Larger vessels are usually written on a yacht policy, which borrows the vocabulary of ocean marine insurance. The CDI outline lists the coverage it normally provides: hull, boat trailers, and protection and indemnity (P&I).

Hull coverage, also called hull and machinery, applies to the insured vessel itself: its hull, engines and equipment. Boat trailers can also be covered; check the declarations, because some insurers limit or leave out trailer coverage.

Protection and indemnity is the liability part of a yacht policy. It covers the owner's maritime liability for injury or damage to others arising from operating the vessel. The name tempts people to think it protects the yacht, but damage to the yacht is the hull coverage's job. Example: a yacht strikes a marina's fuel pier. Hull pays to repair the yacht; P&I pays the marina for the pier.

One standard limit: P&I does not include liability that is covered under a workers' compensation policy, so injuries to crew that workers' compensation covers fall outside it.