Watercraft insurance is an essential coverage for boat and personal watercraft owners in Mexico. The primary reason to have watercraft insurance in Mexico is liability. Mexico's navigation law requires vessels to carry civil-liability insurance (Ley de Navegación y Comercio Marítimos, art. 176). If you are involved in an accident on the water, you could be held liable for damages or injuries to other people or property. Baja Bound's watercraft policy, which SmartGringo links to, is liability cover: it pays for damage or injury you cause to others (Baja Bound watercraft page); the same page says legal assistance "is a call away. Available 24/7." That can be especially important if you are involved in a serious accident that results in significant damage or injuries.
What that policy does not do is cover your own vessel. Physical damage and theft of your own boat are not covered by Baja Bound's watercraft policy, and passenger medical payments are excluded. If you want cover for damage to the boat or personal watercraft itself, whether from a collision, weather, theft or vandalism, for personal belongings on board, for towing and salvage, or for storm damage, you need a policy that includes those items. Read the wording before you buy.
For a boat on a trailer, Baja Bound's FAQ says: "While being towed, you may cover your boat for liability-only or full coverage. Once the boat has been disconnected from the trailer, the coverage ceases." The watercraft insurance policy is what covers it on the water.
In conclusion, liability is the reason to carry watercraft insurance in Mexico, and the wording decides what else is covered. Having the right coverage in place can provide peace of mind for boat and personal watercraft owners. If you are a boat or personal watercraft owner in Mexico, it is important to make sure that you have the right insurance coverage in place to protect yourself and your vessel.
Keeping her in a Mexican marina? Quote your vessel with Baja Bound.