurance coverage for a boat that has sunk:

A lack of reasonable care in the maintenance
Illegal, intentional, reckless, or malicious acts
Wear and tear; gradual deterioration
Faulty design or latent defect except when a reasonably thorough inspection could not have discovered such a faulty design or latent defect
Freezing damage unless you have taken reasonable precautions to protect your boat and its machinery during winter.

What’s a ‘covered incident’ in Manitoba boat insurance?

A covered incident in Manitoba boat insurance is an event or peril that your policy specifically includes for coverage. Covered incidents can include:

Accidents or collisions with other boats, docks, or submerged objects
Theft or vandalism of the boat or boat equipment
Fire, lightning, explosions, or weather-related damage (wind, hail, or storms)
Sinking or capsizing
Liability for bodily injury or property damage you cause to others while operating your boat

Most comprehensive Manitoba marine insurance policies use an all risk approach, meaning they cover any cause of loss unless it is specifically excluded in the policy. Common exclusions are damage from normal wear and tear, rust, corrosion, mechanical breakdowns, negligence, or unauthorized modifications.

Note: A covered incident is any event listed in your Manitoba boat policy as a cause for which you can file a claim, typically accidental, sudden, and unforeseen events that result in loss or damage to your boat or liability to others.

Oil spill or leak

Accidental fuel spills can have environmental consequences. Fuel spill liability coverage in your Manitoba boat insurance policy helps cover the expenses of cleaning up and mitigating the damage caused by a fuel/oil spill from your boat.

Exclusion for accidental discharge:

You discharge or release any fuel, chemicals, waste, or other pollutants, unless the discharge is sudden and accidental.

How do I make an insurance claim for my Manitoba boat?

You will be asked to confirm your policy details and provide up-to-date contact information when you file a claim.

You'll be asked to provide a detailed description about what happened about the sinking of your boat or fuel leakage, for example.

You will likely be contacted by an adjuster, who might also assign an additional expert to assist, such as an appraiser or contractor, depending on the type of claim.

Typically, your Manitoba marine insurance will have a deductible. That’s the amount you will need to pay out of your pocket before you receive an insurance settlement. The deductible is typically subtracted from the settlement amount.

What if I don’t have Manitoba boat insurance?

Are you comfortable with the potential financial fallout of not having boat insurance? Without insurance for your Manitoba boat, you’ll need to be prepared for any financial consequences that you could face like paying out of pocket after an accident that damaged someone’s boat.

Is liability insurance recommended for my boat in Manitoba?

It's recommended that you have $3 million or more in marine liability insurance coverage as part of your boat insurance policy to financially protect yourself as a boat owner against lawsuits, medical expenses, and repairs. You can get sued if you don’t have Manitoba boat insurance.

To sum it all up

Wreck removal and oil spills are typically part of a comprehensive Manitoba boat insurance policy unless they are specifically excluded in the policy. You can protect the marine environment and your boat with a comprehensive all-risks boat policy. Remember, though, to check the specifics of your boat insurance policy.

5 FAQs about boat insurance

Is boat insurance included in my Manitoba homeowner’s policy?

Homeowners insurance may provide limited coverage for small boats, such as a canoe or kayak, but larger boats usually require their own boat insurance policy.

If I get a loan to buy my boat, do I need Manitoba boat insurance?

If you get a loan to buy your boat in Manitoba, you will almost certainly be required to have boat insurance by your lender. Banks and other lenders typically require comprehensive marine insurance as a condition of the loan since the boat serves as collateral for the financing.

Can I skip boat insurance during the off-season if my Manitoba boat is financed?

If your Manitoba boat is financed, you won’t be able to skip marine insurance during the off-season. Most lenders require year-round insurance coverage as a condition of your boat loan.

Can I reduce insurance coverage instead of cancelling if my Manitoba boat is financed?

You may be able to reduce your Manitoba boat insurance coverage instead of cancelling it if your boat is financed, but only within the limits set by your bank/lender. You’ll need to check with your lender.

Do I need Manitoba boat insurance in the winter?

If your boat is financed, you are required to keep insurance all year round to meet lender requirements. In Canada and in Manitoba, most boat insurance policies are structured as year-round coverage.