Boat damage who's responsible?

I think we have a way of assuming if someone has a title or says he is a tradesman the tendency is to except someone at their word and assume competency. I don’t like others running my boat and have had situations where I had no choice. And I have had scratches and scrapes that were not from me. In business when hiring we now have them demonstrate ability. We have learned that a significant percentage of people will tell you they can do something when they can’t. Also I think there are casual captains and professional captains. I think your buddy got 2 of the casual variety.

He definitely needs a new captain, but I think he needs more. Basically a restart and establishing what level of expertise and help he wants and is willing to pay for. If he gets a full time captain, they should be overseeing the work done. He should have a written agreement with the yard and only overages he has approved. While the boat is a pleasure boat, he's been unsuccessful with the business aspect so far. As to the damage to the boat, that's his responsibility. He still has to figure out what damage has been done. Was the stabilizers the only issue? And where did the Captain come up with the mechanic? Sounds like discount captain and discount mechanic. Likely needs to either go with high quality full time or yacht management company.

So many things seem to have been handled not in a businesslike fashion, like the trailer? Who got permission to park it there and did they ask about cost or were they told anything? Where bills exceed estimates by 40%, why? It's acceptable if the job changes and couldn't be known in advance, but not if the work originally described doesn't change.

Captain said something was wrong with boat and that's why he went there. Why was Captain even running the boat? Did he have crew? I'd never allow the captain to run it alone, without me there or other crew. I don't know your friend's background, but you say he's very nice and easy to get along with. Maybe too easy. Is he a businessman who simply forgets his business skills around the boat of from a different profession not as experienced with managing $100k contracts. Now a good captain can help him there.

And, again, the Captain would be gone. No reason to give him more chances. Just admit you did a lousy job of hiring and start over.

The owner is liable. If he owned a company with delivery trucks and a driver scraped the side, the driver isn't responsible. Your friend needs to hire better Captains and screen them better. The scratches on both sides would never happen with 98% of the Captains out there.

First, I'm speaking from zero experience with captains.... I could understand this if the Captain was a full time employee of the owner. But what if the captain is an independent contractor, hired for yacht management, boat movement, occasional trips, etc? And he performs this service for other owners as well. Seems like the Captain is being hired as an independent professional and would be liable for damage he caused. Like if I hire an electrician, he comes in, screws up and burns my boat. I would think the liability would be his?

How can you force a stabilizer fin sideways? I assume if not locked, they would self trail.
They can go sideways running eastern or during docking maneuvers but I don't think forward operation is is a worry not locked centered.

Entire situation sounds bogus to me. I don't believe a word the captain or mechanic said. And I'd look for more damage.

It was a full time captain.

However, others hired also for deliveries and maintenance have you assure them they are covered under your policy. If for a delivery, you will get their name added. Any who have written contracts or agreements will make it clear in them.

If captain was going to be liable, then you could double or triple rates.

As to electrician, that's a bit different but even there you'd have to prove gross negligence. Just negligence would not do it. Plus you'd have to prove that gross negligence was the cause.

I'll take your word for it as you have far more experience than me. In my profession (professional but non-technical) I have to carry professional liability insurance. If I screw up, it's on me, even if it's an "honest mistake". I'm not an attorney so I don't know what the legal dividing line is between negligence and gross negligence. Guessing could/would come down to a court fight. I always assumed that the liability coverage that contractors had to carry, covered damages from mistakes they make that one would reasonably expect a professional to not make.

Ultimately it comes down to contracts and, in their absence, to industry standards and norms. Some are very limited and some are very wide while many are very open to dispute. For instance, movers are limited to $0.60 per pound unless you buy insurance. Even in cases of negligence. Only gross negligence gives you a chance for more.

This is why I encourage everyone to have signed contracts or agreements or terms or at least provide them. I'm spoken to boat owners and to captains about the subject. Why not make it clear.

Professional services are different in that you're not dealing with property. Laws regarding property are much different than professional liability. If an accountant screws up on your tax return and it costs you penalties or interest, they are liable, no question.

If an electrician does something absolutely wrong that causes your home or boat to burn and absent any contract, they would be liable, but proving it could be very difficult. A captain though falls under a different situation when just driving the boat. Oddly, their criminal liability in the event of an accident is easier to charge than civil liability.

In this case, however, it was very straightforward as the captain was a full time employee according to the owner. Now I hope the Captain is already terminated and the owner has someone examining the boat to determine the real damage the captain and his mechanic did and if he needs to make an insurance claim.

It is standard practice to get a General Liability certificate of insurance from all tradesmen and companies working on your boat or property before starting work. All boatyards would require independent tradesmen/contractors to have General Liability insurance to work on their property. It would cover damage to the boat or property caused by them but would have little to do with the cost or terms of work to perform.
We have rental property liability and are required by the insurer to have equal liability insurance from tenants and all tradesmen/companies naming us as "additionally insured." Very important that you are named additionally insured or the claim could be denied. The certificate must be issued by their insurance agent, normally emailed to you. It is easy to not bother with it which could be costly if damage occurs. If the Captain is operating as a yacht management company or independent contractor then he should be have general liability. Sounds like in this case the Captain was an employee.

No it does not work that way. It's a vehicle, SH%T happens and that is why the vehicle is insured. There is no available insurance for independant captains and it's the reason most yacht policies have crew coverage. No different than if you hire someone to drive your car up North. They are not a contractor, they are not doing work on your boat for hire, they are hired by you to run your boat. Do you think Captains have the finances to buy your boat?

None of the story adds up because the owner (OP) is just as unknowledgable about yachting as the captain he hired. WHY don't owners take boating safety courses and become knowledgable about their million(s) dollar asset is beyond me.

Do you have to carry ANY liability coverage as a hired captain? And if you do, what exactly does it cover? Is there any point at which the Captain (again, not talking about an employee but independent) is responsible for anything?

Just to be clear, I'm not talking about weather, miscommunications, difficult docking conditions, equipment failure, etc... The proverbial "S$%T happens". I specifically referenced the more technical term "screw up". I define that as the hired party made a mistake that one could reasonably assume would not be made by a professional. That's akin to negligence in my laymen's perspective "breach of the duty to exercise reasonable care".

Right now it sounds to me like you can hold yourself out as a professional captain with credentials and experience. Owner hires you to move a boat from FL to VA. You're absolved of any financial responsibility if you screw up and run the boat up onto a jetty because you were not paying attention or can't read a chart. Instead, owners coverage, that they pay for, get's hit and their premiums skyrocket or get coverage cancelled. Seems like a great deal for captains.

Typical

Necessary insurance coverage shall be provided by the owner of the vessel in the form of a certificate or underwriters letter naming the Captain and Mate/Engineer/or Deckhand as additionally insured. Coverage shall include public liability and property damage to cover any contingency including but not limited to damage to vessel or injuries to the Captain or crew. ​

And

An insurance policy will be provided by the Owner, with the Captain and Crew included as additionally insured parties to cover possible liabilities including, but not limited to, damages to the vessel and all expenses related to injuries and/or sickness to the Captain and/or Crew. Coverage shall also include public liability and property damage
​

Typically the relationship between owner and captain/crew is much the same as if the captain was an employee of the owner.

Captains may have liability in cases of gross negligence as an employee or anyone else may. That's for the courts. But in the case of circumstances as described in this thread they would not. As to what insurance a captain covers, I'd advise any to have professional liability to any extent possible, but the boat owners insurance takes precedence.

What protects the owner? Doing a good job of hiring and his insurer. Insurance companies know the risk and so they do review resumes carefully and check any other resources they have access to. If an owner fails to provide their information to the insurer, that's a huge mistake. Insurers want to know everyone operating the boat. So essentially the captain does have insurance, just it's through the owner's insurer.

You can't just hold yourself out to be a professional captain, you must provide license and resume and be checked out by insurer. Yes, as an owner, you make poor choices and it will be expensive.

Let's address for a moment why it operates the way it does. Boat is typically worth many times what captain could cover and owner typically has far more net worth than captain. Insuring a $20 million boat typically costs an owner $80k or so. For a captain to get such coverage would double what they would charge and would mean two people were paying for insuring the same boat.

This is one of those odd circumstances in which an independent contractor is treated more like an employee than a contractor. Doesn't sound logical at first, but is a standard practice. Furthermore, it's really to the benefit of the owner. Let's say the owner didn't assume the responsibility and it was the captain and the owner didn't put the captain on his policy. Then captain damages boat in excess of what captain can or will pay. Owner sues, but fails to collect, and owner is left holding the bag as his insurer refuses to pay, saying it's the captain's fault and they didn't insure the captain to operate the boat.

One additional warning I'd give to all boat owners. Please be sure you list everyone who might operate your boat on your policy. Let's say you are going to let your brother use your boat for a weekend with his family while you're in Europe. He has an accident. You may very well not be covered by it.

Last, discuss all this with your attorney and your insurance broker. They may not agree with what is said here, but they'll most certainly agree there is risk to you and they'll hopefully help you find ways to protect yourself. There are so many laws which may be involved from Longshoreman Acts to Admiralty Laws to others. I don't profess to be an expert in all of them. I only know what I've been told to do and the coverage I have as well as some of the standard practices. Add to complications, your use of yards and relationships with them and professional mechanics and electricians and others. You need a maritime attorney knowledgeable in all aspects and you need a marine insurer, not just an insurer selling some boat policies, who can advise you in all your specific needs. For instance, forget scrapes like this to your boat. What if he's gotten those scrapes by running directly into a $40 million yacht and it ended up sinking? Do you have coverage for that? Not likely in your marine policy. I don't in my marine policy. That's why most boat owners also need umbrella policies with high dollar amounts.

In business, we have Risk Management departments or officers and I'm lucky to have access to one. If you don't feel your attorney and insurer do a complete job in that regard, they are available as a professional service. Most don't need a separate service, but risk management is what you need, regardless of who helps you achieve it. Even with the electrician that claims to be bonded and insured, do they really have coverage adequate to protect you? What if they set your boat on fire and two much larger boats burn or even a large part of the marina? If their coverage isn't adequate, just keep in mind who is next in line.

And to captains, you consult with your own attorney and insurer and protect yourself, and to any captains out there working all verbally and without written agreements or contracts, I can only advise you to protect yourself better. Just because it hasn't hurt you to this point, doesn't mean it can't.

Something smells also look at the pictures all the salt and watermarks unkept.

welcome to the new ownership world of 2021 .