Sailing School Liability and On-Water Regatta Liability

Sailing schools, yacht clubs and regattas are receiving notices of cancellation from Upper Canada Insurance Group when their policies are coming up for renewal.     I would like to assure the Provincial Sailing Associations and  Sail Canada members that the special insurance programs offered to members continue to exist with the same insurance company  as underwriter.    The only change is they are being managed by a different insurance broker.   If you receive a non-renewal notice please contact us to ensure your existing coverage continues without interruption.  

Sail Canada's insurance programs are  managed by The CG&B Group which is part of Arthur J. Gallagher Canada Limited.  We are a full service brokerage handling everything from personal insurance to large commercial accounts.  The CG&B Group also owns the Skippers' Plan line of insurance that Canadian sailors have trusted for over 60 years.   Sailing is not just a part of our business, it is our passion.  Our reputation on the water speaks for itself  and we are committed to serving Sail Canada members across Canada. 

In addition to sailing schools, yacht clubs, and regatta liability we are also responsible for the Instructor liability program and world-wide coverage for our national team.  If you require assistance with your insurance - including insurance for individual boats - please contact us.

We look forward to hearing from you as we prepare for the 2015 season.

Andrew Robertson
Vice President
Marine Programs
1-800-661-7211

To learn more about our Sail Canada insurance programs visit the Sail Canada insurance website or contact the following  insurance brokers.

Sailing Schools & Yacht Clubs - Joe Marra 647-725-9798

On-Water Regatta Liability - Jeff Beaucaire 647-725-9787  

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.   

 

NEW Liability Insurance for Sailing Schools

In the past it has been difficult and/or expensive for independent sailing schools to find good liability coverage.   Many have operated these businesses under the assumption that they were protected under the the Sail Canada excess liability coverage for instructors.   Certified Instructors and coaches  registered with Sail Canada have coverage for individual but this doesn't necessarily extend to a sailing school or business they operate.

"Sailing schools registered with their Provincial Sailing Association will see significantly lower premiums..."

If an instructor is also the sole proprietor of a sailing school they have a liability exposure as the instructor and also as owner of the business.  To ensure they have proper protection from liability claim both entities need to be covered.  This is why CG&B  developed a new liability policy just for independent sailing schools.

To issue training certificates a sailing school needs to be registered with their PSA's.  These registered businesses are the most professional and best run independent school in Canada.    Our program recognizes this commitment to excellence with significantly reduced premiums.  The premium savings will often be much more than the cost to register with the PSA.

To find out more contact Andrew Robertson at 1-800-661-7211 or email andrew.robertson@cgbgroup.com.

To learn more  about insurance programs offered to sailing professionals and clubs through Sail Canada visit Skippersplan.com and click on the Sail Canada logo.

Regatta Liability Insurance

If your club or organization is hosting a regatta in 2014 Sail Canada offers  affordable on-water regatta liability coverage designed for small clubs having trouble obtaining this coverage.  The annual premium is $1000 and it provides $5 million coverage.  Once in place this coverage  applies to every regatta you host during the year.   It can also be used by Class Associations   hosting their own events.  

This policy protects your organization and its officers, directors, judges, sponsors, volunteers, employees and the race management team while performing their duties on the water for any legal liability to third parties.   This policy also pays for legal expenses to defend associated lawsuits.  

This coverage is available to every Sail Canada member but you must apply to be covered.  To find out more visit.   http://www.skippersplan.com/Regatta_Liability.html

Instructor Liability - Care Custody & Control

The instructor liability policy protects instructors from claims for damage or injury involving third parties.  A standard clause in a liability policy excludes claims for damage to any boat 
that is in the care custody and control (CCC) of the instructor.   But what does that mean for the instructor?   The following scenarios should help clarify application of this clause.

The CCC means there is no coverage for damage to the following boats when used by an instructor or coach:

1. Yacht club boats or boats owned by the  employer.
2. The instructor's personal boat
3. A privately owned boat loaned or rented to the instructor.

In each of these scenarios it is up to the owner to provide insurance for damage to the boat.  However, the instructor liability policy would still provide excess liability coverage for any damage or injury involving  third party boats.

The fourth scenario involves an instructor teaching on a boat that is owned by their student.  The instructor is not deemed to have CCC of the boat in that situation because the owner is on board.    The boat owner's insurance policy would be the first to respond to a claim. The instructor liability policy protects the instructor from any demand for repayment made by an individual or other insurance company.   

TIP:  Before  teaching on a privately owned  boat you should confirm there  is a valid boat insurance policy in effect.    Ask your student to provide  a copy of the declaration page or certificate of insurance and keep a copy with the student's files. 

Instructor Liabilty Policy - Coverage territory

Let's clear up any confusion about the coverage territory that applies to the Sail Canada Instructor Liability policy.

This policy protects instructors and coaches against claims for property damage or injury involving third parties.  To be eligible for this coverage you must be registered with Sail Canada.    The coverage territory is Canada, The United States, their territories and possessions.  This meets the needs of the  majority of  Sail Canada's  instructors and coaches. 

There are a few instructors who teach outside the coverage territory and for these  individuals the policy provides limited worldwide coverage.     This covers insured individuals while they re teaching outside  the coverage territory but only for lawsuits that are initiated in Canada or the US.   An instructor in the BVI's who is sued in the BVI's would not have any coverage under this policy.

There are a few conditions that apply to the limited worldwide coverage that are very important:

1. The instructor/ coach must have their home in the coverage territory
2. They must only be away from the country for a short period
3. The claim or action must be brought in Canada or the United States

Instructors teaching students outside Canada should consider purchasing their own liability insurance with full worldwide coverage.   This would protect them against lawsuits brought anywhere in the world. 

For more information about the Instructor liability policy visit our website www.skippersplan.com/Instructor_Liability.html