LIMITATION OF LIABILITY
The greatest fear of a boat owner renting their watercraft is a catastrophic accident where the inexperienced renter causes great bodily harm or death to their group or another boating party. However, the insurance company capitalizes on this fear by charging a 2000% increase in premiums for a boat that is being used by a renter versus the boat owner.
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However, the insurance company is protected by a Supreme Court case that is nearly bulletproof. The Limitation of Liability Act is a law that was enacted over 100 years ago, and it protects all vessels engaged in commerce (yes, private pleasure craft being rented qualifies) from excessive liability created by a boat renter who has caused the law limits the liability, no matter how severe, to the value of the vessel. For example, let's say a boat worth $30,000 was rented and the renter tragically kills everyone on his boat and on another boat. The owner of that boat would be exempt from any liability with a properly executed waiver in most States, but even if they weren't, the maximum liability, no matter how catastrophic the accident, would be limited to $30,000.
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There is only one weakness to the boat owner in this act, and that has to do with negligence and knowledge of a preexisting problem with the vessel. Our unique SONC training system will remove this risk to the boat owner, so he can enter the peer-to-peer boat rental business and sleep well.
