So, there is an Admiralty law dating to more than a century ago that allows skippers, in accidents which they cause, to limit, or to escape entirely, payment of damages. Of course, this means their insurers also escape. Apparently, this law can be invoked in any setting on the navigable waters of the United States, including inside marinas. Even if your boat is at rest, tied to the dock, and another vessel allides with it and severely damages your boat, you may not be able to recover any damages from the other skipper. With successful application of Plaintiff-In-Limitation the offending skipper, likely at the behest of his/her insurer, effectively makes you a defendant in a legal action, but where you now must prove in federal court the other guy’s negligence to have a successful claim. The amount that can be received is limited to the offending skipper’s monetary interest in the value of the vessel, post accident. So, if it sinks or burns up, the value may be effectively zero; subsequently then, zero monetary interest. Plainly put—you’d get nothing from that skipper or his insurance provider.
Thus, it would be up to your insurance provider to repair your vessel up to the policy limit. If the vessel is totaled far below replacement value, and the other guy’s provider gets off the hook, you’re screwed.
Thus, it would be up to your insurance provider to repair your vessel up to the policy limit. If the vessel is totaled far below replacement value, and the other guy’s provider gets off the hook, you’re screwed.