Join Date: Feb 2010
Location: Narragansett Bay
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Re: What are typical marina liability insurance requirements
I wonder how many people maintain coverage solely at the mandatory level, which has absolutely nothing to do with one's own risk management assessment. If one really can self-insure, I understand the simple compliance of choosing the minimum. If you understand the potential for loss, where it's your assets, not the insurance limit, on the line, it's highly unlikely that any state imposed minimum is the right number.
Said differently, just because you buy $500k, $1m or whatever amount of liability coverage, doesn't mean your exposure is limited to that level. It only means that's all they'll pay and your assets back up any additional loss. Also keep in mind the cost to defend the lawsuit you're involved in, if you caused a loss. It would be good to know the insurance company's requirement to defend and whether that comes out of your coverage limits. Some policies require you to defend yourself and they'll pay to the policy limit, if you lose. Not good. Others will defend you, but only until the lawyers have eaten up the coverage level, then there is nothing left to pay, if you lose. Too often, the inexpensive policies have less favorable terms like these, even though the coverage looks the same.
There are a ton of details beyond just knowing the coverage requirements. Get a good pro to help.
p.s. I'm not an insurance guy, but I've purchased quite a bit of insurance for all sorts of personal and commercial ventures.
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In the harsh marine environment, something is always in need of repair. Margaritas fix everything.
Last edited by Minnewaska; 04-11-2019 at 05:44 AM.