Member of Boat Club an Owner or Renter of Boats?

April 14, 2010

We have been presented a claim where the claimant was injured on a boat. The boat was part of a boat club where the insured pays dues of $14,000-15,000 for a five year membership and they have use of the boats. Would this membership be considered a rental or ownership of the boat?

North Carolina Subscriber

Having a membership to the club does not make one an owner of the boats; the claimant can't pick and choose a boat and then sell it for cash as if it was his own personal property. The membership allows for use of the boats, but no ownership. Likewise, it is not a rental because he receives benefits other than the use of the boats; he does not have to pay extra to use the boats, that is part of the membership. He's entitled to use the boats, have dinner at the club, and whatever other benefits the club allows. The yacht club should have its own coverage for injuries to members.

 

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