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Damage on the water but no one at fault: who pays then?
Short answer
Third party liability cover pays only if you are legally liable for the damage,
usually because you made a mistake.
If no one is at fault, for example after a sudden failure nobody could have spotted,
each owner carries their own loss or turns to their own hull cover.
Damage on the water with no one to blame happens more often than you might think. The steering fails without warning, a boat drifts onto the pontoon after an engine failure, a gust pushes the yacht onto its neighbour while berthing. Then the question comes up on forums: why does the other owner's liability policy not pay? The answer: liability cover is not hull cover for strangers. It pays only when its own policyholder is liable for the damage.
On the water, liability almost always rests on fault: going too fast, passing too close, poor mooring, not paying attention. Damage that no one could have foreseen or prevented usually creates no liability. Wash is different: whoever passes moored boats at too much speed and throws them against the pontoon is negligent and liable. The hard part is often proving whose wake it was, so witnesses, photos and an entry in the log count.
If no one is at fault, each owner bears their own loss. That is exactly what your own hull cover is for: it pays for damage to your boat no matter who caused it, provided accident and collision are among the insured perils, so check that in the wording. With liability cover alone you are left with the bill after damage that was nobody's fault. If someone makes a claim against you that you think is unjustified, do not admit it; pass it to your liability insurer. Look for a wording that says the insurer examines the question of liability, defends unjustified claims and pays justified ones, so you do not have to fight the dispute yourself.
Worth remembering
Liability
pays when you are liable
Hull cover
pays even when no one is at fault
No fault, no compensation: then only your own hull cover helps.
Questions
What owners ask us about this
Does the other owner's liability cover pay if they could not help it?
As a rule, no. Liability cover pays only when its policyholder is liable, and on the water that usually requires fault.
Who is liable for damage caused by wash?
Whoever passes moored boats at too much speed is negligent and liable. Secure the evidence: witnesses, photos, and the name or registration of the boat.
What should I do if someone makes an unjustified claim against me?
Admit nothing and report the claim to your liability insurer. Defending unjustified claims is normally part of what liability cover does; check that your wording says so.
Related
Not sure whether you qualify?
Whether it is “Damage on the water but no one at fault: who pays then?” or another question: send us your residence and the flag your boat flies. You will get a straight answer in one email; including a no, if that is the answer.
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