Vessel insurance protects you financially in case your ship is damaged or destroyed. Here are some kinds of ships that this type of insurance covers.
Sailboats
Sailboats have a lot of parts to them that can be expensive to repair or replace. Sails in particular are expensive, as are the various pieces of hardware that lines interact with. Wooden sailboats are more fragile than fiberglass ones and can be extremely expensive to repair due to the craftsmanship involved.
Tugboats
Tugboats are highly durable by nature, but they are not exempt from damage. Tugboats can become damaged if the force against them is large enough. More commonly, tugboat engines can malfunction or wear out.
Barges
Barges endure a high degree of wear and tear from loading and unloading shipping containers onto and off of them. Cranes can topple unexpectedly and cause significant damage to the deck or other components.
Yachts
Yachts are extremely expensive to repair by design. Even a minor ding can cost exorbitant sums of money. The interior of a yacht can contain luxurious leather upholstery, chandeliers, high-end appliances, and designer bathrooms. Just one component can cost as much as a whole vessel!
These are a few types of vessels that vessel insurance can cover. It is important to have financial protection in case your ship is damaged.