I have often discussed the importance of using strong boat rental checkout procedures with my marina and resort clients. Strong checkout procedures are critical in any successful boat rental operation. Another equally important issue is proper boat maintenance and documenting the maintenance of each boat in a rental boat fleet.
A marina or resort’s boat rental customers will often be inexperienced in the operation of a watercraft. Strong checkout procedures will help the rental customer in the operation of the boat but a poorly maintained boat can lead to potential injuries related to equipment failure. A poorly maintained motor can lead to engine failure and even fire.
Potential lawsuits related to boat rental operations are usually based on an allegation that the rental company failed to insure that the rental customer was properly checked out on the safe operation of the boat, which led to injuries or property damage. Lawsuits can also allege that the rental company failed to perform proper maintenance of the boat, which then led to injuries or property damage.
To reduce the risk associated with boat rental operations, it is essential that boat rental companies use strong boat rental checkout procedures and it is just as important to perform proper boat maintenance based on the manufacturers maintenance schedule for each boat in the boat rental fleet. It is critical to document that maintenance by using written maintenance records for each boat in the fleet and keeping those on file for at least 3 years. Those records should be kept in a safe and secure location away from the primary rental operation.
If you have a boat rental operation, ask yourself if you are using good checkout procedures as well as performing proper boat maintenance and if you are maintaining those maintenance records. You never know when you might need to pull information from past boat rentals to protect yourself from a lawsuit.
For boat rental operators, have you been sued due to your boat rental operations? If so, I would like to hear from you. Please comment on this article. Thanks!
Doug Timmons, CIC, CMIP
Marina and Resort Insurance Specialist
Commercial Risk Service
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