Lake Liability

[ktm300]

I am pursuing a lake lease and seem to be getting somewhere. I think I understand how all the layers of insurance work between the AWSA member insurance, the boat insurance and a standard commercial liability policy but, I want to make sure I'm right before having my next conversation with the owners. I just don't want them to catch me being incorrect about anything at this stage. I was quoted an estimate of 4k for the commercial liability policy. Ouch, but would pay in a heartbeat to get the lake. Thanks. Since this is a somewhat complicated issue to type about, if someone is willing to discuss with me, my cell is 770 654-8827 David.

[RichardDoane]

$4K seems like a deal, I think our lake owner pays about $6K.  Sounds like you should form an AWSA sanctioned waterski club, and then check into insurance from that perspective with the AWSA.

[nam1975]

4k sounds in the range, but that depends on all of the X factors involved.

Check laws in your state....many states very strongly protect land owners who grant others permission to use their property for recreational purposes...i.e fishing, hunting, camping, hiking, etc. You assume all the risk in your activity.

Outdoorsmen (hunting, fishing, etc) in these states pushed to get these laws passed back when frivolous lawsuits were taking off.

A lease is a legal agreement and would be in effect, but you could put this same language in the lease to make the land owner at ease and have the same language in your state.

 

Good luck...take care of the owners and don't just write a check....cut grass, stock fish,teach their kids to ski, BBQ for them...that's what make these things work out.

 

 

 

 

[A_B]

We formed a LLC to own the land and insure the land/water for $2mill.

Also, each owner carries an umbrella policy.

The club and everyone that skis there are competitive members of AWSA.

Everyone signs the standard waiver to ski.

The AWSA insurance is pretty limited and requires a lot of paperwork to record skiing.

[lkb]

AB, does your LLC use the lakeowner's liability insurance that Global Marine sells? Just curious..I use it but I actually don't know any other lakeowner that does.

[A_B]

We have the LLC carry commercial insurance.  It is about $700 per year for vacant land.  I discussed in depth with our agent who knows there is a lake used for skiing/recreation on the land, and he assures me that if someone drowns, invited as a guest or not, we will be covered.  If we run someone over with the boat, we have personal umbrellas to cover individual acts of negligence.   My biggest concern is someone going out there without an owner, trespassing, fishing, or whatever, and getting hurt or drowning.  The LLC can get sued, but in theory, the partners are isolated, per Ohio law. 

 I file a 1065 and issue K1's to the owners, as we do rent some of the ground to a farmer, and have various expenses, like dye, insurance, etc.  The taxes can get passed directly to te shareholders, and the entity is a passive real estate investment, so no real benefit to the expenses, other than deduct from sale price if and when we sell.

Just one way to look at it.

[lkb]

Thanks for the info. My lake is going to be be put into an LLC as soon as my current legal work (divorce) is done. As an individual owner the only way I can get liability coverage is through the USAWS/Global Marine program. $3900 a yr. Ouchy! But it covers the trespasser who falls in and drowns.

[A_B]

Check a few independent insurance brokers in your area for commercial vacant land, unless you live there and run a ski school business. It might work for you as well