Small boats and faster boats, particularly those that can be towed by a trailer, are vulnerable to theft. Underwriters must consider what precautions the owner takes in storing the boat and whether there is security in the area or facility. The fire hazard can be reduced through annual inspections of the fuel lines, cooling system, and electrical wiring. Also, consider the construction, occupancy, protection, and exposure of the storage facility. Causes of collision include use of alcohol, lack of experience, boating in overcrowded areas, or excessive speed.
Inland lakes are the primary area of concern with respect to submerged objects.
Runoff from rainfall or melting snow can bring debris into the lake. Wood can become so waterlogged that it does not float on the surface of the water but slightly below it, making it virtually impossible to see. Man-made lakes, which are abundant in some states, often contain tree stumps, the remnants of trees that were cut down to create the lake. Periods of low water levels pose a threat of hull damage and bodily injury liability claims, especially if the boat strikes a submerged object at high speed. Liability exposures include bodily injury to passengers, third parties in other watercraft or on docks or piers, swimmers, scuba divers, and water skiers.