Liability Insurance for Watercraft Racing

Watercraft refers to vehicles used in and on water. The term includes boats, ships, and hovercraft. Watercraft racing could include everything from the Oxford and Cambridge boat race to races involving personal watercraft such as Jet Skis. When combining racing with watercraft, risk can be high. Accidents do occur. This risk makes insurance for watercraft racing essential for individuals and businesses operating in this area.

While watercraft like Jet Skis are frequently used for leisure, adding the racing element takes things up a notch in terms of risk. The combination of rigorously designed vehicles, competitive sportspeople, and water is exciting, but sometimes leads to tragic accidents. For this reason, best safety practices are critical, and insurance for watercraft racing is a must.

Risks of Watercraft Racing

Watercraft racing involves heavy equipment operated at high speeds in unpredictable water. These and other factors create risks that fall on race participants and organizers. Here are the top risks you should consider when determining what type of insurance you need.

Bodily Injury

Watercraft racing comes with a significant risk of injury on the water. While racers may have additional training, they also operate in a more dangerous environment, which could increase the potential for causing harm to other boaters or even spectators. In addition to the risk of drowning, injuries due to collisions, such as broken bones, are also possible. In severe cases, collisions or other incidents could result in death.

The U.S. Coast Guard (USCG) noted 495 fatal incidents nationwide involving watercraft in 2024. According to the USCG, the most common vessel types involved in incidents are open motorboats and personal watercraft, such as Jet Skis.

Property Damage and Environmental Hazards

It’s imperative not to overlook the risk to equipment and property. Such risks include property damage to watercraft or docks, accidents while towing, and theft. Collisions are the most frequent first event in boating incidents, making up 56% of national incidents in 2024. These could include collisions with other watercraft or surrounding land, docks, or solid objects. The damage following a collision could be extensive, with high costs incurred by the operator or even the event organizer for allowing damage to occur.

Boats can cause property damage and harm the environment. Fuel and oil spills can pollute the water, and cleaning and maintenance before the race can introduce chemicals into the water. During a boat race, many vessels are gathered in one place, increasing the potential for environmental damage.

Legal and Financial Consequences

Injuries, death, property damage, or environmental harm could result in significant legal and financial consequences for racers or event organizers. In November 2024, during the Florida Powerboat Club Poker Run, a speedboat crash ejected six people, killing one. The operator was charged with homicide and multiple misdemeanors.

In other cases, families might sue operators or event organizers for significant sums, up to millions of dollars. The legal costs associated with these cases can mount quickly, making watercraft racing insurance a wise investment for any individual or business in this industry.

Insurance for Watercraft Racing and How XINSURANCE Can Help

With such potential for spiraling lawsuits, insurance for watercraft racing can provide some much-needed peace of mind so that organizers and competitors can focus on what they do best. XINSURANCE can help identify a solution for this industry, in which it can be challenging to acquire coverage.

If you have been denied coverage due to past experiences, your insurance has been canceled or will not be renewed, or you are concerned about gaps or exclusions in your coverage, we may be able to help find suitable watercraft or Jet Ski racing insurance solutions.

XINSURANCE is an insurance partner that identifies specialty liability insurance solutions, including boat and personal watercraft insurance. Our brand is powered by Evolution Insurance Brokers, LC (“EIB”), an excess and surplus lines insurance brokerage with an all-in-one approach. We can often find solutions despite a claims history or when an individual or business has been denied.

The insurance solutions we identify may include coverages for things like third-party injury, property, or equipment damage. In the case of a covered claim, these solutions may help cover legal costs or damage expenses up to policy limits.

Other Ways to Reduce the Risks of Watercraft Racing

Watercraft liability coverage solutions may help protect you if an incident occurs. You can also do several things as a participant or event organizer to reduce the risks of an incident. These include:

• Safety training: Boaters should take a boating safety course approved by the USCG Auxiliary. Organizers should require such courses for event participants.
• Extensive preparation: Racers can become more familiar with the course and boating conditions in the area. Organizers can carefully plan the course and create buffer zones for bystanders.
• Emergency planning: Should an emergency occur, plan how you would respond, either as an individual or as the organizer. Prior planning can reduce the potential for severe consequences.

Contact XINSURANCE for a Quote for Insurance for Watercraft Racing

For a quote for watercraft racing insurance, don’t hesitate to get in touch. Make the most of our skills in identifying specialty liability insurance solutions. Our team is looking forward to learning more about your circumstances and your needs.

Authored by Rick J. Lindsey, President, Chairman, and CEO of XINSURANCE

Rick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Rick J. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick J. Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick J. Lindsey discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Rick J. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick J. Lindsey to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. XINSURANCE also specializes in helping individuals and businesses who live a lifestyle or participate in activities that make them difficult for traditional carriers to insure. If you’ve been denied, non-renewed, or canceled coverage, don’t give up quite yet. Chances are XINSURANCE can help.