P2P insurance

[ryanotown22]

I am wondering for the people that have rented their boats what insurance do you have that covers potential damages from renters? I know boat setter has insurance but it looks like GetMyBoat does not.. what are the options?

 

[Judge]

First..... I would seriously consider setting up an LLC if you want to rent your boat. I would want to protect my personal assets should someone have an accident and seriously injure or kill someone and they in turn try to sue the boat's pilot....... and the boat's owner.

I have a motorhome and my wife has suggested we consider renting it for additional income when we aren't using it. Motorhome's are more problematic than boats so my interest in renting it is low. But if I did, I would set up an LLC and then look into the insurance options.

That being said..... I think you now need two different types of boat insurance:

1. Insurance that covers you during the rental period

2. Insurance outside of the rental period that allows you to rent

Where things get tricky is finding the second type of insurance. This is coverage for the time outside of the rental that allows you to rent. Most traditional insurance policies are written specifically to not allow you to rent. I would also have a large umbrella policy.

 

[HangOutdoors]

First..... I would seriously consider setting up an LLC if you want to rent your boat. I would want to protect my personal assets should someone have an accident and seriously injure or kill someone and they in turn try to sue the boat's pilot....... and the boat's owner.

If negligence can be proven on the owners part, the LLC or S-Corp or whatever may not be enough to insulate you from personal damages and a move on your assets, not to mention additional issues. I have seen where Trusts did not protect personal assets if intentionial negligence was proven.

 

[Ohio]

If negligence can be proven on the owners part, the LLC or S-Corp or whatever may not be enough to insulate you from personal damages and a move on your assets, not to mention additional issues. I have seen where Trusts did not protect personal assets if intentionial negligence was proven.

I have a brother who is an attorney and set up my business LLC years ago. One thing he stressed that if something disastrous happened, it is pretty easy to "pierce the corporate veil".

 

[HangOutdoors]

I have a brother who is an attorney and set up my business LLC years ago. One thing he stressed that if something disastrous happened, it is pretty easy to "pierce the corporate veil".

That is correct. You see a lot of these internet jockey's giving advice all over social media about LLC and S-Corps and Trusts and how they will 100% insulate people from personally liability. Not cool at all.

I am looking for two articles/write ups I read a few years ago, when I bought the boat that my attorney's sent me. I wanted to put the boat in one of my corp's when I bought it. Basically it was a case where someone rented a boat out and the driver killed/ran over someone on the edge of a swimming area. In court the driver of the boat didn't have anything to go after but the boat owner got destroyed financially beyond what the insurance paid. He had an LLC. Another one was about how a boat owner was trailering a boat and it swayed and caused an accident where kids were killed. The boat was in his companies name as well. He was held liable for millions in damages beyond what his insurance paid which was a few hundred grand or so.

It was explained to me like this:

1. Don't think that by putting your personal assets in a Trust you fully protect your assets. If negligence is proven they can and will come for them and get them if they can if you don't have the means or insurance to apy.
2. Putting a boat in an LLC/Corp etc. Does not guarantee that you will not be held personally financially liable.
3. ALWAYS make sure you plenty of insurance and the proper insurance, read all the clauses and understand it. Personally I have an umbrella and I have 2 million. Home, boat, car, Pool (not anymore ).
4. Make sure your boat insurance has the proper riders as well as valid in other states, since states can have their own specific insurance laws and regulations.
5. For gear, electronics, mods, etc. Make sure you have the proper riders and have all of the receipts showing proof of purchase. In my case i have probably 8-10k in gear, rods, electronics, a laptop or two, drone, camera on board at times, etc. If boat goes down or is stolen I want it all paid for. I only pay $30 extra dollars per year for the riders.
6. Make Absolutely sure it is spelled out that you want replacement cost. I want the same boat and year and hours and conditions and mods, etc. etc. During the last couple years it would of added up to 20k more than what I paid for the boat.

 

[OCMD]

Here we go with the non - lawyers giving legal advice.....If things are set up properly (and not via "legal zoom" or other types of internet legal forms companies) you can insulate yourself. That is precisely what these entities are set up to accomplish, I am certain the facts of the various cases explained above are nowhere close to what actually occurred. As for "Piercing the corporate veil?" That is a very high bar to overcome, if everything is nice and tight. Points 1 and 2 (especially 1) above are not accurate and I guarantee the facts of those two cases point to other reasons why/if someone was personally liable. Point 3 is the catch all. Over insure. Always. Don't ask how I know after 36 years in the field.....

 

[HangOutdoors]

Here we go with the non - lawyers giving legal advice.....If things are set up properly (and not via "legal zoom" or other types of internet legal forms companies) you can insulate yourself. That is precisely what these entities are set up to accomplish, I am certain the facts of the various cases explained above are nowhere close to what actually occurred. As for "Piercing the corporate veil?" That is a very high bar to overcome, if everything is nice and tight. Points 1 and 2 (especially 1) above are not accurate and I guarantee the facts of those two cases point to other reasons why/if someone was personally liable. Point 3 is the catch all. Over insure. Always. Don't ask how I know after 36 years in the field.....

The points above are accurate. I have a fleet of attorneys at my disposal both corporate, personal, insurance and liability, whom I seek counsel from on various matters on a continual basis professionally as well as handle all of my personal matters and in addition my trusts, S-Corps and 2 501(c)(3) that I help run. I can't tell you how many times they have "pierced" the corporate veil so to speak for lawsuits, it is almost laughable. Fraud, misrepresentation, negligence, accidental death, and it goes on and on. With respect to boating I only know of the two. Negligence and Intent are the two primary reasons.

you can insulate yourself.

No you cannot, not 100%. The bar is not as high as you purport it to be. I definitely encourage those whom think otherwise to really check with and retain competent legal counsel.

My point is make sure you are Insured properly and then some. Don't rely on catch all phrases like "It Insulates you 100%". At the end of the day you will be the one on the hook. Your attorneys will be handling matters and defending the issues and liability and you could be going broke while they are doing it. AND if it does go bad, some may not recover for quite some time, if ever. It may be the outlier, but it only takes once.

 

[adrianp89]

GMB has an insurance partner you can use. If you are in FL, be sure to obtain your livery permit from FWC. Damages will happen, it's a matter of when, not if. I seem to have 2-3 major claims a year. Make your deposit high enough to cover average damage. Ensure you are following your states guidelines, here in FL FWC/Sheriff/Coast Guard check all the time - on the water and at the ramps. They have a keen eye for identifying bareboat rentals.

 

[OCMD]

If fraud etc is involved in the shielding process, it is a less daunting task to pierce the veil. Clearly, fraud etc will defeat one of the reasons for an LLC or Corp. Negligenct acts are not an avenue which will pierce the corporate veil. Bottom line? Make sure you are over-insured.

 

[HangOutdoors]

Make sure you are over-insured.

+10