Under the Water Leisure Safety Act, a powered water-leisure craft (jet ski, motorboat, yacht, etc.) is compulsory for both individual owners and water-leisure operators. Like motor insurance, it is a registration-prerequisite policy — local-government registration and a number plate are issued only after taking out insurance.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
Under the Water Leisure Safety Act, a powered water-leisure craft (jet ski, motorboat, yacht, etc.) is compulsory for both individual owners and water-leisure operators. Like motor insurance, it is a registration-prerequisite policy — local-government registration and a number plate are issued only after taking out insurance.
Jet-ski and banana-boat rental.
Marina and harbour business.
Wakeboard and surf instruction.
Diving and fishing boats.
| Water Leisure Safety Act Art. 49 | Compulsory insurance for powered water-leisure craft |
|---|---|
| Enforcement Decree Art. 30 | Insurance an individual owner must take out within one month of acquisition |
| Registration prerequisite | Local-government registration and number plate issued only after insurance |
| Group use | Blanket cover for group tourists |
|---|---|
| Instruction accidents | Instructor and user covered together |
| Craft rental | Towing accident of the rented craft |
| Policy period | 1 year or a season (3–6 months) |
|---|---|
| Insurer | KB |
| Limit | Statutory minimum + α |
| Turnaround | 1–2 weeks |
| Legal basis | Water Leisure Safety Act Art. 49 · Enforcement Decree Art. 30 |
| Channel | Individual consultation with our broker (010-5755-6465) |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; the main exclusions are summarised on this page. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Risk patterns that come up often in the water-leisure business — a five-scenario self-check
During the rental and operation of a powered craft, users face fall, capsizing and drowning risk.
A yacht/motorboat operation also bears user and third-party accident risk.
During instruction, both instructor and user are exposed to accident risk.
Marine-tourism activity carries water-accident and facility/vessel-collision risk.
Group use can produce a larger scale of harm in an accident.
Water leisure insurance is insurance for an operator under the Water Leisure Safety Act to compensate accidents caused to users or third parties during the operation, rental or instruction of a powered water-leisure craft. Its starting point resembles ordinary commercial general liability (CGL), but it differs in that underwriting and limits are designed for "water"-specific accidents — falls, capsizing, drowning, injury to a towed user, collision with coastal facilities or another vessel. But cover has clear premises: operating under the influence of alcohol or drugs, operating outside a designated safe zone, and an accident while in breach of the life-jacket duty are within the exclusions. Compliance with safe-operation requirements is the basis of cover.
Source: (General industry example)
The wording and structure points decision-makers most often overlook
An accident during operation under the influence of alcohol or drugs, or outside a designated safe zone, is excluded. Cover is maintained only by keeping the safe-operation requirements.
Cover can be limited for an accident while in breach of the life-jacket duty. Managing the wearing of life-saving equipment is the premise.
Whether you operate directly, rent out craft or teach changes the risk and cover. Check that the cover and endorsements match your business form.
The questions decision-makers ask most when considering water leisure insurance
It is insurance, under the Water Leisure Safety Act, for an operator to compensate accidents caused to users or third parties during the operation, rental or instruction of a powered water-leisure craft. It covers water accidents such as falls, capsizing, drowning and collision.
The starting point is similar, but water leisure insurance has its underwriting and limits designed for water-specific accidents — falls, capsizing, drowning.
It covers users' fall, capsizing and drowning accidents, injury to passengers and towed users, liability for collision with coastal facilities or other vessels, rescue and emergency medical costs, and bodily/property loss.
Exclusions include operating under the influence of alcohol or drugs, leaving a designated safe zone, an accident while in breach of the life-jacket duty, and an accident during a competition (without an endorsement).
Accidents in the course of instruction such as wakeboarding and surfing can cover both the instructor and the user under an instruction-accident endorsement. Confirm it against the form of business.
The insurer assesses it on the type and number of craft held, the user scale, the form of business (operation, rental, instruction), the limit and past incident history. The exact premium and acceptance terms are confirmed after underwriting by insurers such as AIG, Chubb, DB, KB, Meritz and Hyundai.
