WT 05 01–PERSONAL WATERCRAFT COVERAGE

(January 2020)

The unendorsed Watercraft Policy excludes coverage for items it deems to be “personal watercraft.” The term means any object powered by an inboard motor, propelled by a jet of water, carrying at least one person and used for recreation. Riders may be accommodated in a sitting, standing or kneeling position.

This optional endorsement permits an insured who owns such property to add protection under his or her watercraft policy.

Schedule

This portion of the form allows entry of the following information:

Property description
Inclusion of passenger hazard
Limits of Liability (for liability medical payments, uninsured watercraft and physical damage)
Deductible

Note: Limits and deductibles may be selected separately for each property item scheduled.

I. Definitions

The form replaces the Watercraft Policy’s definition of “your covered watercraft.” Under this endorsement, the term refers to the property appearing in the separate schedule or on the Watercraft Policy declarations. Newly acquired personal watercraft are covered, but only for 14 days following the acquisition unless reported to the insurance company. The term also applies to personal watercraft in an insured’s possession because it is a substitute for such property that is unavailable. If the substitution is due to covered property that is broken, undergoing repair, being serviced, or has been lost or destroyed, the substitute property qualifies as a covered item.

II. Part A - Liability Coverage

A. Coverage

This form amends coverage under the Watercraft Policy by substituting its own definition of “insured.” In this case, the term applies to the named person and any family member while using personal watercraft owned by the insured, any other person while using the insured’s personal watercraft, as well as any entity that has liability related to an insured’s actions in connection with personal watercraft.

Example: Glen belongs to the Rainland Sailing Club. He is one of the volunteers for the Club’s annual charity sailboat race. His job is to patrol the area on jet skis to help keep the race’s starting area clear. While attempting to ask a couple to row out of the area, he crosses their path too closely. Glen creates a wake that capsizes the rowboat and injures its passengers. The boaters sue Glen as well as Rainland Sailing. Glen’s insurer defends both parties.

B. Exclusions

This section of the form alters the Watercraft policy by modifying the exclusions so that the endorsement responds to loss involving personal watercraft that is described either in the form or on the declarations. It also adds an exclusion that denies liability coverage for any insured who injures another party that is either riding on or is being towed by any described personal watercraft.

Note: This additional exclusion only applies when the endorsement indicates that the “Passenger Hazard” coverage has NOT been selected.

III. Part B - Medical Payments Coverage

This form adds medical payments coverage by wording that makes the coverage applicable only to the named insured and family members who are injured while operating owned personal watercraft. The modification makes it dovetail with the Watercraft Policy’s protection for boats, boating equipment and trailers.