What Kind of Insurance do Boat Haulers in Canada Need?

In Canada, professional boat haulers are required to carry specific types of insurance to protect the vessels in their care and cover third-party liabilities. The two primary types of coverage a licensed carrier must maintain are:

• Cargo Liability Insurance: This is the most critical coverage for the boat owner, as it specifically covers the vessel during transit. It provides protection for physical damage to the boat during road transport and typically covers the loading and unloading process when specialized equipment like a hydraulic trailer is used. Limits are often based on the boat’s weight or a declared value.
• Commercial General Liability (CGL): Licensed carriers generally carry between $1M and $2M in general liability insurance. This protects against third-party bodily injury or property damage that may occur during the hauling process.

While the hauler provides these coverages, boat owners should be aware of the following requirements and recommendations:

1. Overland Transit Endorsement: Most standard marine (hull) policies exclude damage that occurs while a boat is on a trailer. Owners must contact their own insurer to add a transit endorsement or rider to ensure their hull coverage remains active during the move.
2. Regulatory Standards: Carriers must operate in compliance with Transport Canada marine safety standards and provincial regulations, such as Ontario’s mandate for minimum liability insurance for towing vehicles on public roads.
3. Verification: Owners are advised to request a Certificate of Insurance from the hauler to verify that the cargo liability limit at least equals the vessel’s total value.