If you own a leisure boat in Mallorca, your insurance has to answer three questions: what happens if you cause damage to someone else, what happens if your own boat is damaged, and who helps you when something goes wrong at sea. This guide explains what boat insurance covers, what is compulsory and what is optional (in general terms), what affects the premium and what to know if you run a marina, yacht club or boatyard business.
What is boat insurance and why do you need it?
Boat insurance is a policy designed for the risks of using and enjoying a leisure boat. It can be built in modules, combining cover of different kinds. The two main blocks are third-party liability (damage you may cause to other people or their property) and own damage (damage to your own vessel).
Mallorca has intense boating activity: weekend outings, a busy summer season, crowded bays and shared moorings in harbours and clubs. More boats in the same space means a higher chance of a scrape while manoeuvring, a collision or damage to a third party. A policy that fits your boat is not a formality; it is what lets you deal with an incident calmly.
At Grupo Baeza we are an exclusive Generali agency and we advise on boat insurance from our offices in Palma, Inca and Sóller. You can see the product on our nautical insurance in Mallorca page.
Compulsory or optional: what to keep in mind
In general, Spanish rules require certain leisure and sports vessels to hold compulsory third-party liability insurance, regulated by Royal Decree 607/1999. Which vessels are obliged depends on their characteristics and use, so the sensible step is to check your own case with your broker.
What that compulsory policy does not do is repair your boat. Damage from a collision, fire, theft or storm is dealt with by optional covers that you choose.
| Compulsory (third-party liability) | Optional covers | |
|---|---|---|
| What it protects | Damage to third parties (people and property) within the regulation limits | Your own boat, equipment and extra services |
| Who requires it | The regulations, depending on the type of vessel | You decide, based on value and use |
| Examples | Damage to another boat or a harbour installation | Own damage, theft, assistance, towing, legal defence |
Many policies allow you to raise limits above the regulatory minimums. Always ask about the real limits, not just the name of the cover.
What does leisure boat insurance cover?
Cover depends on the policy you choose. These are the points most often reviewed:
Third-party liability
Covers, within the agreed limits, damage you cause to others with your boat: injuries, damage to another vessel, a pontoon or harbour facilities.
Own damage
Protects your boat against events such as collision, grounding, fire or weather damage, as set out in the policy. It is taken out expressly and adjusted to the value of the boat.
Theft and damage in port
Usually includes theft of the boat or part of it and damage while moored. Check what counts as an accessory (outboard engine, electronics, tender) and any security conditions the policy requires.
Assistance, towing and salvage
Towing is a cover that must be expressly included in the leisure boat policy. When a claim requires it, salvage costs include the reasonable costs of towing the affected vessel. If a third party provides the service, you may need to submit the invoices to the insurer or to the surveyor assessing the case.
Other covers worth checking
- Legal defence and claims for damages.
- Accidents to people on board.
- Tender and equipment on board.
- Damage during road transport or time in the boatyard.
- Extension of the sailing area if you go beyond your usual waters.
How is the premium calculated?
There is no single rate. The premium reflects the specific risk of each boat, which is why two similar boats can cost different amounts. The main factors, without figures:
- Type of vessel: motor boat, sailing yacht, inflatable, RIB or jet ski.
- Insured value: what it would cost to replace or repair it.
- Technical features: length, engine power, year of build and condition.
- Use: private leisure or charter (with or without crew), which are treated differently.
- Sailing area: how far from the coast and how often.
- Mooring: marina, club, anchorage or dry storage.
- Cover and excess: more cover generally means a higher premium; a higher excess (the part you pay in each claim) usually lowers it.
- Claims history and the skipper’s experience.
A practical tip: compare policies with the same cover and the same limits. A lower premium can hide a high excess or a trimmed cover.
Common claims at sea and in port
- Collisions and scrapes when manoeuvring in busy harbours and coves.
- Grounding in shallow areas.
- Breakdowns that require a tow, hence the value of assistance cover.
- Storm damage at the mooring or at anchor.
- Theft of outboard engines, electronics or items on board.
- Fire or flooding caused by faults in installations or maintenance.
After an incident, make sure people are safe, inform your insurer as soon as possible, photograph the damage and do not start repairs before speaking with the surveyor.
Charter boats, boatyards, winter storage, yacht clubs and marinas
Boat insurance is not only for private owners. Mallorca has a large professional sector around the sea, and each activity has its own risks:
- Charter and rental boats: the policy can cover vessels registered in lists 6 or 7, which includes charter, with or without crew.
- Marine repairers: liability insurance for those working on other people’s boats.
- Boatyards: mechanics, electronics, rigging, fittings and general maintenance.
- Winter storage companies: custody of boats out of season.
- Yacht clubs and marinas: cover for facilities, activity and liability towards users.
If you run a marine-related business you may also need liability insurance, multi-risk cover for your premises or transport insurance. Our business insurance page brings the options together.
Five checks before you sign
- A realistic insured value. A sum below the boat’s value can reduce a payout.
- Sailing area and use. The policy should reflect how you really use the boat.
- Excess. Ask what you would pay in a typical claim.
- Exclusions and security conditions. For example mooring or anti-theft requirements.
- Assistance and towing. Check they are included and how to request them.
Review the policy every year: a new engine, mooring or use may mean it needs updating.
Tell us about your boat and we will review it with you
We help you compare cover and adjust the policy to how you really use your boat, with no obligation. We serve clients in Palma, Inca and Sóller.
Where to find us
You can visit us in Palma (Avenida Compte Sallent, 20 bajos, tel. 971 72 04 43), Inca (calle Bartomeu Coc, 14, tel. 971 88 35 25) or Sóller (calle de Bauzá, 6, tel. 971 63 34 78).
Boat insurance FAQ
Is insurance compulsory for a leisure boat?
In general, Spanish regulations require compulsory third-party liability insurance for certain leisure or sports vessels. It depends on the type of boat and its use, so confirm your case with your broker.
Does compulsory insurance cover damage to my own boat?
No. Third-party liability protects against damage you cause to others. Own damage, theft or assistance are optional covers taken out separately.
Can I insure a boat that I rent out?
Yes. Boat insurance can cover vessels registered in lists 6 or 7, including those used for charter, with or without crew. Conditions depend on the type of activity.
Is towing included?
It is a cover that must be expressly included in the policy. In a covered claim, salvage costs include the reasonable cost of towing. Check your policy conditions.
What affects the price?
Factors such as type and value of the boat, length and engine power, use, sailing area, mooring, cover and excess. Each case is assessed individually.
What should I do after an accident?
Make sure everyone is safe, tell your insurer as soon as possible, take photos of the damage and do not repair anything before speaking to the surveyor. If you are our client, we help you with the claim report.
Can boatyards, yacht clubs or marinas be insured?
Yes. We have solutions for marine repairers and boatyards, winter storage companies, yacht clubs and marinas. Tell us about your business and we will look at it.
Where can I ask for a quote?
Call 971 72 04 43, use our contact form or visit any of our three offices.
