We insure a boatowner and another insurer writes the homeowners coverage. To protect his boat from banging into the dock, the insured installed a rubber bumper on the dock where the boat is kept. A woman who was walking on the dock slipped on the bumper and turned her ankle. The liability claim is being denied by the homeowners carrier under the “watercraft” exclusion. We don't believe that the injury arose out of the insured's ownership, maintenance, or use of his boat; it seems to us that the injury was related to a condition on the dock that was created by the installation of the bumper. Who is right—the homeowners carrier or our company?
Illinois Subscriber
The homeowners insurer probably views the use of the equipment as part of the boat's “maintenance” (“the upkeep of property”) since the main purpose of the bumper is to keep the boat in good condition. However, this is really a question of premises liability. The injury was caused by a condition on an insured location that was created by the existence of the equipment on the premises. Homeowners policies include premises liability for locations used in connection with a residence premises, and the dock is such a location. The situation is no different from one where a person walking on the dock trips over the insured's picnic basket.
Most boatowners policies cover the insured's legal liability arising out of the ownership or use of the insured boat. Although an argument can be made that the installation of the bumper on the dock was tied to the “use” of the boat, the boat itself was in no way involved in this accident.
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