Who Pays if Your Boat is Damaged in the Marina During Repairs?
What happens if your boat is in the marina for repairs and the repair company causes more damage? Who is responsible for covering the costs—your boat insurance or the marina's insurance?
Here’s what you need to know:
Marina liability insurance protects against damages in the workshop
When you take your boat to a marina for repairs, the marina or the repair company often assumes responsibility for the vessel while it is under their care.
This is typically governed by a "bailee" relationship, where the marina (the bailee) is responsible for safeguarding your property. If the marina or repair company causes additional damage to your boat, they may be held liable for that damage.
In most cases, the repair company should have a liability insurance policy designed to cover damages that occur while a boat is under their care. This policy typically covers situations where the company’s negligence or mistake leads to further damage.
For example, if a mechanic accidentally damages your engine while attempting a repair, the repair company’s insurance should cover the cost of the damage. Always double check that you’re working with a professionally licensed marina and read their service contract before handing your boat over for repair.
Your personal boat insurance probably won’t cover any damage done by you or a friend when trying to repair a problem yourself.
With potentially complex fixes, it’s always better to report the damage to your boat insurance provider and take the boat directly to a trained and insured professional for repairs.
Your boat insurance coverage as extra security
Your boat insurance may also come into play, but it usually acts as a secondary option.
If the repair company or marina’s insurance does not cover the full extent of the damage, or if there is a dispute about liability, you may need to file a claim with your own insurance company.
In such cases, your insurer should pay for the damages and then seek reimbursement from the marina or repair company’s insurer through a process known as subrogation. If this happens to you, contact your insurance expert for a detailed explanation of what to expect.
Check your policy: Does your boat insurance cover all accidental damage?
If you haven’t checked your boat insurance policy lately, take a minute to review it to understand what’s covered. Some policies include coverage for damages that occur while your boat is in a marina or under repair, but the specifics can vary quite a bit. Your insurance broker can help clarify the fine details of your coverage and advise on the best course of action in a pinch.
Check your contract with the marina carefully
When you leave your boat at a marina for repairs, you should always sign a contract or service agreement. Never leave your boat with a repair yard that doesn’t have a contract.
When reading over the contract, look for clauses that limit the marina’s liability for certain types of damage or specify how disputes will be resolved. Some marinas may require you to sign a waiver that shifts more responsibility onto you, the boat owner.
Always read these documents carefully before agreeing to them, as they can impact your ability to recover damages if something goes wrong. If something seems off, compare and contrast the contracts between a couple of different boatyards or check their reviews online to see what other customers have to say.
What to do if the marina damages your boat
If your boat is damaged while in the marina for repairs, stay calm and take the following steps:
- Document the damage: Take photos and detailed notes of the damage as soon as you discover it. This documentation will be required for any insurance claims or disputes.
- Notify the marina: Report the damage to the marina or repair company immediately. Provide them with your documentation and ask for a written explanation of how the damage occurred. It’s best to keep all communications in writing for legal purposes.
- Review contracts and policies: Look over any contracts you signed with the marina and review your boat insurance policy to understand your rights and responsibilities.
- Contact your insurance company: Inform your insurer of the situation. Remember, an insurance expert can give peace of mind by guiding you on whether to file a claim, what to expect, and how to proceed with recovering damages.
- Consider legal action: Worst case scenario, if the marina or repair company refuses to accept responsibility, you may need to consult with a lawyer to explore your options.
Overall, if your boat is damaged during repairs at a marina, the boat yard’s insurance will usually cover the costs. However, your own boat insurance may also provide coverage if there are disputes or if the repair company's policy doesn’t fully cover the damages.
Always review contracts and insurance policies carefully, stay calm, and take quick and thorough action to document and report any damages via written reports and photos.
By understanding your rights and the insurance coverage available, you can navigate these situations with greater confidence and peace of mind.
