Under a boatowners policy, which statement best describes the scope of personal liability coverage?

Under a boatowners policy, which statement best describes the scope of personal liability coverage?

• A. Damages the insured must pay for liability arising from the operation, maintenance, or use of insured watercrafts
• B. Medical payments coverage pays for injuries to the insured only
• C. The insurer pays all legal costs regardless of liability
• D. Defense costs are paid only up to the policy limits

Answer: (A)

The personal liability portion of a boatowners policy covers what the insured must pay to others when they’re legally liable for injuries or property damage caused by the boat. It kicks in for incidents that arise from operating, maintaining, or using the insured watercraft, paying the third party’s damages up to the policy limits and covering defense costs in suits related to those incidents. It does not describe medical payments for the insured (that’s a separate coverage) and defense costs aren’t paid regardless of liability; they’re tied to covered claims and within the policy limits. So the statement that best describes the scope is that liability coverage pays damages the insured must pay for liability arising from the operation, maintenance, or use of insured watercrafts.

The personal liability portion of a boatowners policy covers what the insured must pay to others when they’re legally liable for injuries or property damage caused by the boat. It kicks in for incidents that arise from operating, maintaining, or using the insured watercraft, paying the third party’s damages up to the policy limits and covering defense costs in suits related to those incidents. It does not describe medical payments for the insured (that’s a separate coverage) and defense costs aren’t paid regardless of liability; they’re tied to covered claims and within the policy limits. So the statement that best describes the scope is that liability coverage pays damages the insured must pay for liability arising from the operation, maintenance, or use of insured watercrafts.