The small boat boom which started during the COVID-19 pandemic has resulted in an increase of watercraft insurance losses, both on water and on land.

“Estonians are keen watercraft users – during the COVID-19 years, small boat operation courses attracted more learners than ever before and a record number of new vessels appeared on our waterways. Even today, interest in recreational boating has not waned. In our statistics, this translates into higher insurance losses, both on water and on land. Increasingly frequent storms in Estonia, vessels becoming stuck on shoals or damaged due to sloppy transportation, as well occasional inexperience of the operators are the main causes. The low season theft and vandalism cases are on the rise as well,” said Kristi Toomla, Seesam’s Small Boat Insurance Product Manager.

Risks also on land and in harbours

While every boat owner brushes off any thoughts of an accident, the reality is that damage to a small boat can be very costly.

According to the interviewed insurer, the average insured event payout for a small boat is between 5,000 and 10,000 euros. Most accidents are caused by rocks and other obstacles in the water.

One of the costliest accidents in recent years involved a yacht that collided with an underwater object while entering a harbour. As a result, the total damage to the keel, the hull and the mast amounted to 50,000 euros.

“Another problem in Estonia is the relatively narrow harbours, which often means that vessels are moored too close to one another, and this in turn makes it more difficult even for adept small boat operators to navigate in harbour areas. At the beginning of the high season, when new or inexperienced small boat owners launch their vessels for the first time, collisions with other waterway users are quite common,” Toomla said, citing examples of accidents involving small boats.

Storms and vandals plague small boats on land too

Storms, which have caused record losses in other insurance sectors in recent years, have not left small boats untouched either – they are in fact the main cause of such insured events. “In one instance a yacht stored on the shore capsized due to the winds during a storm, with the total damage estimated at 38,000 euros. Another vessel was pushed by the wind to a shoal. As a result, the propeller was damaged, which cost 16,000 euros to repair. Sails were also destroyed in one storm, costing 15,000 euros to replace. Vessels moored in harbours are also prone to storm damage as they are pushed against quays or other small boats by strong winds and choppy waves,” Toomla added.

According to Seesam’s representative, small boats are increasingly targeted by thieves and vandals. However, crooks are no longer content with just picking up personal items from boats. For example, a yacht being repaired was stripped of its propellers with shafts. In that instance, the damage amounted to 24,000 euros. In one reported case of yacht vandalism the intruders emptied the foam fire extinguishers. “Although people think that the boat is safe once it has been moved to its winter quarters, there has been an increasing number of thefts during the low season in recent years,” emphasised the interviewed insurer, advising readers to perform regular checks of the boat in storage.

For a safe maritime season, Seesam’s representative issues a brief safety reminder:

• Verify the technical condition: the motor, batteries and navigation equipment must be in good working order.
• Lifejackets: should be visible on board and preferably worn while operating the boat.
• Fire extinguisher: if the vessel is equipped with an inboard motor or an outboard motor of more than 25 kW, a fire extinguisher of at least 2 kg must be carried on board.
• Navigation and weather: follow navigation signs, use map apps and pay attention to weather forecasts.
• Mooring in harbours: secure the vessel carefully to avoid drifting and damage.
• Regular maintenance: helps to prevent unexpected breakdowns and accidents.
• Liability insurance: some harbours require liability insurance to cover damage caused to third parties, which is also useful when moving out of harbours.