Conflicts with Boatyard Contracts
If you plan on moving your boat to a boatyard for repair work, it’s extremely important to read your shipyard contract thoroughly. Several boatyards have clauses in their contracts that conflict with boat insurance policies. Danielle J. Butler, author of the article When Marine Insurance Policies and Shipyard Contracts Collide, highlights a boatyard’s “Waiver of Subrogation” clause. A main aspect of insurance gives the insurer the right to subrograte for a loss, or cover a loss that is not the boat owner’s fault. If you sign the boatyard’s “Waiver of Subrogation” clause, you are giving away your insurer’s right to recover any damages from the boatyard. Since this is a crucial part to insurance policies your insurer could deny paying a claim for damages done at a boatyard. You can see how serious this situation may become by potentially leaving you solely responsible to pay for any damages (even though it may be the boatyard’s fault)!
Take a few minutes to download and read the article by Danielle J. Butler. She goes into more depth on the issue and makes some key points that will be extremely helpful to you as a boat owner. After reading the article, if you have any questions, give us a call and we will be more than happy to answer them for you! We want to make sure you are properly covered!