Okay, gang, I'm reviewing what policy I have in front of me and here's my take on it:
- The All Risk Regatta Liability contains an [color]OMNIBUS COVERAGE clause (form 12-02-1095RL rev. 03-04). In this clause, it states:
"It is understood and agreed that the word "Assured" whenever used in the Collision Clause of the policy and in the Protection and Indemnity [color] (bodily injury & property damage) Insurance of this policy, includes in addition to the named Assured ( [color] NAMSA ) any person, firm corporation or other legal entity who may be operating...with the prior permission of the named Assured."
It goes on to indicate that paid members of any organization (including yacht clubs) are not included in this omnibus clause. I would further [color] presume that an incorporated Yacht Club would probably not be covered because they typically have paid operations staff. So if your club is incorporated as a "Yacht Club", there could be coverage issues.
Another item of note - The policy excludes premises Liability. This means that bodily injury and/or property damage occurring on the premesis of the insured will not be covered unless it arises out of the organizing, sponsoring, or undertaking of any regatta AND occurs on the water and away from the dock. To me, this would indicate that accidents in the parking/setup area are not covered. If your sailing club has some owned/rented property, you'd probably be best served seeking some GL coverage on your own. This would also serve to protect the club's interest when not hosting a NAMSA sanctioned event.
The moral of this story - if any NAMSA member has any doubts as to whether they are covered for an activity, they should probably seek their own insurance coverage. This policy is meant to cover NAMSA and NAMSA's interests. In my opinion, $300 PER YEAR for $1 Million in coverage ain't a bad deal for their club.
I would also venture a guess that NAMSA's mission is to be the voice of multihulls, not an insurance umbrella. We're charging WAAAY to little in dues if we're going to become everyone's cheap way out of insurance coverage.
All of this diatribe is my opinion based on my read. I'm trying to confirm these opinions with the underwriter of the coverage. I will let you know my findings.
Heck, all I want to do is have fun going around in circles (triangles) with a boat without getting sued by someone...
Jay
Still haven't heard from the insurer or agent, but NAHCA indicates that their only issue is dealing with those clubs that have incorporated themselves. NAHCA believes that US contract law prohibits one corporation from insuring another (unless it is a sub-corporation). So, if that is the case, than incorporated sailing associations (members or not) would then NOT be able to seek coverage under NAMSA's policy, and should seek their own insurance coverage.
Do we have any contract law experts around to give some guidance? I can see the logic, but want to verify if this provision of contract law indeed exists...
J