HO 24 75–SUPPLEMENTAL WATERCRAFT LIABILITY COVERAGE

(March 2022)

COVERAGE

For an additional premium, this form expands Coverage E—Personal Liability and Coverage F—Medical Payments to Others to apply to “bodily injury” or “property damage” losses related to incidents of watercraft ownership.

Related Court Case: “Boat Owner's Liability Insurance Held Primary Over Permissive Operator's Homeowners Insurance”

TYPES OF WATERCRAFT COVERED

This form’s coverage is broader than what is available under an unendorsed HO policy applying to vessels that fall outside of the following classes:

· Watercraft powered by an outboard engine or motor

· Watercraft powered by a combination of outboard engines or motors of more than 25 total horsepower

· Other watercraft, if with inboard or inboard-outdrive engine or motor power

· Sailing vessel that is 26 of more feet in length

The coverage of this endorsement dovetails with the limited coverage provided by a basic (unendorsed) HO policy. For persons with a significant watercraft exposure, it is very important to secure proper coverage (via an endorsement or a separate boat policy) since HO exclusions are specific and enforceable.

Related Court Case: Boat Exclusion Not Affected by Fact That Outboard Motor Could Not Generate 50 HP At Time of Loss

Related Article: ISO Watercraft Policy Analysis

INFORMATION REQUIRED

For outboard engine(s) or motors; inboard or inboard-outdrive watercraft:

· Description of the watercraft

· Horsepower

· Length of watercraft

· Description of the Outboard engine or motor

· Owner of the engine or motor (if not the named insured)

· Period during which the watercraft is used.

For sailing vessels with or without auxiliary power; 26 feet or more in length:

· Description

· Horsepower (only if applicable)

· Length of watercraft

· Period during which the watercraft is used.

The inference being that a loss dispute may arise for incidents that fall significantly outside of the reported period.

Note: Nothing in the form states that operating outside the navigation period will invalidate this coverage.

EXCLUSIONS

Although this endorsement does provide additional watercraft liability protection, some important coverage limitations remain in place.

1. There is no coverage while watercraft is involved in an organized race or similar competition, including practices for such events. As an exception, this particular exclusion doesn’t apply to sailing vessels (with or without auxiliary power) or to predicted log cruises (where participants predict how long it should take to reach a selected designation and then attempt to match or beat the time).

2. No liability protection is granted while the watercraft is rented to others, being used to carry persons or cargo for a fee or while being used for any business purpose.

3. There is no coverage if watercraft cause “bodily injury” to any employee of an “insured” under the following circumstances:

· The “bodily injury” is both job-related and occurs while performing those duties for an “insured”

· The employee’s main duties involve maintenance or use of watercraft.

Example: Sherry and Flanders Longluv have been enjoying their 25^th wedding anniversary "get-away" at their beautiful beach cabin. In the neighboring cabin, a couple of newlyweds are kicking off their relationship. When Sherry and Flanders notice the newlyweds admiring their sailboat, they ask if the young couple have any experience with sailing. After accompanying the couple on a short trip (to test their sailing knowledge) they let the youngsters use the boat for the rest of the day. Around the third hour of boating, the newlyweds are getting to know each other better and, during the distraction, the boat collides with another sailboat. The damage is covered by the HO 24 75.