Mary,
I can answer this question quite well because I checked into insurance after I bought my boat.

First of all, my boat is covered under racing but I specified that. I believe that you do have to specify racing because if you dont and you injure someone while racing, your insurance does not have to cover it. I have liability on my boat policy because I do not own my own home, I rent. I think I have $100,000, I cant remember the amount for sure.

Second, my insurance does cover if I have a collision with another boat and it is damaged.

I am pretty good friends with our insurance agent asked why it was so low. He stated the reason is that when people look at sailboats, they arent recognized as "high performance". In the small cats, there is no motor and insurance companies classify sailing as sailing, typically the big slow boats so the risk of injury isn't that high. The number of claims each year compared to other insured items is very low, so they have no reason to raise premiums.

As for requiring racers to have insurance, I think its a good idea. I dont feel that would reduce sportsmanship, but maybe help it. You wont have the problems of people not owning up and paying and everyone getting mad at everyone else. Yeah it sucks when you get hit and have to spend the rest of the regatta on the beach, but each time someone hits you, they take a change of splitting that front nose right down the seam.

We dont require insurance, most of our member carry it, but at meetings and such we try and bring it up and encourage our members that dont have it to carry it.

Leah