Downsides to being uninsured

[Alaskan Sea-Duction]

Insurance is my business, as most know.

I often hear about the cost of coverage on boats, both hull and liability. When I look at the ratio of what a policy costs vs (a) the value of the vessel (for us, it’s under 1% of the insured hull value) and (b) the potential costs of damaging others, I gladly pay my premium. I get no price breaks, and carry higher that average coverages because the additional costs are minimal.

Lawsuits aren’t cheap.

Shhhhhh. I am surprised the States that have water are not requiring boater insurance like cars. Every State requires auto insurance. Its come'n for boaters.

 

[BruceK]

Generally, insurance companies require a claimant to relieve the insured of any additional liability before they finalize a settlement. So to get, say $100,000, they have to let you off the hook for what they think is the balance of the damage.

Wouldn`t any settlement be full and final and require a release of any further claims, known or otherwise?

 

[Juggerknot]

Not up on my Australian law however for me in the U.S. and abroad with a U.S. flagged vessel, I liability proofed by holding the boat in a corporation and, it is the sole asset. If you can do the same there, I highly recommend it as you will be free of any of the personal exposure should something occur.

 

[MYTraveler]

Not up on my Australian law however for me in the U.S. and abroad with a U.S. flagged vessel, I liability proofed by holding the boat in a corporation and, it is the sole asset. If you can do the same there, I highly recommend it as you will be free of any of the personal exposure should something occur.

Except in extraordinarily rare circumstances, that will not work under US law. Let's say you are at the helm of your boat and accidentally hit another boat. Since you were at the helm, you are liable -- directly and personally -- notwithstanding the boat's ownership by a different entity. Just about any circumstance in which negligence caused a loss for which there is liability, it wasn't the corporate owner that was directly negligent (it's liability is vicarious) since corporations don't make decisions, etc., but if you own and control the corporation, and therefore the boat, it was you. About the only realistic circumstance I can think of in which corporate ownership could shield you from liability is if you hired a professional captain with impeccable credentials who is at fault in an accident solely because of his personal negligence. But even then, the corporate owner of the boat will also be liable (vicariously) and you may not be protected by the "corporate veil" if it can be pierced for any number of reasons, not the least of which it is under capitalized for the risks to which it exposes others, particularly if those risks are not insured.

 

[BruceK]

Not up on my Australian law however for me in the U.S. and abroad with a U.S. flagged vessel, I liability proofed by holding the boat in a corporation and, it is the sole asset. If you can do the same there, I highly recommend it as you will be free of any of the personal exposure should something occur.

MY Traveler explains it very well. In Australia no special protection attaches to a boat owned by a corporation, though if the corporation is devoid of assets "you can`t get blood out of a stone" applies. A corporation acts by its servants and agents but they have a several direct liability for their misdeeds. IMO, good insurance cover is essential. And not the .5-1M cover that seems common in USA, here the common/default cover is 10M.

 

[Yachtman]

Shhhhhh. I am surprised the States that have water are not requiring boater insurance like cars. Every State requires auto insurance. Its come'n for boaters.

I’ll raise you one

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