PDA

View Full Version : Insurance for private lake?


jkski
05-25-2007, 08:32 AM
I am getting closer to finally securing that private site we all dream of, and since I will only be leasing the property, I wanted to get some feedback regarding insurance. Specifically, any of you who currently lease private water from someone, other than having a club policy through USA Waterski, what other policies do you have in place and what do they cost?
Thanks in advance.

Monte
05-25-2007, 08:35 AM
Is it just you, family members, and friends that will be using the private lake, or is it going to be a group of people going in to pay the lease?

G-man
05-25-2007, 10:41 AM
Our poa has insurance on our lakes. We have a jump, this adds to the cost. Insurance is about 7000. for a four lake site. Ski safe wanted over 12000. 2 years ago. It is not easy to get. several companies did not even want to quote.

jkski
05-25-2007, 11:01 AM
Is it just you, family members, and friends that will be using the private lake, or is it going to be a group of people going in to pay the lease?

The site will be mostly friends who pay $1500-$2k/year, which will go towards paying the lease, property upkeep and any improvements we need/want to make, such as docks. I am planning to set-up a club that will actually lease the property, so that it is not leased in name to any one individual, hoping that will add a layer of protection (keep in mind I am not an attorney, so my thinking could be way off).
The people that will be skiing there will all be people that I have met over the years and skied with. People who have common interests and enjoy family and being on the water, so I am hoping that like minds will prevail and help to govern things to some extent.

Monte
05-25-2007, 11:10 AM
With multiple payors, I would follow G-mans advice. That is going to be a very specialized type of ins.

rodltg2
05-25-2007, 11:15 AM
i believe if you get all the members who will be driving boats on the site to take the USA Waterski boat class you can get a discount. we did that at a lake i ski at.

G-man
05-25-2007, 12:37 PM
Form an official USA-Waterski club for your site.

André
05-25-2007, 03:40 PM
Send a pm or e mail to Robert Averyth (sp) from this site .He owns a lake in College Station ,Texas and had all kind of problems with insurance.Maybe he can help you!:)

Cottonwood
05-25-2007, 04:18 PM
Let me lead off by saying I am NOT an attorney or risk management specialist. I am a lake owner and once leased a lake. I would investigate the USAWS insurance plan. It takes jumping thru some hoops from a planning perspective but if you follow the rules, it will save you a bunch of cash. Form a club and an LLC. Since you are leasing, the club really has no assets other than the lease. I would avoid private insurance in your case if possible. It is extremely costly, has exclusions out the *#* and generally comes with a large deductible. And if the club has no assets, then the chances are rare that some ambulance chaser is going to come after your club. Again, just my $.02.

Monte
05-25-2007, 05:25 PM
And if the club has no assets, then the chances are rare that some ambulance chaser is going to come after your club. Again, just my $.02.


Everything else you said is true, but if somebody gets injured, and are willing to get an atty. THAT atty is going after everything he can get..:twocents:

The LLC is extremely important..

phecksel
05-25-2007, 08:12 PM
Let me lead off by saying I am NOT an attorney or risk management specialist. I am a lake owner and once leased a lake. I would investigate the USAWS insurance plan. It takes jumping thru some hoops from a planning perspective but if you follow the rules, it will save you a bunch of cash. Form a club and an LLC. Since you are leasing, the club really has no assets other than the lease. I would avoid private insurance in your case if possible. It is extremely costly, has exclusions out the *#* and generally comes with a large deductible. And if the club has no assets, then the chances are rare that some ambulance chaser is going to come after your club. Again, just my $.02.

Carefully read the policy. USAWS policy has a huge deductible and some very tough to meet hoops and details. Miss one detail, the policy is null and void.

Cottonwood
05-25-2007, 11:36 PM
I would agree that an attorney will look to place responsiblity due to the negligence of the club but as stated, if the only asset is the lease and a checking account with $1,000 in it, there is little to be gained.

USAWS may have a large deductible ($10k I believe) but that is no different than a policy costing thousands of dollars. Form an LLC, sign your club up as a member of USAWS and move on. Make certain that the language in your LLC and Operating Agreement reads similar to this:

ARTICLE V
The Members of this Limited Liability Company shall be indemnified by the Limited Liability Company for any judgments, settlements, penalties, fines or expenses incurred because such Member is or was a Member of this Limited Liability Company.
ARTICLE VI
The Members of this Limited Liability Company shall not be liable for any breach of fiduciary duty.

This should relieve the individual members of liability incurred on the part of the LLC (ski club).

Again, there is no cure-all for the transfer of risk outside of spending a large sum of money. Take steps to insulate yourself personally from the acts of the LLC and hope for the best. Afterall, if someone wants to sue you, there is nothing to stop them. Collecting, is a different story. The latter tends to influence the former.

jhd

phecksel
05-26-2007, 11:06 PM
USAWS may have a large deductible ($10k I believe) but that is no different than a policy costing thousands of dollars.

When I looked into it a couple of years ago, the deductible was $75k, and the requirements nearly impossible to achieve.