Marina requires rider on insurance?

[prajna101]

My marina requires us to have the marina listed on a rider on our insurance as an insured party. I have never seen this before in previous marinas. It doesn't bother me too much to do, but do wonder if it takes away some of their liability. If the marina damages my boat, does this mean its all on my insurance? Is this normal? I have been in a lot of marinas and this is the first time I have seen this.

[Jammer]

Originally Posted by prajna101

My marina requires us to have the marina listed on a rider on our insurance as an insured party. I have never seen this before in previous marinas. It doesn't bother me too much to do, but do wonder if it takes away some of their liability.

If the marina damages my boat, does this mean its all on my insurance?

Yes, it means, among other things, that if the marina damages or destroys your boat, your insurance pays for it, their insurance doesn't, and that affects your future cost of and access to insurance.


It also means that the marina is authorized to initiate a claim. Let's look at how this works. Maybe you scratch the paint on the boat in the next slip. The guy who owns that boat is a perfectionist and a complete martinet and wants the side of the boat repainted on your nickel. You say, "no way in hell" and you don't open a claim with your insurance. At this point, ordinarily, the only recourse the perfectionist guy has is to lawyer up and actually file suit for damages (which isn't worth it) -- or, to make a claim on his own insurance. But if the marina is listed as an additional insured party, the marina can decide to open a claim on your insurance without your consent, your insurance pays out because they don't want to fight a $4000 claim in court, the marina gets paid to repaint the side of the boat, and your insurance rates go up next time you renew.

Is this normal? I have been in a lot of marinas and this is the first time I have seen this.

It is becoming more common. I've had that kind of agreement with the marinas I've been using for several years now.

[DoubleD]

My marina required that they be added to my insurance policy as an "Additional Insured". In my Progressive policy they are named as "Additional Interest" on my Verification of Insurance form, which the marina accepted. I assume its just terminology. I didn't think twice about it as in my industry we require the contractors to do the same. I've never delved into what difference does it make.


DD

[wholybee]

Originally Posted by prajna101

My marina requires us to have the marina listed on a rider on our insurance as an insured party. I have never seen this before in previous marinas. It doesn't bother me too much to do, but do wonder if it takes away some of their liability. If the marina damages my boat, does this mean its all on my insurance? Is this normal? I have been in a lot of marinas and this is the first time I have seen this.

It's very normal. Does it take away some of their liability? That is probably a question for a lawyer. But in general, I think no. They would still be liable for *their* own mistake. You can't weasel out of liability for damage you cause, even though many contracts say such. But a lawyer would need to look at the specific case.

But importantly for them, if YOUR boat sinks and does environmental damage, or catches fire and burns the boats next to you, they know your insurance will cover them if someone comes after them for it.

Your insurance policy probably already has this, and all you need to do is tell them the name of the marina for them to fill in the boxes and they will fax the marina the paperwork. It should take less than 5 minutes.

[Marathon1150]

Originally Posted by prajna101

Is this normal? I have been in a lot of marinas and this is the first time I have seen this.

We currently have long term slips in two marinas - one in Canada and one in Mexico. Both require this clause in our insurance policy.

[Montanan]

It is a norm.

FYI:

https://www.investopedia.com/terms/a/additional-insured.asp#What%20Is%20Additional%20Insured?

Understanding Additional Insured
Liability insurance provides insurance for the party named in the policy for protection against insurance claims due to injury or damage to property or individuals. Liability insurance policies provide coverage for the costs of monetary payments or payouts that the insured party might be responsible for if it's determined the insured party is legally liable.

An additional insured status in a liability policy extends the coverage beyond the named insured to include other individuals or groups that were not named in the original policy. Additional insured typically applies where the primary insured must provide coverage to additional parties for new risks that arise out of their connection to the named insured's conduct or operations.

These new individuals or groups are added to the policy through an amendment called an endorsement. The amendment may name the additional insured within the policy. However, other policies may use a blanket additional insured endorsement, which doesn't require the additional insured party to be named in the amendment. Instead, a general description of the type of groups or individuals that are to be extended coverage is added to the named insured's policy.

Benefits of Additional Insured
An additional insured amendment is helpful since it protects the individuals or parties that have been extended coverage under the named insured's policy. If a claim is filed or a lawsuit materializes, the additional insured would be covered.

Also, it's beneficial for a party to be covered as an additional insured since it reduces the loss history of the additional insured, which can ultimately lead to lower premiums. Instead, any losses from claims post against the policies of primary insured, and their premiums would likely increase. It is typical of an insurance company to require that their client must have tenants include the client as an additional insured as a covenant of the client's liability policy coverage.

Costs of Additional Insured
The cost of adding an additional insured is typically low, compared to the costs of the premium. Insurance company underwriting departments often consider the additional risk associated with additional insureds as marginal. Additional insurance coverage and endorsements are the subjects of frequent disagreements, misunderstandings, and litigation. The disagreements are often about whether the additional insurance coverage should cover "independent negligence" by the additional insured, or if it should only cover liabilities caused by the named insured's acts. Therein lies the devil in the details of the specific endorsement. One needs to read the policy to fully evaluate what the scope and limits of coverage.

[MicHughV]

pretty common these days....most marina's require it.

[YachtBoyRMK]

Originally Posted by wholybee

and they will fax the marina the paperwork. It should take less than 5 minutes.

I had to recheck the date/year on thread. Who uses a fax? Is a time machine involved?

[Uncle Bob]

Originally Posted by YachtBoyRMK

I had to recheck the date/year on thread. Who uses a fax? Is a time machine involved?

I asked the same question of a medical practice that I use and the response was that a fax is the safest way to send a document electronically, no concerns about hacking etc.

[Chotu]

Originally Posted by Uncle Bob

I asked the same question of a medical practice that I use and the response was that a fax is the safest way to send a document electronically, no concerns about hacking etc.

Which is kind of interesting because it would be very easy to hack a fax.

All you would have to do is tap the landline it’s on and then just record the sound it makes. Then you have all the time in the world to apply the correct fax protocol.

[GreenWave]

Now we are off topic but I agree with Chotu. Faxes go somewhere not to someone. Even without electronically intercepting them, the output paper can be easily swiped.