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Misappropriation
Boat insurance term, area: Exclusions
Misappropriation means that someone who was lawfully holding the boat decides to keep her. The difference from theft lies at the beginning, not at the end. Forcing a lock at night is theft. Borrowing a boat for a weekend, chartering her for a season or taking her in for repair and then failing to return her is misappropriation. To the owner the berth looks just as empty either way, but in law these are two different events, and hull wordings treat them separately.
What to check: Does your hull wording name misappropriation, fraud or breach of trust separately from theft, and on what terms? What happens if the person who fails to return the boat is someone you entrusted her to, such as a yard or a charter agent?
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A general explanation in our own words.
What applies to you is set only by the wording of your own policy.
