From now on we will address the most frequently asked questions – and misunderstandings – about yacht insurance. In the first episode we clarify with the support of Dirk Hilcken from the leading boat insurance broker Pantaenius Yachtversicherungen the basic meaning and purpose of a liability and hull policy for the ship.
Quite a few owners consider themselves to be solid to good skippers who can safely control their yacht at all times. And if you do get a scratch on your boat, you either do the repair yourself or pay for it out of your own pocket. If someone else drives into your boat, they have to pay for the damage. Insurance is therefore unnecessary, isn’t it?
Dirk Hilcken explains:
Caution! In water sports, the principle of liability generally applies. This means that skippers are only liable for damage that they have culpably caused. For example, through intent or negligence.
This regulation is in contrast to the so-called strict liability, as applied in road traffic. There, vehicle owners are generally liable for damage that they cause to third parties with their vehicle, even if they are not at fault. Although many people derive their thoughts about insurance coverage from everyday knowledge about cars, it should be noted that this principle of strict liability is the exception.
It is not always possible to hold the person responsible for the damage accountable
Storm damage can be used as a good example to illustrate the principle of liability. If, for example, a properly moored boat breaks loose during an unexpectedly violent storm and damages one or more neighboring boats, the owner is usually not liable for the resulting damage. Without culpable behavior, any boat liability insurance cannot cover the damage. Injured parties are left with their own costs – unless they have comprehensive insurance themselves. More on that later.
More about boat insurance:
Of course, other scenarios are also conceivable. For example, if a boat in the harbor loses its maneuverability due to a technical defect that was not its fault and rams another boat. Or when a fire breaks out on the ship in the boat hall and spreads from one to the next – as unfortunately happens again and again in the winter months. The same applies here: if there is no culpable behavior, there is no cover from boat liability insurance.
The following applies: no culpable behavior, no compensation
It is in the nature of things that in such cases the parties concerned often know each other. Whether as a jetty neighbor or club member. The anger over the supposedly unwilling insurance company is correspondingly great. Even worse if an injured party files a lawsuit against the alleged perpetrator. In such cases, your own boat liability insurance includes so-called passive legal protection, which covers the costs of any necessary legal advice. This protects you from unjustified claims for damages. However, it is doubtful whether it is suitable for getting a former friendship back on track.
Added to this is the lack of a general insurance requirement for boats in Germany. Even if the person responsible acted culpably, it cannot be generally assumed that they have boat liability insurance. Of course, many clubs and some marinas require such insurance. However, it can never be said with certainty how exactly this requirement will be checked.
Not every owner has liability insurance. Damage caused through negligence could mean financial ruin
Too much theory? If you ignore all of the cases described and assume that the person responsible firstly acted negligently and secondly has boat liability insurance, a final and sometimes decisive problem still arises: in contrast to high-quality comprehensive insurance with a fixed rate and the principle “No deductions new for old” regulates boat liability insurance only based on current value. In the worst case scenario, an equivalent boat cannot be purchased, or repairs cannot be carried out as the owner would like.
Without your own boat insurance, there is always the risk that damage caused by third parties will not be compensated or will only be inadequately compensated. And having your own boat liability insurance should be a given per se.
By the way: Even when choosing the right liability insurance, the insurance conditions can vary greatly. Of course, there are more exciting things to read about boats, but owners should definitely check some details. For example, whether boat liability insurance fully covers claims of the crew and guests, including among themselves. Furthermore, the shared use of water sports equipment and rental property damage should be insured and skipper liability insurance should be included. Furthermore, not every liability insurance policy covers claims from public law.
Not all insurance is the same. Pay attention to the small print
After the once-in-a-century storm surge on the Baltic Sea, for example, the city of Kiel issued an official order stating that all ships must be salvaged. In such a case – a claim from a third party – one could assume that liability insurance would at least cover the rescue costs. However, in the specific situation, some owners have found that their insurance company refuses to cover the costs because their conditions only mention claims under private law. This is a small but important difference.
You should also ensure that you have sufficient coverage when it comes to liability. For example, in Italian waters, coverage of 6,450,000 euros is required for personal injury and 1,300,000 euros for property damage. In total, the liability coverage should amount to at least 7.75 million euros.
The expert:
Foto: PantaeniusDirk Hilcken, Vertriebskoordinator Pantaenius Yachtversicherungen
Latest news on boat insurance:
2024-02-07 10:20:20
#Insurance #Boat #liability #boat #comprehensive #insurance #good