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Warner Norcross + Judd LLP is a corporate law firm with over 230 attorneys serving clients in nine offices throughout Michigan. Among the largest law firms in Michigan, Warner works in virtually all areas of business law.

Michigan Law Firm - Warner Norcross + Judd LLP

It’s the time of year every boat owner looks forward to — getting their prized possession in the water and prepping it for the season ahead. But, aside from the cleaning and equipment checks, it is also important to regularly check your coverage to make sure your vessel, and your other assets, are properly protected against the risks that come along with the fun on the open water.

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Typically, insurance for your vessel operates very much like your auto insurance. It includes property coverage for damage or loss to the craft itself, and liability coverage for third-party claims asserted arising out of ownership and operation.

<strong>How Much Insurance Do I Need?</strong>

As with most insurance, boat insurance typically has specified limits of maximum amounts that the insurer will pay in the event of damage or loss to the craft and in the event of a liability claim. Any costs, expenses or liability that exceed those specified limits would not be covered.

As to property coverage for the boat, if an owner wants to minimize the risk of going out of pocket for any repairs/replacement of the vessel, it is important to review your insurance limits regularly, and seek expert help as needed, to ensure they strike the balance of having sufficient insurance to cover loss to the watercraft while also avoiding significantly over insuring the potential loss and paying premiums for coverage you would never need, even in the event of a total loss. In addition, it is quite likely there could be a contractual requirement to maintain sufficient insurance on the vessel either through a lender or marina.

On the liability side, to the extent that liability for a third-party claim for bodily injury, death or property damage from a boating accident exceeds the applicable limit of liability on the insurance policy, personal assets could be at risk to satisfy any judgment. Because of this potential for personal exposure, it is important to review your limits regularly to feel comfortable that you carry enough coverage to protect your assets according to your own individual risk tolerance. This is especially critical given that boating inherently carries the risk of serious accidents, which may result in significant personal injury or even death. In the current legal and financial climate, such incidents can expose individuals or organizations to substantial monetary liability. This coverage can be maintained in a combination of primary and excess/umbrella insurance policies that together would provide sufficient protection. But it is essential not to assume that any personal excess or umbrella coverage you might already have would automatically apply to boating-related liability. Again, look at the policy language to ensure you have the coverage you expect.

This type of insurance also has some unique concerns that may require specific attention:

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<strong>Steps to Ensure Nothing’s Missed</strong>

Insurance policies are complicated contractual documents, so if you have any questions or concerns about the nature and extent of your watercraft coverage, the experienced insurance attorneys at Warner Norcross + Judd LLP can quickly and efficiently run through your policies and either put your mind at ease or identify action items to make sure you have the coverage you want and expect. After that, it’s smooth sailing.

Legacy Matters

Insurance

Private Client and Family Office

Partner

Jason L. Byrne

Senior Counsel

Karen L. Kayes

Batten Down the Hatches — Appropriate Insurance Protection for Your Vessel

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Batten Down the Hatches — Appropriate Insurance Protection for Your Vessel

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