Insurance; Marina wants "additional insured"

[Jorgeinseal]

Two different marinas (Huntington Beach, Long Beach) are insisting my policy add them as "additional insured" yet my carrier insists on "additional interest" and I'm in the middle with no slip for my journey south beginning Feb 5/6. Any suggestions?

 

[MYTraveler]

IME, additional insured is common and appropriate. I have no idea what additional interest means in the context of a liability policy. In the context of property coverage, it may mean that you can't receive an insurance payment for damage to your vessel without the marina's release. I suspect there is some confusion with your carrier.

 

[slowgoesit]

From a quick internet search, present on several sites the same. I suspect your insurance carrier is confused . . . Might want to ask to speak to a supervisor, or someone who knows the insurance business instead of whomever you are speaking to at your insurance company.

Analysis: Additional insureds and additional interests are often confused. An 'additional insured' is someone who receives coverage similar to the named insured and can receive liability coverage. An 'additional interest' has a financial interest in the property.Jul 15, 2020

So my non-lawyer take on this is that if your Uncle Bob cosigned on the loan, he is an "additional interest" since he has a financial interest in the property, but the Marina should be an "additional insured" so that they can receive liability coverage.

This advice is worth exactly what you paid for it! I am not an attorney, I have always had an honest job.

 

[psneeld]

It has become common, and I believe out insurance expert agreed it is not a big deal to the boat owner.

It prevents you from getting a policy to get a slip, then canceling the next day after arrival.

Additional insured are notified of cancelation or changes as far as I know.

 

[slowgoesit]

It has become common, and I believe out insurance expert agreed it is not a big deal to the boat owner.

It prevents you from getting a policy to get a slip, then canceling the next day after arrival.

Additional insured are notified of cancelation or changes as far as I know.

Unfortunately, it pretty much takes away any recourse of suing the marina if they do something negligent, as you would be in affect suing yourself . . .

 

[psneeld]

Unfortunately, it pretty much takes away any recourse of suing the marina if they do something negligent, as you would be in affect suing yourself . . .

Usually the slip agreement does that anyhow by putting liability on your insurance first....

Although, and I can't confirm it, but if you can prove gross negligence on their part...it goes on them.

Say a guest of yours trips and falls...its on you. If they trip and fall on a loose board that you have notified them of multiple times...it may be on them.

Would be nice not to have to guess though and just how much or little liability one should carry.

This may help some...

https://www.passagemaker.com/channe...f Insurance With Additional,Uncle Bob to your

 

[BandB]

"Additional Interest" is actually the correct term although many use the two terms interchangeably.

An additional interest has a vested “interest” in the item or property being insured but has no actual ownership of it. This is most often an entity like a bank or other lender who wants to be kept up to date on how the item is being protected.

An additional insured party often holds partial ownership of what’s being insured. It is important that anyone with partial ownership of the insured interest is listed on your policy. This person may be added to your policy as an endorsement.

Both renters and condo policies correctly use the term "additional interest."

Now, why do landlords or marinas seek additional insured? Because that actually would allow them to file the claim directly rather than seek coverage under your liability policy.

Here is a good article on this subject.

https://www.thezebra.com/auto-insur...lds partial ownership of what's being insured.

 

[MYTraveler]

Now, why do landlords or marinas seek additional insured? Because that actually would allow them to file the claim directly rather than seek coverage under your liability policy.

My experience is a little different. By being named as an additional insured on our tenants' liability policies, we routinely tender liability claims directly to our tenants' insurers, and their carriers provide defense just as if we had purchased the policy (either way, often with a reservation of rights).

 

[BandB]

My experience is a little different. By being named as an additional insured on our tenants' liability policies, we routinely tender liability claims directly to our tenants' insurers, and their carriers provide defense just as if we had purchased the policy (either way, often with a reservation of rights).

People in auto wrecks also tender claims directly to the other party's insurer. So nothing keeps it from being done. As an insured though you can technically make a claim on the tenant's contents as well. You have no reason to but it's among your rights. As an additional interest, you could not do that.

It's really not a major issue in most cases but additional interest is still the more appropriate term.

 

[MYTraveler]

People in auto wrecks also tender claims directly to the other party's insurer. So nothing keeps it from being done. As an insured though you can technically make a claim on the tenant's contents as well.

Marinas (and landlords, etc.) require additional insured coverage to protect against liability to third parties, not to insure against damage to their own property. When one claims against another driver's carrier, it is for the purpose of recovering damage to their car (and it would be very unusual for one vehicle owner to be named as an additional insured on another driver's policy). Conversely, the benefit of being named as an additional insured on a tenant's policy is that, in the event of a third party claim, the tenant's insurer is your insurer. If there is a third party claim, you tender it to the tenant's insurer.

 

[Alaskan Sea-Duction]

Another insurance scam IMO. Crusty had to go through something like this while heading south and staying in CA marinas, even for 1 night.

 

[ksanders]

Another insurance scam IMO. Crusty had to go through something like this while heading south and staying in CA marinas, even for 1 night.

Seems like kinda a pain in the butt to do if one is just a transient cruiser, spending a night or three in a harbor then moving on.

 

[mvweebles]

Another insurance scam IMO. Crusty had to go through something like this while heading south and staying in CA marinas, even for 1 night.

Am I reading this correctly, that a marina wanted to be listed as additional insured for a 1 night transient stay? Seems like an unusual amount of admin overhead. God forbid they host a cruise-in of a dozen. boats.

 

[psneeld]

My broker said no sweat, just call and they would fax/email them an endorsement.

But maybe its because, at least in my experience, the marina doesn't ask for it unless signing more than a month lease. If hundreds of boaters asked for endorsements daily,, it might become an issue.

However, more and more are asking for a proof of insurance even for 1 night ((easy to provide).

 

[rslifkin]

Asking to be listed for a short transient stay is definitely uncommon. Most either want proof of insurance or nothing at all. Being listed as an additional interest is common for a seasonal or permanent slip though (and my marina is listed on my insurance).

 

[MYTraveler]

I got an endorsement to my policy naming as an additional insured "any municipal or commercial marina at which the insured vessel is slipped", and have found that many marinas will accept that. The biggest problem is that there is no notice of cancelation, but my broker is always readily available to send out a current certificate, while the endorsement must come from the insurer.

 

[guy with a boat]

Another insurance scam IMO. Crusty had to go through something like this while heading south and staying in CA marinas, even for 1 night.

It’s a normal part of many businesses, and there is usually no charge to provide the certificate, so I’m not sure where the scam would be. Inconvenient, maybe, but good scams involve extra charges so this doesn’t qualify.

In my business, we receive and provide these all the time as part of doing business. We have dozens, if not hundreds of additional insured certs active at any one time and have to have good systems to keep track of them. It doesn’t matter until it does, and then you are happy to took the trouble to get it right.

 

[guy with a boat]

The marinas that request/require additional insured coverage for a short stay are almost always primarily month-to-month marinas. They are set up for monthly slip holders and their requirements reflect that. Transient boats are a tiny part of their business and its almost more trouble than its worth to them, so they impose the same requirements on visitors that they would for monthly. Sometimes they are just as happy if you don’t stop there since it saves them lots of paperwork and only brings in rent for a night or two.
Any marina owned by a municipality is often saddled with extra requirements and less flexibility as a result.
All of these comments apply to the SoCal marinas mentioned. Slip space is tight and the marinas don’t tend to be nearly as flexible and eager as other areas with more competition for transient business. It’s often the case that you have to take what you can get and live with the requirements because there isn’t much availability at all.

 

[Crusty Chief]

I think we only had to provide additional insured doc once while running down the west coast of Ca. Almost all of them wanted copies of CG doc, insurance, drivers license and a valid Credit card before they would quote a price or even availability. And that carried on into MX. There it gets a bit more lengthy requirements, like the additional MX Liability insurance, Tip, Passports, and so on. We just scanned all of it on to a thumbdrive and sent them everything they wanted. Then when you check in they still want the originals to make copies of. MX loves there paperwork.
Now were leaving MX and headed for El Salvador and then onto Costa Rica, more requirements, like Covid tests within 72 hours, additional medical insurance in the event of catching Covid, port entry fees, cruising permits.......you get the picture.

Cheers

 

[Shrew]

Another insurance scam IMO.

-----------------------------
scam /skam/

noun: a dishonest scheme; a fraud.

verb: To swindle.
------------------------------

Could you elaborate on how this is a 'scam'?

 

[Alaskan Sea-Duction]

-----------------------------
scam /skam/

noun: a dishonest scheme; a fraud.

verb: To swindle.
------------------------------

Could you elaborate on how this is a 'scam'?

Up front, I am an anti-insurance person, meaning the government should not be dictating its citizens to carry insurance. The insurance companies interests are to swindle those who need/want insurance. The insurance companies are in the driver's seat, not the customer.

The insurance companies raise rates for no reason at all other than to get richer. Look at what happened when States required auto insurance. Insurance companies made a killing in profits. Why are west coast folks paying higher rates due hurricanes damage on the east coast? I understand I have the right to not carry insurance for my recreational vessel. If you have the money to self cover then good for you. I carry insurance to protect me from idiots. That doesn't mean I have to like it.

It is my understanding insurance companies are currently lobbing States to require insurance for recreational boats.

Your intent is to correct my English and I will admit language was not my thing in school. All said and done you understand. So go for it.

 

[Shrew]

Your intent is to correct my English and I will admit language was not my thing in school. All said and done you understand. So go for it.

I am not correcting your English. The scope of the issue is around a marina requiring it be listed as either an "Additional Insured" or "Additional Interest". Your reply is to comment that it is an insurance scam.

My question was very simple in that I was curious how it was an insurance scam.

 

[Alaskan Sea-Duction]

I am not correcting your English. The scope of the issue is around a marina requiring it be listed as either an "Additional Insured" or "Additional Interest". Your reply is to comment that it is an insurance scam.

My question was very simple in that I was curious how it was an insurance scam.

Well then, Thank You for pulling me back from thread drift....

 

[slowgoesit]

Perhaps ASD's use of "Scam" wasn't correct, but it has always rubbed me wrong when a business requires me to name THEM as a named insured on MY insurance policy, but the WILL NOT name ME as a named insured on THEIR insurance policy. For instance, when attending an Art Show as Artist displaying/selling our Metal Sculptures, I must name the SHOW as a named insured on MY Insurance Policy to protect THEM, but they won't name ME on THEIR insurance policy to protect ME.

Seems like if it is a legitimate request, than it should work both ways. Of course if it is NOT a legitimate request, and just something they require us to do in order for us to attend a show, or in this case moor at their marina, and their attitude is "Take it or leave it", than although perfectly LEGAL, IMHO, it is pretty sleazy . . ., or some people may even call it a SCAM!

 

[BandB]

Perhaps ASD's use of "Scam" wasn't correct, but it has always rubbed me wrong when a business requires me to name THEM as a named insured on MY insurance policy, but the WILL NOT name ME as a named insured on THEIR insurance policy. For instance, when attending an Art Show as Artist displaying/selling our Metal Sculptures, I must name the SHOW as a named insured on MY Insurance Policy to protect THEM, but they won't name ME on THEIR insurance policy to protect ME.

Seems like if it is a legitimate request, than it should work both ways. Of course if it is NOT a legitimate request, and just something they require us to do in order for us to attend a show, or in this case moor at their marina, and their attitude is "Take it or leave it", than although perfectly LEGAL, IMHO, it is pretty sleazy . . ., or some people may even call it a SCAM!

It's their game and they set the rules. You don't like them, you don't get to play. Business owners can set any rules they want. Now, if enough people don't like them, they lose business. Most businesses write contracts in their favor, not yours. You have the right to agree or refuse.

 

[slowgoesit]

It's their game and they set the rules. You don't like them, you don't get to play. Business owners can set any rules they want. Now, if enough people don't like them, they lose business. Most businesses write contracts in their favor, not yours. You have the right to agree or refuse.

Totally agree! But really beside the point. I was responding to whether or not marina's requiring being named as an additional insured as a condition of moorage was a Scam as ASD stated.

 

[BandB]

Totally agree! But really beside the point. I was responding to whether or not marina's requiring being named as an additional insured as a condition of moorage was a Scam as ASD stated.

In my opinion, no scam involved.

 

[Shrew]

This is a decent explanation:

https://en.wikipedia.org/wiki/Additional_insured

Hopefully Pau Hana can pipe in. My take is, let's say your boat snaps a line and, as a result of being unrestrained, causes damage to the marina property. They are able to submit a claim directly and get paid directly.

My other take is, let's say they need to move the boat for any reason, it further covers them should some un expected damage occur. My marina indicates in the contract, they are not liable for damage to the boat while being hauled or moved in the yard. IF the boat falls over in the yard, they have some recourse.

I'd love to be corrected or have someone in the insurance field clarify further.

 

[keith c]

For my on info, what if any thing does a boat liability insurer charge for adding a marina to my policy as an additional insured ?

 

[BandB]

For my on info, what if any thing does a boat liability insurer charge for adding a marina to my policy as an additional insured ?

Nothing