Uninsured watercraft coverage and liability coverage are similar in that they both help cover expenses resulting from an accident with another boat. However, which coverage applies depends on who is found responsible for the accident.

Uninsured watercraft coverage helps pay for injuries people on your boat sustain from another boater who does not have insurance. Meanwhile, liability coverage helps pay for expenses if you, the boat insurance policyholder, accidentally damage another person's property or injure another person. If you are responsible for a boat accident, liability coverage can help prevent you from paying out of pocket for the resulting damage to the other person's property or their related medical expenses.