If you need marine insurance, you will soon hear the term "navigation territory." The concept of the navigation territory is used by insurance underwriters to assign limits to the risk they assume. Consequently, the insured party must operate the insured property, the boat, within the limits of the territory defined. Understanding the navigation territory which is covered and complying with its limits will assure more satisfactory resolution of claims. Failure to comply with the limits of the navigation territory puts you at risk of a rejection of your claim for reimbursement after a loss.

The navigation territory defines where the owner may or may not take the insured boat. Navigation territory may be extremely limited or very broad within the following categories:

1. Port
a. Port Risk Ashore - the insured vessel is not in the water. For the duration of coverage with this navigation territory, the vessel may not be placed in the water. If the owner decides that he wants or needs to put the boat in the water, he must contact the underwriter and negotiate coverage for a different territory.
b. Port Risk Afloat - the insured vessel is in the water but it may not be navigated anywhere. If the owner decides to move the vessel, he must contact the underwriter in order to determine if coverage is affected. Whether the boat is towed away for maintenance or moved under its own power to a new mooring, it is essential to contact the underwriter before the move to work out any coverage issues. In general it can be assumed that moving the boat out of danger such as fire or collision, but prompt communication with the underwriter is always advisable.

2. Inland and coastal navigation
This navigation territory generally extends no more than 5 miles from land. In the event of a situation where the outmost island of a group is more than 5 miles from the continental coast, it would likely be acceptable to cruise the islands as long as no single transit from island to island puts the boat more than 5 miles from land. However, it would always be advisable to discuss such a situation with the underwriter before embarking.

3. Navigation not more than a specified distance offshore
This navigation territory is negotiated specifically for the type of boat covered. A bass boat with an outboard motor would have a different limit than a 50-foot cruising sailboat. The limit for a fully-equipped cruising sailboat with an experienced crew might be as much

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