From my experience, my insurance covered the damage when my boat fell over. If there were discussions between the yard (and its insurance company) and my insurance company, I was not privy to them. My understanding is that typically your own insurance covers the damage first and then the two insurance companies battle it out. When I accepted the settlement, I had to subrogate the claim to the insurance company so they had to right to pursue reimbursement.
The lawsuit is because the owners are pissed off and will lose the use of the boat for quite some time while the repairs are being made. It may also be part of a negotiating strategy to move the repair process along. These boats are often chartered, so there will be income lost while the boat is repaired. That would increase the cost. Charter fees for similar boats run up to $52K per week (yep, over my budget!).
https://www.yachtcharterfleet.com/luxury-charter-yacht-27474/vesper.htm
The lawsuit is because the owners are pissed off and will lose the use of the boat for quite some time while the repairs are being made. It may also be part of a negotiating strategy to move the repair process along. These boats are often chartered, so there will be income lost while the boat is repaired. That would increase the cost. Charter fees for similar boats run up to $52K per week (yep, over my budget!).
https://www.yachtcharterfleet.com/luxury-charter-yacht-27474/vesper.htm