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Own yacht in LLC or Personal

Discussion in 'General Yachting Discussion' started by Danvilletim, Aug 15, 2020.

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  1. Danvilletim, Aug 15, 2020
    #1
    Danvilletim

    Danvilletim Senior Member

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    I’ve always put boats in an LLC to in theory limit liability. However I didn’t realize or think through that our umbrella policy ($5m) would not help with any liability with the boat. Maybe if a lawsuit pierced the veil of an LLC, then the umbrella would be a benefit.

    Any thoughts or opinions? LLC or Personal.
  2. Norseman, Aug 15, 2020
    #2
    Norseman

    Norseman Senior Member

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    LLC and commercial registration, and my Umbrella don’t cover the boat either, got a 6 figure boat liability insurance instead.
  3. Danvilletim, Aug 15, 2020
    #3
    Danvilletim

    Danvilletim Senior Member

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    If boats in your name umbrella will cover if min boat coverage is also there. For example we would need a min of $500k and the umbrella would cover up to $5m
  4. olderboater, Aug 16, 2020
    #4
    olderboater

    olderboater Senior Member

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    You likely need a commercial umbrella policy in that case.
  5. rtrafford, Aug 17, 2020
    #5
    rtrafford

    rtrafford Senior Member

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    If the boat is in an LLC, there should be a boat policy in the name of that LLC to cover the boat and liability, etc. An umbrella policy in your name could cover your own liability outside of the LLC policy if somehow the LLC was pierced allowing a crossover to personal. But if you're the manager of the LLC and your operating agreement defines your role clearly, I'm not really clear on how that gets pierced.