Understanding Your Legal Liability to Guests

When a guest steps aboard, the typical boat owner is more likely to be thinking more about having lunch or getting underway than worrying about his legal duties and responsibilities as "Master" of the vessel. But if that guest were to stumble and be injured, you can bet the boat owner would quickly ponder what, if anything, could have been done to have prevented the injury and, heaven forbid, whether he might be liable.

The question of liability is both simple and complex, steeped in more than 3,000 years of maritime legal principles dating back to the Phoenicians. Admiralty law, like land-based legal concepts, starts with the premise that a property owner owes his invited guest a duty to exercise ordinary or reasonable care for the safety of the guest.

Deciding just what constitutes reasonable care can be especially complicated on a boat, which is bobbing, slippery and filled with obstructions. It has a great deal to do with the experience of the boat owner and the boating experience of the passenger and whether the boat owner had or should have had knowledge or notice of some dangerous condition. Additionally, it may depend on whether the owner knew or should have known his guest was unaware of or unfamiliar with the condition.

The duty to exercise reasonable care is rooted in the duty to provide a reasonably safe boat for the invited guest. This does not require that the boat be accident proof. Under the law, the applicable standard of care requires the boat owner to provide a boat that is reasonably safe, not one that is absolutely safe.

A guest also has some responsibility - a duty to exercise care for his or her own safety. A guest cannot simply walk blindly about the boat. But reasonable care does mean that you may be held accountable if you fail to warn a guest, for example, about a ladder you know is unstable.

For those affected by storms, some safety tips .....

Generator Safety Tips

• Use proper care. Proper ventilation is critical to reducing the risk of carbon monoxide poisoning from a generator’s engine exhaust. Carbon monoxide (CO) poisoning is a common, serious danger that can cause death if generators are used improperly; this is particularly true when the fuel is not burned completely.
• Placement is key. Never use generators indoors or outside near windows, vents, or air intakes that could allow CO to come indoors.
• Keep other items clear. Maintain plenty of air flow space around the generator.
• Pay attention. Get fresh air immediately if you begin to feel sick, dizzy or light-headed or experience flu-like symptoms.
• Buy CO detector. Because CO is invisible and odorless, it makes sense to buy a CO detector (similar to or sometimes combined in a smoke detector) to warn of rising CO levels.
• “Ground” your generator. Carefully follow all instructions on properly “grounding” the generator.
• Keep the generator dry. Short circuits may occur in wet conditions, which can cause a generator fire. If needed, place the generator under an open canopy–type structure.
• Be prepared. Always keep a fully charged fire extinguisher nearby.
• Leave it to the professionals. To avoid electric shock or electrocution, do not try to fix or otherwise work on a generator.
• Organize your cords. Keep cords out of the way to avoid injury, but keep them in plain view to keep track of cord damage (such as fraying or cuts) that could cause a fire.
• Do not “back feed” power. Do not plug the generator into a wall outlet. Back feeding will put you and others, including utility line workers, at serious risk because the utility transformer can increase low voltage from the generator to thousands of volts.
• Know local laws. Some states have laws making the generator owner responsible for taking steps to make sure that the generator’s electricity cannot feed back into power lines; additionally, owners of commercial, industrial, or residential generators must notify the local utility of their locations.
• Don’t touch. It’s hot. The exterior portions of a generator, even if operated for only a short period of time, can become hot. Avoid touching the generator without protective gear and keep debris clear to avoid a fire.

DON'T LOOK NOW BUT....IT'S HURRICANE SEASON

A Purchase Agreement Should Include:

• Date
• Name of purchaser and (if applicable) co-purchaser, their address and phone number
• Name of seller and co-seller, their address and phone number
• Broker (if applicable) If a broker is used, they will provide the purchase agreement
• Description of boat, including: Manufacturer, Model, Year, Length, Hull #, Engine #
• Trailer Documentation # (manufacturer, model, year, and serial number, if applicable)
• Location of boat
• Selling price and terms/conditions of purchase
• Deposit received $ _______ and date the deposit was received _______
• Closing date
• Liens of encumbrances (the boat is sold free of any liens, bills unless otherwise stated and agreed to. The owner warrants that he has a marketable title and the lawful right to sell the boat (and trailer if appropriate) and will deliver all the necessary documents for the transfer of title.)
• Additional terms and conditions: Transaction is subject to acceptable survey; acceptable sea trials and (if applicable) financing; the boat must be insurable; the deposit is refundable in full to the purchaser if any of the above items are unsatisfactory; copies of current state title and registration and current certificate of documentation (if applicable) should be attached to this agreement.

The purchase agreement's signed, you've paid a 10% deposit, and the boat has passed the surveyor's inspection and sea trial with flying colors.

It's time to write the seller a check and take the boat home, right?

Not just yet.

Ask to see the following documentation to help authenticate the seller's ownership:

1. A bill of sale showing that the seller actually owns the boat.

The document should show his name and a description of the boat and its HIN (Hull Identification Number). Make sure the HIN on the boat (located on the starboard side of the transom) matches the one on the seller's records.

2. Boat insurance policy listing the owner's name and boat description.

3. Boat's certificate of title and/or state registration.

TIP: Some states don't require titling, so if the seller doesn't have a title, make sure you see the bill of sale from when he bought the boat.

If you have all the proof of the seller's ownership and everything looks fine, get out that checkbook and buy that beautiful boat.

After The Sale

At last, the boat is yours! Before you hit the water, here are some things to consider:

1. Call MARITIME COVERAGE CORP for an insurance quote.

Is my extended-service contract an extension of my manufacturer warranty?

A: Nope. Service contracts are insurance policies, often underwritten by third parties not associated with manufacturers. These contracts are moneymakers for dealers; some retailers can mark up contracts more than 100 percent over the actual cost paid to the service-contract company. A true warranty offers broad coverage and has the weight of state and federal warranty laws behind it. The best service contracts are those backed by large manufacturers, and some offer their own in-house service contracts. Read the fine print. Most defects in new boats and engines show up within the original warranty period, so spending money up front on a service contract may be a waste of money.

Q: Does my new-boat warranty cover my engines, too?

A: While the boatbuilder offers a warranty on the boat itself, usually the engine manufacturer provides separate warranty coverage for the engine(s). As a result, you may have to go to two different places for warranty repairs. Look for dealers that have technicians who can provide warranty work for both — a big plus. Read your new-boat warranty to learn what the dealer can fix and what you may have to take elsewhere for repairs, such as electronics. A few boat manufacturers now offer true "bumper-to-bumper" warranties that cover everything on the boat, just like new-car warranties.

Q: I'm an experienced boater who does my own maintenance. Will this void the warranty?

A: No, provided you follow the manufacturer's recommended schedule and use quality parts and fluids. Keep detailed records of maintenance, including dates of service, engine hours at time of service, and a description of services and/or parts installation performed.

Aren't boat and car insurances pretty much the same?

A: They're different. With boat insurance, you'll buy a policy with an agreed value (an amount you and your insurance company agree your boat is worth) or an actual-cash-value policy (what your boat's "book value" is at the time of the incident). With an agreed-value policy, you'll receive the agreed-upon amount if your boat is totaled. An actual-cash-value policy may give you less than you anticipated.

If you're in a car accident, in most cases you simply call your insurance company and drive your car to an authorized shop. A few days later, you pick it up, sign a document, and you're on your way. Boat claims are different because of the vast differences in boats, the lack of standardized repair parts, and the challenges of making sometimes-complex repairs using a much smaller pool of repairers. Boat repairs also are often significantly more expensive than owners expect