Do you need insurance if you want to purchase a small fishing boat for sale?

In most states, a person does not legally need to get insurance in order to purchase a small fishing boat for sale. However, if payment for the boat is being financed, the finance company may require that an insurance policy be purchased, listing the company as the loss payee.

Boat insurance is purchased to cover the costs of damage caused due to factors such as hurricanes, floods, theft, collision, fires and sinking. Various types of boat insurance policies are available to meet the needs of different types of boat owners. The level of coverage depends on which type of policy is purchased.