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Personal Liability Insurance

Discussion in 'Licensing & Education' started by clivesail, Jul 7, 2021.

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  1. clivesail

    clivesail New Member

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    I have USCG/MMC with Aux Sail endorsement for vessels<50 GRT.
    Thinking of helping out a friend who wants to charter his 40' sailboat for 'sunset cruises' on a Great Lakes Port.
    What kind of Insurance does one need and other 'contractual issues' should one consider, before embarking on such a scheme? Many Thanks!
  2. clivesail

    clivesail New Member

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    Hmmm....97 views and No replies?....no lawyers in this Forum?
  3. d_meister

    d_meister Senior Member

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    I shopped for insurance when I first became licensed. The broker, a large, well known yacht insurance brokerage in the area as well as in the industry, told me that there was no specific insurance available as an operator of a vessel as the vessel insurance covers an authorized operator. Speak with your friends agent and obtain documentation naming you as "also insured". That will also permit you to gracefully be sure there is insurance in effect, and also appropriate for the intended activity. That's standard protoc0l for boatyards and marinas when a vendor operates on their property. Seems similar, to me, but let the experts weigh in.
    In my case, the wide range of values of the variety of vessels operated as a licensed delivery skipper makes it impossible to determine the policy limits as well as the premium value. I did have insurance for my work as electronics installer and vessel maintenance, which also permitted incidental operation of customer vessels.
    Many things have changed in the insurance industry, since then, but at least you have a reply!
    clivesail likes this.
  4. Pascal

    Pascal Senior Member

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    thank god we don’t have any sharks here ...
    clivesail likes this.
  5. Capt J

    Capt J Senior Member

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    Insurance on the vessel that covers charters and the captains that run the vessel.
  6. Capt Ralph

    Capt Ralph Senior Member

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    We had company insurance but never brought it up during discussions for delivery & sea trials.
    I just ensured I had a letter from the owner and hopefully their boats insurance company, stating I was authorized to operate the boat.

    I recall this was a YF topic up before but long ago. Do some searches on this site about this. recall some tight neck ties were talking then.
  7. petrel

    petrel Member

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    As others have said, have the owner arrange for the additional coverage on the vessel policy he holds. His agent can modify his coverage accordingly.

    Years ago our captain wanted to run a few charters. The increase in premium for that was nominal. However, I bumped up the liability considerably, which was a bit more expensive.
    clivesail likes this.
  8. Norseman

    Norseman Senior Member

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    Using your boat…?:eek:
  9. petrel

    petrel Member

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    Yes
  10. BuoyCall

    BuoyCall Guest

    Just saw this thread, I made yacht ownership insurance my niche and have learned a lot about this industry the last year. Figure if i am going to buy/live on a yacht I mind as well learn all I can to help myself and others navigate this expensive area. Insurance company has to "ok" the owner to operate the vessel or have an "approved" captain aboard.
    clivesail likes this.
  11. Capt Fred

    Capt Fred Senior Member

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    I learned the same thing as d_meister, on contracts for moving vessels, I had a clause that states that the owner holds me harmless from all risk, something to that language.
    clivesail likes this.
  12. BuoyCall

    BuoyCall Guest

    are you carrying any kind of liability on yourself at least? not so much on the vessel being moved but if you yourself injure someone, you should have at least a small liability policy.
    bayoubud likes this.
  13. bayoubud

    bayoubud Senior Member

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    This would be my concern when hiring a part-time captain. If he shows up with a mate to help with delivery then the rules change or if someone gets seriously injured everyone gets sued. I don't see how a captain could avoid being sued if there is an accident with injuries.
    My original point about temorary uninsured captains causing property damage or injury. Better to hire a temporary captain as an insured contractor not an employee.
  14. Capt Ralph

    Capt Ralph Senior Member

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    Not all this again.

    That capt and mate may sue the boat and owner also.
    Again, when in doubt, ask your insurance company.

    My service company was insured. While my self or employees were on board preforming repairs or maintenance.
    While operating a customers boat, lines off of the dock, with permission of the owner, the boats policy covered all.
  15. bayoubud

    bayoubud Senior Member

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    CR, don't take it personally. Talking about captains operating as uninsured independent contractors You were doing it right as an insured company/contractor.
  16. Capt J

    Capt J Senior Member

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    There is no insurance that exists to cover indepedent Captains. YOUR insurance should have crew coverage in it. Which would cover any crew that operates your vessel. Some people with yachts cheap out and cancel the crew coverage (and it's a miniscule amount of the total) just like some people don't have theft insurance on their vehicles.
  17. bayoubud

    bayoubud Senior Member

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    Assuming we are talking about freelancers and independent contractors/captains for temporary work, it is all in the details of your agreement in writing and wether you will be sending a W-2 or 1099 for their services. Yes, you could hire an approved captain to operate your boat on a temporary basis and the owners insurance covering most damages to the boat. You would need to clarify what is covered especially liability for injury. We might be surprised what isn't covered!
    Just saying in today's world best to contract temporary work services with liscensed and insured contractors with a certificate of insurance issued to you.
    The problem starts if the captain does not operate the boat correctly and there is large damage or injury.
  18. Capt Fred

    Capt Fred Senior Member

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    To answer Bouycall, no I do not carry liability insurance. I looked into that insurance and chose not to get it. I felt comfortable with the vessel's insurance coverage. I'm probably more risk tolerant than most
  19. BuoyCall

    BuoyCall Guest

    Like D_Meister said above, go with adding them as "additional insureds" to your policy....