Required Insurance at PNW marinas

[Alaskan Sea-Duction]

From Recreational Boating Association of Washington (RBAW):

Increases in Boat Insurance Liability Coverage Reported for Cruisers to BC​

At a recent annual meeting with RBAW’s counterpart in BC, the Council of BC Yacht Clubs, representatives confirmed that many BC marinas require proof of $2 million liability insurance coverage for transient boaters wishing to tie up. Some marinas are considering raising that limit to $3 million in 2025. Although this is not an entirely new concept in BC, there are personal stories of being refused mooring if a visiting yacht cannot provide documentation showing their coverage meets the increased liability requirement. Since most marine insurance policies written on Washington vessels have a $300,000 to $500,000 liability limit, this suggests that many cruisers intending to cruise North increase limits to $3 million or obtain an “umbrella policy” to cover all of their risks. It is reported that umbrella policies may be acceptable but a call ahead to marinas on your cruising itinerary is recommended. On a related note, not all US marine insurance carriers will agree to expand the liability limits. It is reported that an RBAW member was not able to increase their liability coverage beyond $1 million by Geico/BoatUS and was told that their boat, insured for $195,000, was of a too low value to extend the coverage. That boat owner did find higher coverage with another marine insurance carrier. So before venturing North, check the requirements of favorite marinas both public and private, include reciprocal yacht clubs, and also check with your own carrier as to the possibility of extending coverage if needed. Linda Newland RBAW Delegate from Port Townsend YC​

 

[rochepoint]

Some of the yacht clubs in BC have already increase their required liability to $3,000,000, Burrard & Maple Bay Yacht Clubs are among the first. Here is a thread a while back about it Liability Insurance update

 

[Insequent]

I'm surprised it has been so low until now. Typically Public Liability is $10m here as part of regular comprehensive boat insurance, and some yards want $20m coverage before they will haul you out.

 

[Alaskan Sea-Duction]

Thank you for moving the thread. Not always sure where to post stuff.

 

[Pau Hana]

Interesting how this is popping up again…the last time it did, the underwriter at Red Shield Insurance took it upon himself to call all the marinas in Southern BC and their take was:

• BC insurance carriers do not have the required standalone Oil Pollution Act coverage as US policies do (currently $1.076M as a standalone coverage)- they offer liability coverage and a premium bearing coverage limit for pollution.
• Based on the above, a US resident with $1M liability policy + the statutory limits for the US Oil Pollution Act of 1990 coverage actually has $2M coverage per the Canadian requirement (actually more, when the currency exchange is factored in).
• None of the marinas contacted would turn away a transient boater with a US policy.

The challenge is to get straight answers from the BC government and not rely on speculation or guesses from boating organizations.

 

[Coastie54]

Just for interest sake... our Yacht club raised the liability requirements from 1 million to 2 million two years ago for all vessels, reciprocals included....

 

[Portage_Bay]

Interesting how this is popping up again…the last time it did, the underwriter at Red Shield Insurance took it upon himself to call all the marinas in Southern BC and their take was:

• BC insurance carriers do not have the required standalone Oil Pollution Act coverage as US policies do (currently $1.076M as a standalone coverage)- they offer liability coverage and a premium bearing coverage limit for pollution.
• Based on the above, a US resident with $1M liability policy + the statutory limits for the US Oil Pollution Act of 1990 coverage actually has $2M coverage per the Canadian requirement (actually more, when the currency exchange is factored in).
• None of the marinas contacted would turn away a transient boater with a US policy.

The challenge is to get straight answers from the BC government and not rely on speculation or guesses from boating organizations.

Thank you for the hard facts on this important issue. Much appreciated.

 

[ofer]

it looks like i should invest in a better anchor and a bigger dingy.

 

[SteveK]

it looks like i should invest in a better anchor and a bigger dingy.

You can if you want as long as you have 2mil insurance

 

[twistedtree]

It's just one data point, but I recently stayed at the town dock in Ganges. Their web site says you need to have proof of insurance (can't recall if it was $2m or $3M), so I printed out a copy of our declarations page and took it with me when I checked in. When I got there they told that it was no needed for transients, only for longer lease holders. I promised I wouldn't abandon my boat there.

 

[Alaskan Sea-Duction]

Thank you for the hard facts on this important issue. Much appreciated.

Thank You. I thought RBAW would have been a reliable source of information for the PNW.

 

[Pau Hana]

Thank You. I thought RBAW would have been a reliable source of information for the PNW.

Indeed they are. The RBAW information is very vague vs the information about the actual increase of liability coverage (and the reasoning behind the change).

Canadian maritime law: Limits of liability increased – should your insurance follow?

This past summer, Canada increased the statutory limits of liability of vessel owners and operators by 50% for incidents involving vessels under 300 GT operating in Canadian waters.

www.nortonrosefulbright.com

Interest and increases: Developments in the law on limits of liability in Canadaâ

Marine Liability Act Ontario Court of Appeal decision

www.blg.com

Marine Liability Act (very exciting reading!)

Translation- the settlement amounts in a claim were increased:

• from $1M C to $1.5M C (loss of life or personal injury)
• from $500k C to $$750k C (property damage/any other claims)

so the recommendations were put out to increase policy amounts to $2M and possibly $3M liability.

I was incorrect in my statement regarding the BC government and the lack of legal direction in this matter - the filing was buried in legislation approved and signed into law in summer 2023. At this point, we're deep diving into this to get some tangible info ref the required amount of liability coverage. The impact on recreational boaters and marinas that rely on transient boat traffic may be severe, as many carriers will not offer liability coverage above $1M.

I'll share more when




A private marina can require what they wish in coverage as a condition of dock usage, but

 

[Alaskan Sea-Duction]

Great info. Thanks Peter. Headed north next week.