Third-Party Liability

There is no legal requirement to carry third-party liability cover to operate a jet ski in New Zealand. However, the potential cost of a liability claim is significant — a collision that injures a swimmer or destroys another vessel could result in a damages claim of hundreds of thousands of dollars or more. For most riders, standalone liability cover provides an important financial safety net at a modest annual cost.

Most specialist marine policies include third-party liability limits of $5 million to $10 million or more. Whether this is sufficient depends on your use — riding in busy waterways near expensive private jetties or near commercial vessels increases the theoretical exposure. A specialist broker can help you assess an appropriate liability limit based on where and how you ride. In most cases, the standard limits offered in a comprehensive policy are adequate for recreational use.

This varies between policies. Some marine liability products include passenger injury cover as standard; others treat it as an exclusion or an optional add-on. If you regularly carry passengers — a common scenario on two- and three-seater sit-down jet skis — it is worth specifically asking your broker whether passenger injury liability is included in the policy wording being recommended.

Most liability policies include legal defence costs as part of the overall cover. This means that if a third party alleges you caused damage or injury and disputes arise, the insurer will typically fund the cost of legal representation up to the policy limit. The exact terms vary, so confirm with your broker before proceeding with a policy if legal defence costs are important to you.

If a third party is injured through your use of the craft — even if it was a genuine accident — they may be entitled to seek compensation for medical costs, loss of income, and other losses. In New Zealand, ACC covers some personal injury costs, but property damage and some other claims can still be pursued through civil action. Third-party liability insurance covers your legal exposure in these scenarios, meeting valid claims on your behalf up to the policy limit.