Boat Liability

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Fire wicket
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Joined: Mon Oct 09, 2017 6:26 pm

Boat Liability

Post by Fire wicket » Sat Jun 16, 2018 6:53 pm

I know, I know...dont buy a boat...well, I am buying a boat anyway

We are not talking about a yacht here...more like a 100-200K boat fishing/pleasure boat.
I want asset protection though.
I will have maximal boat insurance (300K) with an umbrella policy of 2 million.
I live in TN.
Aside from insurance, are there any recommendations on titling? (wife and I, only wife, or only me?).
I have read about basic LLC filings and boat titling through the LLC (these seem cumbersome and I question whether they would even hold up in court given they are not real corporations (AKA no bank account, revenue, employees...ala LLC=Me=my assets to a judge).
FLP seems quite similar to the LLC route.

Does anyone have any wisdom on how to title the boat or any other ways to avoid liability.

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bottlecap
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Location: Tennessee

Re: Boat Liability

Post by bottlecap » Sat Jun 16, 2018 8:25 pm

I would title it in one of your names only if I was concerned about liability. If you title it in both your names and someone gets hurt, both of you will definitely get sued just because of that. That's not to say you won’t both get sued otherwise, but the titled owners are automatically getting sued.

I doubt an LLC is going to do naything for you unless this boat is for your business LLC, but you could speak with a lawyer to be sure.

Off the cuff, I'd title it in one name and insure the heck out of it.

JT

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LadyGeek
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Re: Boat Liability

Post by LadyGeek » Sat Jun 16, 2018 8:56 pm

This thread is now in the Personal Finance (Not Investing) forum (title).
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

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tadamsmar
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Re: Boat Liability

Post by tadamsmar » Sat Jun 16, 2018 9:08 pm

I don't think an umbrella policy covers LLC assets, but I know they will cover at least some types of boats directly owned by the policy holders, you need to let the umbrella insurer know you own a boat.

Also, I doubt that an LLC would provide much protection if you are the skipper and maintainer of the boat.

You should probably just have liability insurance, avoid negligence, and reveal any non-obvious hazards to anyone exposed to them.

But, I am not a lawyer, check with a lawyer.

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tadamsmar
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Re: Boat Liability

Post by tadamsmar » Sat Jun 16, 2018 9:19 pm

The Power Squadron seems to be a good source on boat insurance.

freebeer
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Location: Seattle area USA

Re: Boat Liability

Post by freebeer » Sun Jun 17, 2018 8:56 am

Fire wicket wrote:
Sat Jun 16, 2018 6:53 pm
I know, I know...dont buy a boat...well, I am buying a boat anyway

We are not talking about a yacht here...more like a 100-200K boat fishing/pleasure boat.
I want asset protection though.
I will have maximal boat insurance (300K) with an umbrella policy of 2 million.
I live in TN.
Aside from insurance, are there any recommendations on titling? (wife and I, only wife, or only me?).
I have read about basic LLC filings and boat titling through the LLC (these seem cumbersome and I question whether they would even hold up in court given they are not real corporations (AKA no bank account, revenue, employees...ala LLC=Me=my assets to a judge).
FLP seems quite similar to the LLC route.

Does anyone have any wisdom on how to title the boat or any other ways to avoid liability.
What is the probability of an incident with > $2M exposure that lawyers bother to go after you rather than settle with sure pay from insurer? Seems like must be very small chance unless maybe you have $100M+ net worth.in which case your family office lawyer should be answering this, not us.

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tadamsmar
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Joined: Mon May 07, 2007 12:33 pm

Re: Boat Liability

Post by tadamsmar » Sun Jun 17, 2018 12:21 pm

Apparently, taking a boating course can lower your insurance, google the topic. See, for instance:

http://americanboating.org/boating_ed_l ... emiums.asp

tmcc
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Joined: Tue Feb 06, 2018 6:38 pm

Re: Boat Liability

Post by tmcc » Sun Jun 17, 2018 6:30 pm

I had a center console a few years back. it was fun. just remember when considering anything that has to do with a boat....


B.O.A.T. - Break Out Another Thousand

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