The Insurance Services Office (ISO) offers a Watercraft Policy, WT 00 01 01 10. The policy provides a comprehensive property and liability program for personal lines watercrafts.

The form provides bodily injury and property damage liability, medical payments, and physical damage coverage.

Topics covered:

Introduction

Definitions

Liability coverage

Liability supplementary payments

Liability exclusions

Medical payments coverage

Medical payments exclusions

Property coverage

Additional property coverages

Property exclusions

Endorsements

Introduction

The policy is designated for watercraft, outboard motors, and watercraft trailers that are owned by individuals or married spouses who both reside in the same household. Both may be listed as named insureds on the policy. The property must be written on a specified basis.

The policy may also be used for watercraft, outboard motors, and watercraft trailers that are owned jointly by two or more individuals—other than married spouses—who reside in the same household, provided the policy is only for jointly owned property and the Watercraft Joint Ownership Coverage endorsement, WT 03 01 01 10, is attached.

The insurance is excess with respects to watercraft, motors, or trailers not owned by the insured and watercraft, motors, or trailers being transported by land motor vehicles.

Definitions

A. Throughout this policy:

1. “You” and “your” refer to:

a. The “named insured” shown in the Declarations; and

b. The spouse, if a resident of the same household.

2. If the spouse ceases to be a resident of the same household during the policy period or prior to the inception of this policy, the spouse will be considered “you” and “your” under this policy but only until the earlier of:

a. The end of 90 days following the spouse's change of residency;

b. The effective date of another policy listing the spouse as a named insured; or

c. The end of the policy period.

B. “We”, “us” and “our” refer to the Company providing this insurance.

C. In addition, certain words and phrases that appear in quotation marks are defined throughout the policy as follows:

1. “Bodily injury” means bodily harm, sickness or disease, including death that results.

2. “Business” includes trade, profession or occupation.

3. “Family member” means a person related to you by blood, marriage or adoption who is a resident of your household. This includes a ward or foster child.

4. “Newly acquired property”:

a. “Newly acquired property” means any of the following types of property you become the owner of during the policy period:

(1) A watercraft, other than a “personal watercraft”;

(2) An “outboard motor”; or

(3) A “watercraft trailer”.

b. Coverage for “newly acquired property” is provided as described below:

(1) “Newly acquired property” will have the broadest coverage we now provide for any property of the same type shown in the Declarations. Coverage begins on the date you become the owner. However, for this coverage to apply, you must ask us to insure it within 14 days after you become the owner.

(2) If you ask us to insure “newly acquired property” after 14 days, any coverage we provide for “newly acquired property” will begin at the time you request the coverage.

5. “Non-owned watercraft” means any watercraft, including its motor and “watercraft trailer”, which is not owned by or furnished or available for the regular use of you or any “family member” while in the custody of or being operated by you or any “family member”.

6. “Occupying” means:

a. In;

b. Upon; or

c. Getting in, on, out or off.

7. “Outboard motor” means any motor designed to be attached to a watercraft, including:

a. Fuel tanks and other pressure control tanks; and

b. Electric starting equipment or controls necessary for the operation of the motor.

8. “Personal watercraft” means a recreational watercraft powered by an inboard motor with its primary source of propulsion being a waterjet pump, which is capable of carrying one or more persons in a sitting, standing or kneeling position.

9. “Property damage” means physical injury to, destruction of or loss of use of tangible property.

10. “Watercraft trailer” means a vehicle that is designed to:

a. Be pulled by a private passenger auto, pickup or van; and

b. Transport a watercraft on land.

11. “Your covered watercraft” means:

a. Any watercraft shown in the Declarations, including its dinghies and tenders.

b. Any “outboard motor” shown in the Declarations.

c. Any “watercraft trailer” shown in the Declarations.

d. “Newly acquired property”.

D. For purposes of this policy, a watercraft, “outboard motor” or “watercraft trailer” shall be deemed to be owned by a person if leased:

1. Under a written agreement to that person; and

2. For a continuous period of at least six months.

Analysis

The definitions are standard for many insurance policies, such as the references to “you,” “your,” “we,” and “our,” and the definitions of “bodily injury,” “property damage,” “family member,” “occupying,” and “newly acquired property.” Note that the spouse is an insured as long as the spouse is a resident of the household. If the spouse moves out, he is covered until the earliest of the end of 90 days of the residency change, the effective date of a policy in the spouse's name, or the end of the policy period.

The following are watercraft-specific definitions that should be noted:

Non-owned watercraft. A watercraft—including its trailer and motor—not owned or furnished for regular use by the named insured or any family member while being operated or in the custody of the named insured or family member. This could be a watercraft an insured rents or borrows while on vacation.

Outboard motor. Any motor designed to be attached to a watercraft. Fuel tanks, other pressure control tanks, and electric starting equipment or controls needed to operate the motor are also included.

Personal watercraft. A recreational watercraft powered by an inboard motor, capable of carrying one or more persons.

Watercraft trailer. A vehicle designed to be pulled by a private passenger vehicle and to transport a watercraft on land. The insured may keep the watercraft at his home, and transport it on weekends to a local lake.

Your covered watercraft. Watercraft—including dinghies and tenders—outboard motors, watercraft trailers, or newly acquired property shown in the declarations.

Leased trailers or motors—if leased continuously for at least six months—are considered owned by a person for purposes of the policy.

The Watercraft Policy Program Manual rules state that a watercraft “is not a hovercraft, flarecraft or submarine; or an air-propelled, experimental or modified watercraft.” It is also “not used for the collection, delivery or transportation of goods or materials; is not used as a public or livery conveyance for passengers; is not rented to others; and does not employ a captain or crew.”

Liability Coverage