INSURANCE INFORMATION NOTICE NO. 95-2
SUBJECT: WET MARINE EXPOSURES (WATERCRAFT)
Recently, the Office of Risk Management was questioned about the reporting requirements of watercraft acquired by any agency. It is the intention of this information notice to clarify reporting requirements and coverages for all watercraft.
If the watercraft is 26 feet in length or less, or is a rowboat (those boats that can be propelled by paddles) of any length, the hull (physical damage) and protection and indemnity (liability) coverages are provided by the blanket property and general liability policies respectively. Watercraft 26 feet in length or less or rowboats must be reported on the property exposure report under the "boat" category. The property policy has a $250 deductible per occurrence. There is no deductible on the general liability policy.
If the watercraft is over 26 feet in length, coverage is not automatic. These watercraft (boats, tugs, ferries, barges, etc.) should be reported immediately at acquisition. These vessels are insured for loss or damage to the vessel, including machinery, fittings and equipment. There is a $250 deductible for hull damage. The commercial coverage for these vessels insures the State's liability for loss of life or bodily injury (both employees of our vessel and third party claimants), property on another ship, and property other than on a ship, such as goods on a wharf, dock, bridge, etc. There is no deductible for this coverage.
If your agency has any watercraft over 26 feet in length which have not been reported previously to the Office of Risk Management, please contact Melissa Harris at (504) 342-8469 immediately.