IMPORTANT NEW ILLINOIS BOAT INSURANCE LAW — EFFECTIVE JANUARY 1, 2027

Illinois has enacted a new mandatory watercraft liability insurance law.

Beginning January 1, 2027, liability insurance will be required when operating:

A motorboat with more than 50 horsepower
A motorboat over 21 feet long
A personal watercraft such as a Jet Ski or WaveRunner

The required liability policy must meet at least the Illinois minimum financial-responsibility limits.

Proof of insurance must be produced when requested by law enforcement or by someone claiming injury or property damage resulting from operation of the watercraft.

Boat Insurance Before January 1, 2027

As of 2026, the new statewide mandatory liability requirement described above is not yet effective.

However, boat insurance may already be required by:

Marina
Lender
Financing company
Lease agreement
Storage facility
Other contract

Even when not legally required, an uninsured boat owner can still be financially responsible for injuries or property damage caused by operation of the boat.

What Does Boat Insurance Cover?

Depending on the policy, Boat insurance may include:

Liability

Injury or property damage caused to others.

Physical Damage

Damage to the insured boat.

Theft

Qualifying theft losses.

Medical Payments

Certain medical expenses arising from a boating accident.

Uninsured / Underinsured Boater Coverage

Coverage for certain injuries involving uninsured or insufficiently insured boaters.

Personal Property

Certain equipment and personal belongings used with the boat.

Trailer Coverage

Physical damage coverage for an insured boat trailer.

Towing / Emergency Assistance

Depending on the policy.

Coverage varies by insurer.

Personal Watercraft — Jet Skis / WaveRunners

Personal watercraft generally require specialized watercraft coverage.

A homeowners policy should not automatically be assumed to provide adequate protection for a personal watercraft.

Beginning January 1, 2027, qualifying personal watercraft will be subject to Illinois' new mandatory liability insurance law.

Illinois Life Jacket Requirements

Illinois law requires at least one properly sized, wearable U.S. Coast Guard-approved personal flotation device for each person aboard qualifying watercraft.

A person operating or riding a personal watercraft must wear an approved PFD.

Children under age 13 generally must wear an approved PFD while on the deck of an underway watercraft or in an open watercraft, subject to statutory exceptions.

Boats 16 feet or longer, other than certain canoes or kayaks, also generally require an approved throwable flotation device.