Medical Payments vs. Liability Coverage: What’s the Difference?

Medical Payments coverage and Liability (Bodily Injury) coverage are often confused, but they serve two very different purposes on a yacht insurance policy.

Medical Payments coverage is a no-fault coverage designed to handle smaller, everyday incidents. If a guest slips on deck, missteps while boarding, or suffers a minor injury while aboard, this coverage can help pay for reasonable medical expenses without needing to determine fault. It typically responds quickly and can help resolve minor situations before they escalate into formal claims. Limits are usually modest, often ranging from $1,000 to $25,000.

Liability (Bodily Injury) coverage applies in more serious situations. This coverage comes into play when you are legally responsible for someone’s injury and protects you if a claim or lawsuit arises. It covers legal defense costs, settlements, and judgments related to incidents such as collisions, wake-related injuries, or more severe onboard accidents. Because of the potential exposure, liability limits are much higher, commonly $300,000 to $1,000,000 or more.

In simple terms, Medical Payments helps address small issues quickly, while Liability coverage protects you from major financial risk. A well-structured yacht policy includes both.

If you are unsure how your policy is set up or whether your limits still make sense, our team at Sunset Yacht Insurance is always happy to review your coverage and offer guidance.