Group boat insurance

olddogolddog Posts: 6 Baller
In this age of super-expensive boats, to have a new or fairly new boat a sane way to do it is for 2+ lake/ ski partners to go in together on buying it. Especially if the number of partners gets above two, is there a best way/ structure/ company to insure the boat, with "best" including a cost perspective?

Comments

  • jpwhitjpwhit Posts: 221 Solid Baller
    We have a group that does this at our ski club. But getting the boat insured is a real problem that we haven't been able to completely solve. We're trying to solve it right now by forming a LLC to own and insure the boat. But it looks to be pretty expensive.
  • LeonLLeonL Posts: 2,770 Crazy Baller
    Could you not title the boat in one person's name and draw a stand-alone legal agreement that would compensate any shared owners in case of loss.
    Or, how expensive could it be to set up an LLC?
    @lpskier ?? Any suggestions for these guys?
    Leon Leonard Stillwater Lake KY - SR Driver SR Judge
  • lpskierlpskier Posts: 3,814 ★★★Triple Panda Award Recipient ★★★
    @LeonL If it were me, I’d start out by asking my broker what he would do if it was his problem. An LLC solves the ownership side of the equation, but it can Increase the cost of insurance.
    John Wilkins- Si non pro sanguine quem ludus ne. #iskiconnelly
    Lovell
  • dbutcherdbutcher Posts: 552 Crazy Baller
    Multiple owners usually means multiple users (drivers) and more use of the boat (more hours on the hour meter). This almost has to result in more liability exposure and more physical damage exposure to the insurance carrier. There likely would be less control over who drives the boat. It might even mean that the boat isn't maintained or cared for as well as a single owner boat. It should be no surprise that insurance carriers are NOT jumping up and down to insure multiple owner boats and no surprise if carriers want lots more premium to take on the additional risks. Multiple owner ski boats may make sense for skiers but not necessarily for insurers. Insurers likely are forced to treat them as commercial insurance risks. Hence the higher premiums. Not disclosing multiple owners in order to get lower priced insurance might be considered a misrepresentation. Would that jeopardize coverage in case of an accident/claim? It could. I claim no expertise, but this is food for thought.
  • jpwhitjpwhit Posts: 221 Solid Baller
    Sorry, I didn't mean to imply setting up an LLC itself is expensive. The whole arrangement is looking to be a more expensive way to go. Yes, in the case of an LLC, the insurer considers this a commercial insurance policy.

    At the moment we do have the boat titled in one person's name and that person carries the insurance. We were also able to find an insurer that would allow us to list the other drivers on the policy. But there is still extra risk for the person whose name is on the title. And the person whose name is on policy isn't willing to continue with this arrangement as the current set of boat owners is starting to turn over.

    We did ask a couple of our insurance agents what they would do in this case. And they all said form an LLC and get a commercial insurance policy. Yes, it's a fair amount more expensive, but still less per person that having your own boat insurance policy. And the whole arrangement is way cheaper than the cost of a personally owned boat and insurance.
  • mwfillmoremwfillmore Posts: 71 Baller
    Yeah. LLC is a great idea. Unfortunately I have to run commercial liability insurance for the boat and the property. I think it’s good up to 20 members before they care. Essentially my members are viewed as “employees” and they are required to have a trained drivers rating and current cpr/first aid certainly.

    It’s wayyyy more expensive than a personal boat policy… but required from a liability perspective. (IMO)

    If you’re interested in a quote just dm me and I’ll send you his email/phone number.
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