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WATERSKI MagazineSki boats, by their very nature, and the manner in which they are used present some unique liabilities. Very few insurers, however, have developed policies that address the special needs of skiers.
Insuring any boat breaks down into two basic categories of risk management: fixing the boat and related equipment – like a trailer – if damage, failure or loss occurs; and paying for adequate medical and related expenses resulting from injury. Or at least that's the way it's viewed by the majority of insurance companies. Few offer an “all risk” policy for the active amateur water skier or those who want to host a skiing event.
On the loss and damage side of things, insuring a ski boat is quite similar to insuring a standard pleasure craft. No hull is impervious to unseen floating objects. Engines can puke a piston and require a costly rebuild. A trailer wheel can screw off, sending the boat careening into a roadside ravine. Or some malcontent can simply abscond with your pride and joy.
So with any boat, you want to be sure that you obtain adequate coverage to fix or replace the craft, especially in the out years when depreciation has added up.
There are many boat insurers, and most can offer a policy, but the majority of companies categorize ski boats as high-performance vessels and will charge a premium on them. More important, it is on the liability side of the wake that you must do your homework to obtain proper and affordable coverage.
It wasn't until 1985 that anyone even addressed the special insurance needs for complete coverage of very active skiers and skiing events. That year, the American Water Ski Association (AWSA) became involved in helping to develop a skiing-specific policy to cover AWSA-sanctioned events.
And what about the use of a promotional boat? An admiralty attorney would qualify the use of the boat as a commercial craft, opening up a host of additional considerations. The truth is, most insurance companies view water skiing as an inherently dangerous activity.
Fortunately, with a little research you can find a few well-thought-out insurance plans. Ski Safe of Lake Success, New York, is one such company. According to Ski Safe vice president Howard Reiff, his company takes a much more congenial approach to covering water skiing. Ski Safe recognizes that active skiers present a lower risk than the typical recreational boater, siting their experience, boat handling, and maintenance practices to support this statement. Unfortunately that view is the exception in the insurance industry and not the rule.
