Boat liability insurance, which also may be called watercraft liability coverage, typically contains two types of coverage:

Watercraft bodily injury liability coverage:
May help prevent you from paying out of pocket for medical bills and other related costs — like loss of income — when someone is injured in an accident you caused with your boat or personal watercraft.
Watercraft property damage liability coverage:
May help cover the costs of repairing or replacing another person's boat or property when you damage it in an accident with your boat. This type of coverage typically kicks in after a collision, but it may also help in other scenarios. For instance, if you have an accidental fuel spill that damages someone's property, watercraft liability insurance may help cover clean-up costs. Liability insurance may also help pay for wreckage removal if a covered boat accident requires raising, removing, or towing your watercraft from the water.

It's important to note that boat liability insurance does not cover your medical bills or your boat repairs after an accident. You may want to look into medical payments coverage or boat property coverage for help with your own expenses after a boating accident.