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From: Phil de l'Etoile (no email)
Date: Wed Nov 01 2006 - 13:00:42 EST
Wow, if you had told me that your marina's contract required you to
carry physical damage coverage on your hull, I would have thought that
you must have misread the contract. Now on top of that I see that they
want you to have hull coverage in the amount of fair market value
(however that number is determined), and a 30 day notice of policy
cancellation.
From an insurance underwriter's viewpoint (not a legal opinion), this
contract seems really over the top. The marina obviously has no
financial interest whatsoever in your hull value, and as an underwriter,
I would not be sending out a notice of cancellation to a certificate
holder. (That's not to say that the slip renter may not have to provide
such notice.) Also, there is no such thing as an "additional insured"
endorsement for your own property (the hull, the car, the house).
My memory's a little vague here, but I'm thinking that I would not be
willing to name the marina's mortgagees as additional insureds. That
would be the responsibility of the marina's Marina Keeper's Liability
Policy's underwriter.
The subject of waiver of subrogation is a complicated one in terms of
cost and the willingness of the underwriter to provide such coverage.
Although I'm aware that the subject brings up a red flag, I don't recall
the details and the parameters for providing such an endorsement.
Suffice it to say that it's a lot more difficult to get than an
innocuous additional insured endorsement.
All in all this seems like a pretty lopsided contract, and while I
realize that everyone wants to transfer liability as much as possible,
this seems to potentially place the marina's negligence on the shoulders
of the marina's tenants.
It would interesting to hear a legal opinion about this contract.
Phil de l'Etoile
David Parks wrote:
> It was suggested that I may want to post the piece of the contract that has
> caused my fuss. Since many may be speaking of what they know ... and
> contracts differ. I doubt it may change any of the responses so far but at
> least it removes any confusion.
>
> 1.Insurance: OWNER/S shall during the entire term of this LICENSE AGREEMENT,
> keep the boat and its contents covered by a policy of all risks hull
> insurance in an amount equal to the fair market value of the Boat and its
> contents. OWNER/S shall also keep the boat covered at all times by a policy
> of property and indemnity (P&I or Public Liability) insurance with a minimum
> limit of $300,000 per incident. OWNER/S shall name "MARINA X" , OWNER/S, and
> any mortgagee of MARINA X as "additional insured" in all policies of hull
> and P&I insurance, and all policies shall contain a waiver of subrogation
> against MARINA X. OWNER/S shall deposit with MARINA X certificates or
> policies for such insurance at or prior to the commencement of their terms
> and thereafter within (30) days prior to the expiration or any such
> policies. Continuation of this agreement despite any failure by the OWNER/S
> to deposit such certificates or policies with MARINA X, and despite the
> failure of any such certificates or policies to comply with the requirements
> stated in this paragraph above shall not be considered a waiver of the
> requirements of this paragraph by MARINA X. Such policies shall no be
> canceled without at least (30) days prior notice to each insured name
> therein. OWNER/S shall not permit any use of the Facility which make
> voidable any insurance on the facility or the contents of said property or
> which shall be contrary to any law or regulation established by the Fire
> Insurance Rating Association or any similar body succeeding its powers.
>
> 3 This is what got my attention.
> OWNER/S shall name "MARINA X" , OWNER/S, and any mortgagee of MARINA X as
> "additional insured" in all policies of "HULL" and "P&I insurance", and all
> policies shall contain a waiver of subrogation against MARINA X.
>
>
> I thank everyone for their comments.
> David Parks
> Red Skies at Night
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