Boat and Watercraft Claims
Boat and watercraft insurance policies are much like automobile policies in their structure and the coverage offered or provided. The typical boat policy contains Comprehensive and Collision coverage (with selected deducible) to insure the boat, motor and trailer, Bodily Injury Liability coverage to protect the insured(s) against negligence claims for personal injury, Uninsured Boater Coverage, to pay for injuries to the insured(s) caused by an uninsured watercraft. Boat and watercraft policies also have additional coverages, either included, or added by endorsement for Medical Payments Coverage (there is no PIP for boats), Towing and Personal Effects Coverage. The amount of any boat policy coverage can be selected as needed, as can territory or geographic area in which the policy will apply. Agreed Value Coverage may also be purchased, which means should the boat be destroyed or declared a total loss, the agreed value, less the deductible will be paid to the insured.
Remember also, where an insured boat, jet ski or watercraft has a trailer, operation, use and maintenance of that trailer may subject the owner or operator to legal liability. Where there is Med Pay coverage on the boat or jet ski policy, anyone other than an insured injured during the operation, use or maintenance of the trailer may have a claim for benefits.
Boat or watercraft insurance policies are not standardized, as are most automobile policies, and a careful reading of the policy terms, conditions and exclusions is necessary to determine whether coverage applies to a given claim.
Additionally, the law applicable to boating and watercraft claims is in some ways very different than that applicable to automobile or other land based accident claims. The most distinguishing feature of insurance claims involving boats or watercraft, versus those involving motor vehicles is where and when the claims may be brought. Unlike automobile or motor vehicle claims, negligence claims involving the operation of “vessels” (which includes pleasure craft and jet skis) on “navigable” waters, which generally includes a body of water used or capable of use in interstate or foreign water commerce, are subject to certain provisions of Federal law, know generally as “Admiralty” law. This may include an inland lake, depending on the character of its use. Federal Statute 28 U.S.C.A. § 1333 provides that the Federal district courts shall have original jurisdiction, exclusive of the courts of the States, of:
(1) Any civil case of admiralty or maritime jurisdiction, saving to suitors in all cases all other remedies to which they are otherwise entitled.
(2) Any prize brought into the United States and all proceedings for the condemnation of property taken as prize.
Claims involving watercraft or boating injuries may be brought in State or Federal court, generally at the choice of the injured party.
For injury claims occurring on the water, a lawsuit may be filed in Florida State court, as the State courts have “concurrent jurisdiction” with Federal courts over these claims. (State courts have concurrent jurisdiction with federal courts as to in personum claims based on maritime torts. Carnival Corp. v. Carlisle (Fla. 2007)) This is because Code Section 1333, above, contains a “savings to suitors” provision which precludes automatic preemption of state remedies by Federal admiralty law. Therefore, a lawsuit claiming damages for an injury occurring on navigable waters is a maritime case, subject to application of federal admiralty law. (See, Still v. Dixon (Fla. 2nd DCA 1976) (The application of maritime law is generally argued as an affirmative defense in a State Court filed action.)
The timing of a lawsuit based on a “maritime claim” is different than that in a land based Florida negligence action, as the three year limitations period applies to any action involving a maritime claim. (See, Beckman v. Rick’s Watercraft Rentals (Fla. 3rd DCA 1998), holding, “The decided cases clearly establish that an accident like this one, which causes a serious injury to an occupant of a seagoing craft—even if no other vessel is involved and the defendants' alleged negligence occurs on land—fully qualifies (as a maritime claim). Claims for injuries on non-navigable waters in Florida must be filed within four years of the event or injury (per F.S. 95.11(3)(a).
Suits involving ticketed passengers may be further limited in filing time, as generally cruise ship tickets (which are binding contracts) limit lawsuit filing to one year from the time of the accident or injury*. (Other waivers of legal rights and damage claims may appear in passenger tickets, which should be read carefully.)
* The normal limitation period for damages or injuries for a maritime tort is three years. 46 U.S.C. § 763a. Section 183b of Title 46 permits contractual shortening of the time period to one year, but by its terms applies to “the manager, agent, master or owner of any sea-going vessel ... transporting passengers....” The passage contract ticket did in fact shorten the time for suit to one year: “No suit for any cause against Carrier in connection with this contract or the voyage shall be maintainable unless commenced within one 1 [sic] year after termination of the voyage.” The ticket effectively shortened the limitations period. See Hallman v. Carnival Cruise Lines, Inc., 459 So.2d 378 (Fla. 3d DCA 1984). See also Moody v. Scandinavian World Cruises, Ltd., Inc., 506 So.2d 1102 (Fla. 3d DCA 1987)
Claims for injuries occurring on navigable waters to passengers or operators of watercraft are premised on the alleged negligence of another party, whether that person or corporation is land based or also on the water. The standard of care under maritime law is “reasonable care”, which is similar to the test used to determine whether a party acted negligently. Claims of or on behalf of a ship’s crew members or any “seaman” are subject to the Jones Act or the Death on the High Seas Act (DOHSA), the Federal laws enacted to protect such workers. Jones Act cases are brought in federal court. The Jones Act and DOHSA are not exclusive remedies, and other federal laws may apply, depending on the nature of the seaman’s employment at the time of injury or death. (The Longshore and Harbor Workers’ Compensation Act generally is another federal act, which applies to those contacting a vessel while not a part of the crew or aiding in its navigation.)
Other issues arise in determining who is responsible for an injured person’s damages as the result of a boating, jet ski or other watercraft accident. Was the boat chartered or rented to the operator? Was the charter a “bareboat” charter or a “voyage” or “time charter”? If a bareboat charter, the owner may be relieved of any liability for the boat or watercraft’s operation or condition or unseaworthiness. A boat owner furnishing his/her boat or jet ski for a time specific or a certain trip, is not shielded from liability for negligent acts.
Finally, while purchasing a boat, jet ski or watercraft insurance policy is a good idea, you may already have some coverage under your homeowners insurance policy. Homeowners policies differ by insurer, however are similar as to the extent of coverage for the ownership, maintenance or use of a boat or “watercraft” as defined in the policy. Of course, you should consult with an insurance professional (your agent or attorney) if you have questions. Generally, a homeowners policy will provided the following coverage for boats or watercraft:
- Damage to an owned boat, jet ski or other watercraft is generally is subject to a “Special Limit of Liability” under a homeowners policy of $1,500, including the trailer.
- The Medical Payments coverage of a homeowners policy, covering the medical expenses of someone injured by an insured, or on the insured premises, may provide coverage for injuries arising out of the ownership, maintenance or use of a “watercraft”, as specifically defined by the policy. Usually, only small boats, with less than a 25 horsepower motor would be covered, although a sailboat rented by an insured that is less than 26 feet in length might be covered. Also, if a boat, jet ski or watercraft is in storage, it is covered under the Medical Payments coverage of the typical homeowners policy.
- Windstorm or hail damage to a boat, jet ski or watercraft is generally covered if the vessel is in a “fully enclosed building” when damaged.
- Theft of personal property from a boat located on the insured premises may be covered, but not if the boat or watercraft is “off premises” at the time of loss.
- Liability coverage for injuries caused by an insured are covered if the watercraft is stored at the time of the incident, or if the incident arises from the operation or use of an owned sailing vessel less than 26 feet in length. There is no limitation on liability coverage when the inured rents a sailing vessel of any size. Watercraft, powered by an inboard engine or “water jet pump” of less than 50 horsepower, or more than 50 horsepower if not owned or rented to an insured, is covered for liability coverage. For outboard powered boats, if the power is 25 horsepower or less and owned by an insured, it is covered for bodily injury liability, however if the engine or motor is not owned by an insured, there is liability coverage if the motor or engine was acquired during the policy period, or if acquired before the policy period if such ownership is reported to the insurer within 45 days of the policy inception.
