Working inside a boat up on blocks is essentially the same as one in the water, if it is grounded through its three-wire power cord. If the vessel is not grounded and a fault develops in the hot lead, workers outside the boat on wet ground or contacting metal ladders or stands are in danger.

Extension cords, especially the household two-prong type, increase the risk; wearing rubber boots and rubber gloves can reduce the risk somewhat. Using an AC on the exterior of a floating boat is courting disaster. If a power drill or sander gets splashed or falls overboard, seawater will conduct current from the hot wire to the case, making the tool hot. If the grounding wire is not effective, any path to the sea via wet decks or a metal conductor makes the worker part of the circuit. Divers and swimmers in the water are susceptible to electrical shock, especially if there is a direct short such as would occur if a live power cord drops into the water.

Even a relatively low-voltage fault can establish an electrical field around the boat, which could cause a current flow through a swimmer’s body causing fibrillation. Current leakage into the water can also paralyze muscles and cause drowning with no visible evidence of electrocution.