With summer right around the corner, harbors are going to be revving up with activity.

But before boats start pulling out, agents should reach out to their clients and explain what's permitted under their coverage and what could open them up to liabilities — especially during the summer.

Since it's National Safe Boating Week, both agents and clients should contact each other as the weather begins to invite more boats out on the water. PC360 spoke with William Bannon, SVP of Advisory Services for NFP, who offered the following insights on how to minimize risk and maximize coverage.

Know your limits

It's easy to lose track of where you are in open water, but there are geographical limits to keep in mind.

"I think some of the aspects of the insurance and the terms are very important for policyholders to understand. Particularly, policies have navigational limits. It specifies a geographical territory that is outlined in the policy," said Bannon.

Agents should explain that when a client is outside the policy's designated area of coastal navigation, the carrier can decline coverage for a claim if something were to happen. Clients must negotiate with their carrier over territory for their various needs.

In addition to knowing your geographic limits, know your alcohol limits. Many people relax on their boats with friends, and partying is common. But drunk boating is as much of a risk as drunk driving, and can have similar serious consequences.

In 2015 alone, the U.S. Coast Guard counted 4,158 accidents that involved 626 deaths, 2,613 injuries and approximately $42 million dollars of damage to property as a result of recreational boating accidents. Alcohol use is the leading known contributing factor in fatal boating accidents, according to the Coast Guard, and it was listed as the leading factor in 17% of deaths.

Cover everyone on board

With better weather and more boats, clients are prone to more risks. Agents should tell clients to consider uninsured boater coverage.

Many boaters operate without liability coverage because it isn't mandatory. In the case of an accident caused by an operator or another boat without liability insurance, your client could bear the brunt of the financial burden.

Similar to uninsured motorist coverage, uninsured boater coverage protects owners from potential liabilities for bodily injury to a passenger on board the vessel, a bystander, or someone on another boat. Damage to the boat is covered under the property policy.

Understand policy exclusions

The best thing clients can do is be up front with their carrier about their intentions. When you're out on the water, you might want to take part in various water sports, like waterskiing or tubing. However, these activities might not be covered by your policy.

"Beware of the exclusions and discuss them with the underwriters," said Bannon.

Competitive racing, water skiing, scuba diving and parasailing are many summer activities that might be excluded. Even the good samaritans who want to tow a boat in distress may find out they're not covered if someone is injured or the boat under tow is damaged during the "rescue" effort. Removing the exclusions is an option, but it very likely could affect the boat owner's premiums.

Know whether you need a license

Most important: know whether you or anyone you allow to operate your boat needs a license in your state, and in any state that you plan to visit. The American Boating Association has information on licensing requirements in every state as well as information on safe boating training.

As tempting as it might be to let your child take a turn at operating the boat, be aware that most states have age restrictions, similar to the age restrictions on driving motor vehicles. 

And don't overlook the importance of safety training, available through the U.S. Coast Guard Auxiliary. Like safe driver training, boating safety certifications may help lower your insurance premiums. The auxiliary provides classes for all kinds of boats from kayaks and canoes to motor boats and sail boats.

With a few precautions, your clients should be able to enjoy smooth sailing all summer.

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