Join Date: Feb 2010
Location: Narragansett Bay
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Re: What are typical marina liability insurance requirements
The more sophisticated marinas have a clause in their contract that limits their liability for damage, even if itís caused by their property or people. The worst of the marinas will bury a waiver of subrogation clause, which means they can not be pursued by your insurance company, if the claim they paid you was caused by the marina (say an electrical fire on the dock). Ready for the real kick in the pants? If you waive that subrogation right, unless you have a specific acknowledgement in your insurance policy, saying the insurance company accepts this risk, they donít have to pay that claim.
Liability coverage gets incrementally cheaper, as the coverage increases. The first dollar of coverage is more at risk, for the insurance company, than the last. Small claims are more common than large. Umbrella coverage is often the cheapest way to get to larger coverages. These pay, after your primary policy runs out. Therefore, umbrella policies require a defined minimum coverage on the primary, such as your house, boats, etc. Then itís fairly inexpensive to have secondary (umbrella) coverage to larger amounts that protect oneís total assets.
Understand that while a loss settlement is easier to the extent you have insurance coverage, your personal assets are still exposed to a judgement, if the loss exceeds your coverage and the injured is not willing to just accept the limit if your coverage. I donít let marinas tell me what limits I should have, they are always too low. A plaintiffs attorney sees a boat owner and knows there are more assets.
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In the harsh marine environment, something is always in need of repair. Margaritas fix everything.