It says what it means and it means what it says
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A yacht ran aground, listed and foundered within 200 yards of the Anchorage Marine dock in Fort Lauderdale. An all risk yacht policy through Lloyd’s of London was in effect at the time of the occurrence, but the carrier still denied coverage. Why?
The yacht came from Greece and arrived at Anchorage Marine for renovations. The owner decided to save some money and requested that a “laid up and out of commission” endorsement be attached to the all risk yacht policy since it would be at Anchorage Marine for four months. The repairs required the removal of all ballast and porthole covers but the engines remained operational.
The yacht sailed, under its own power, a half mile up New River to Cable Marine for additional required repairs. On the return trip, it foundered and the loss occurred.
The insured argued that the loss occurred within the operating territory and during the repair process. However, after seven years of litigation, the courts ruled that the endorsement was clear and unambiguous. A yacht operating under its own power is not laid up and out of commission and Lloyd’s was correct in denying coverage.
Click here for more detail on this court case. |
