What type of coverage does Watercraft/Yacht insurance provide?

Watercraft/Yacht insurance is designed to offer protection when the vessel is used solely for private purposes. This type of coverage typically includes both liability and physical damage protection specifically tailored for personal enjoyment rather than commercial activities.

The main aspect of this option reflects that the policy is intended for recreational use, covering scenarios such as accidents while sailing for leisure, damage to the vessel, and potential injuries to others caused by the insured while using the boat. While some watercraft insurance policies may also offer coverage for personal watercraft or limited business use, the core of yacht insurance focuses on private use.

The other options incorrectly emphasize business-related coverage or restrict protection only to certain scenarios, which does not represent the broader application of this type of insurance. Watercraft/Yacht insurance is fundamentally anchored in safeguarding personal vessels and their occupants during non-commercial activities.