Amount of Liability Insurance

Tedd

Tedd

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Jul 25, 2013
772
TES 246 Versus Bowser, BC
I'm in the process of buying a 26-foot trailerable sailboat that I will keep at home. I'm in Canada but I will sail in U.S. waters from time to time (Pacific northwest). I'm undecided as to how much liability coverage I should have from my boat insurer.

I've been reading various threads on boat insurance and have learned a lot, but one question I haven't seen addressed directly is how much liability coverage is appropriate. I know this is very much an "it depends" question, so I guess I'm looking for "what it depends on" answers as much as actual dollar figures.
 
D

dlochner

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Jan 11, 2014
12,700
Sabre 362 113 Fair Haven, NY
Marinas often require $300K to $500K for boats in their marinas. Otherwise it depends on your circumstances and insurance cost. Some use an umbrella policy in addition which covers home, auto, boat, and other circumstances.
 
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Jacktar

Jacktar

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Sep 14, 2014
1,278
Catalina 22 Pensacola, Florida
Check with boatus aka geico for the recommended minimum for just sailing around. I dont bother with what the marina thinks I should have, but most have around 100 k for drunken dockwalkers who fall off yur boat then sue you.
 
David in Sandusky

David in Sandusky

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Nov 8, 2007
1,577
Hunter 27_75-84 Sandusky Harbor Marina, Ohio
My idea is an umbrella liability policy for all coverages that protects (is roughly equal to) our total assets. Not perfect, but it has some logic.
 
Tedd

Tedd

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Jul 25, 2013
772
TES 246 Versus Bowser, BC
Thanks for the great responses, everyone. As it's a trailerable boat we won't be in marinas very often, but we surely will from time to time, so it's good to have that insight.

The broker quoted two million as their standard, which seems reasonable to me. (That's two million Canadian dollars, or about 1.5 million U.S. dollars at the going rate.)
 
C

Calif. Ted

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Jun 8, 2004
2,925
Catalina 320 Dana Point
I'm at one of the MOST restrictive marinas in S. California and they require one million USD for boats over 32' and $500,000 for under 32'.
 
D

dlochner

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Jan 11, 2014
12,700
Sabre 362 113 Fair Haven, NY
Jacktar said:
Check with boatus aka geico for the recommended minimum for just sailing around. I dont bother with what the marina thinks I should have, but most have around 100 k for drunken dockwalkers who fall off yur boat then sue you.
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You may think different when you try to go to a marina and they don't allow you in with less than their chosen amount.
 
Tally Ho

Tally Ho

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Jan 7, 2011
5,442
Oday 322 East Chicago, IN
My municipal marina requires slip-holders to maintain $300k liability insurance, and name the marina as additional insured.

They tried to raise the limit to $1M, but most slip-holders complained. The changed their mind.

Greg
 
jssailem

jssailem

SBO Weather and Forecasting Forum Jim & John
Oct 22, 2014
22,746
CAL 35 Cruiser #21 moored EVERETT WA
Tedd
The 500,000 number (per occurrence) is used at the Port of Everett.

All persons who berth or store a vessel in the Marina, even on a temporary basis, shall maintain insurance in force and good standing on the vessel. The insurance shall be written as Protection and Indemnity (P&I) insurance on a comprehensive coverage form with limits of at least $500,000 per occurrence in coverage encompassing general liability, legal liability and pollution liability, and as otherwise required by law. As a condition of using Port of Everett facilities, the user shall have documentation available to Port Staff, upon request and provide annually which documents that the required insurance is in force. The Port Staff shall have the right but not the obligation to request such evidence of insurance. Failure to have such documentation may be grounds for termination of any Moorage, vessel storage, storage lockers, or other Port privileges.​

Travel around the Sound confirms the use of similar limits. Port Townsend has switched to online reservations and payment , requiring completion of there data statement which includes an affirmation of insurance in order to secure a berth. Now if they would just protect the reserved berth for the boater who paid for it.

What interests me is the Port of Everett’s clause absolving themselves of any liability within the jurisdiction of the port even if the port was negligent and contributing to the event. Boy that sounds unfair.
 
D

dlochner

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Jan 11, 2014
12,700
Sabre 362 113 Fair Haven, NY
jssailem said:
What interests me is the Port of Everett’s clause absolving themselves of any liability within the jurisdiction of the port even if the port was negligent and contributing to the event. Boy that sounds unfair.
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Wonder how that clause would stand up in a civil trial.
 
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Hello Below

Hello Below

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May 7, 2012
1,522
Hunter e33 Maple Bay, BC
The P & I that came standard with my Navis policy was $10M. Most marina’s on this side of the border require $1M. However other than at my permanent moorage marina and most yacht clubs, I have never been ask for proof of insurance. That is except for Port Townsend Boat Haven and they required $300,000, IIRC.
 
WayneH

WayneH

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Jan 22, 2008
1,087
Tartan 37 287 Pensacola, FL
Admiralty law is strange. I was sued for 15K by my marina for damages I supposedly caused during a storm. According to my lawyers, my liability was up to the value of my boat which at the time was totaled or $0.

My old company would not issue me a liability only policy so that I could get my boat repaired. Since then, they send me emails wanting me back. My new insurance company offered $500K and fuel cleanup for less than my old company. Not enough incentive to return to the old company.

I am not naming names but you should shop around for the best policy and it might not be some company offering towing services.
 
Tedd

Tedd

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Jul 25, 2013
772
TES 246 Versus Bowser, BC
dlochner said:
Wonder how that clause would stand up in a civil trial.
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I expect it would be much the same as waivers, which a court might or might not enforce depending on the circumstances and the jurisdiction. In Canada, for example, you basically can't waive your legal rights no matter what you sign. A personal waiver carries almost no weight in court and it's only real purpose is so that a defendant can prove that the person was made aware that there were risks. I expect that a clause such as @jssailem described would be treated much the same. If the port was just a teensy bit negligent, then the court might say, "Well, you were warned." But it wouldn't absolve the port of gross negligence. Something like that.
 
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Hello Below

Hello Below

.
May 7, 2012
1,522
Hunter e33 Maple Bay, BC
Tedd said:
I'm in Canada but I will sail in U.S. waters from time to time (Pacific northwest).
Click to expand
While you are considering liability insurance for your boat, also consider medical insurance for yourself and crew. Unlike in your home province, a broken leg in Puget Sound will cost you more than the $80 ambulance ride to the hospital.
 
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