Additional Insured Endorsement Benefits Yacht Clubs

Most yacht clubs require members to carry liability coverage for damage to third party property and injury.  This is good policy but it creates work for office staff.  If  the club fails to enforce their insurance requirements it may also result in a claim against the club.   At the Sail Canada AGM last week I recommended a simple strategy for club that will result in the following benefits:

1.  Eliminates staff time spent tracking hundreds of  individual insurance renewals
2. Provides the club advance notification that a boat policy is being cancelled
3. Reduces the risk of uninsured boats on club property
4. Provides the club protection under the boat policy if they are named on a lawsuit arising from the operation of a member's boat.

This can all be accomplished by introducing a policy that boat owners must add the yacht club as an additional insured on their boat policy.  The request to add this endorsement must be sent by the person named on the insurance policy.  We do not charge our Sail Canada clients for this endorsement but some companies may charge a small fee for this service.    

 

Once the yacht club is added they receive a copy of policy  in the mail.    If the  premium is not paid the club then receives advance notice of a pending cancellation.  This provides the club with an opportunity to contact their member and remind them of the obligation to be insured at all times the boat is on club property.   The policy and cancellation notice are sent by the insurance company so the members no longer need to send confirmation of coverage and office staff no longer have to chase members to provide proof of insurance.  All the club has to do is check off renewals as they arrive and file the documents.    

 

In some cases boat owners move and forget to notify the insurance company.  If a person has moved and did not receive their renewal this system provides an addition level of protection that coverage won't lapse by accident provided the club has the new mailing address of the member. This is a benefit to all members because it ensures everyone is meeting the requirement to be insured on club property.

 

Finally, consider a situation where a guest is injured when  their foot is crushed between  a boat and the dock.   The injured party's lawyer could name both  the boat owner and the owner of the dock (the club) in a personal injury lawsuit.   If the club was clearly not responsible for the accident and they are named on the boat owner's policy they would be provided a legal defense under the boat policy.  It is important to note this endorsement does not protect the club if they damage a boat due to their own negligence.  The club must therefore maintain their own liability insurance. 

 

If you have any questions wish to receive a sample of the Additional Insured Endorsement we use for our clients send me an email Andrew.robertson@cgbgroup.com or contact me at 1-800-661-7211.