Denied Boating Accident Claim? What To Do Next

Boating accidents, unfortunately, are not uncommon. In 2023, the U.S. Coast Guard counted 3,844 boating accidents, resulting in 564 deaths and $63 million in property damage. While many boat owners carry insurance to protect themselves from financial losses in the event of an accident, dealing with insurance companies can be challenging, especially when a claim is denied. Did you know that a staggering 70% of boating accident claims face rejection? If you’ve had a boating accident claim denied, it’s essential to understand your rights and the steps you can take to challenge the decision.

Common Reasons for Boating Accident Claim Denials

Insurance companies may deny boating accident claims for various reasons. Understanding these reasons is the first step in determining how to proceed. Here are some of the most common:

Policy Exclusions: Many boat insurance policies have specific exclusions, such as damages caused by wear and tear, gradual deterioration, or lack of maintenance. If the insurance company believes the damage falls under one of these exclusions, they may deny the claim.
Lack of Maintenance: Insurers may deny a claim if they believe the damage resulted from the boat owner’s failure to properly maintain the vessel. Keeping a detailed log of all maintenance, repairs, parts, and labor done on your vessel is essential.
Incomplete or Untimely Filing: Insurance companies may deny claims if the claim was incomplete or not filed within the timeframe specified in the insurance policy.
Improper or Inadequate Coverage: It’s essential that the policy provide the types of protection needed. Policyholders should not pay for coverage that is not needed. Pay special attention to the exclusions part of the policy, as many coverage issues are caused by what a policy excludes.
Operator Negligence: If the accident was caused by the operator’s negligence, such as operating the boat under the influence of alcohol or drugs, or reckless operation, the insurance company may deny the claim.
Misrepresentation or Fraud: If the insurance company suspects that the boat owner provided false information during the application process or when filing the claim, they may deny the claim.
Unreported Incidents: Failing to report the accident promptly can also lead to a denial. Insurance companies usually require prompt reporting of accidents or damages. If there’s a significant delay in reporting, your claim could be denied.

Steps to Take After a Boating Accident Claim Denial

If your boating accident claim has been denied, don’t give up hope. Here’s a step-by-step guide on what to do next:

Review Your Policy: Carefully review your insurance policy to understand the terms and conditions, coverage limits, and any exclusions that may apply to your situation.
Understand the Reason for Denial: Review the insurance company’s explanation for the denial and check if it aligns with the reasons stated in your policy. Request a written explanation from the insurance company detailing the specific reasons for the denial.
Gather Evidence: Collect all necessary evidence to support your claim. This may include:
- Photos of the damage to your boat and any other property involved.
- Repair estimates from qualified marine mechanics.
- Witness statements from anyone who saw the accident.
- Police reports or official accident reports.
- Medical records if you or anyone else was injured in the accident.
- Vessel maintenance records.
- Contact the Insurance Company: Reach out to your insurer to seek clarification on the denial. Discuss the denial with the insurance adjuster and try to understand their reasoning. Politely point out any inconsistencies or errors in their assessment.
- Submit a Formal Appeal: If you believe your claim was wrongfully denied, submit an appeal or reconsideration request. Most insurance policies allow you to appeal a claim denial. Follow the insurance company’s specific procedures for filing an appeal, and be sure to include all supporting documentation.
- Seek Legal Assistance: If you’re not satisfied with the insurance company’s response or if they are not providing a valid explanation for the denial, it may be time to seek legal assistance. An experienced boating accident attorney can review your policy, investigate the accident, and help you build a strong case to challenge the denial.

The Role of a Boating Accident Attorney

A boating accident attorney can play a crucial role in helping you navigate the complexities of a denied claim. Here’s how they can assist you:

Case Evaluation: An attorney can evaluate the merits of your claim and advise you on the best course of action.
Investigation: They can conduct a thorough investigation of the accident to gather evidence and determine liability.
Negotiation: An attorney can negotiate with the insurance company on your behalf to reach a fair settlement.
Litigation: If a settlement cannot be reached, an attorney can file a lawsuit and represent you in court.

Common Tactics Insurance Companies Use

Be aware of the tactics insurance companies sometimes employ to minimize or deny claims:

Delaying the claim process: Dragging out the investigation to frustrate you.
Requesting excessive documentation: Making it difficult for you to comply.
Downplaying your injuries or damages: Minimizing the extent of your losses.
Offering a low settlement: Hoping you’ll accept less than you deserve.
Misinterpreting policy language: Twisting the terms to deny coverage.

Understanding Maritime Law

Boating accidents often fall under maritime law, a complex body of federal law that governs navigable waters. Maritime law can be significantly different from state law, so it’s essential to work with an attorney who has experience in this area.

Bad Faith Insurance Practices

In some cases, an insurance company may act in bad faith when denying a claim. Bad faith occurs when an insurer unreasonably denies a valid claim or fails to properly investigate a claim. If you believe your insurance company has acted in bad faith, you may be able to sue them for damages beyond the policy limits.

Preventing Future Claim Denials

While you can’t always prevent an accident from happening, you can take steps to minimize the risk of a future claim denial:

Maintain Your Boat: Keep your boat in good working condition and maintain detailed maintenance records.
Obey Boating Laws: Follow all boating laws and regulations, and operate your boat safely.
Get Boating Safety Instruction: Complete a boating safety course to learn how to operate a boat safely and avoid accidents.
Report Accidents Promptly: Report any accidents to the insurance company as soon as possible.
Be Honest and Accurate: Provide honest and accurate information when applying for insurance and filing claims.
Review Your Policy Regularly: Review your insurance policy annually to ensure it meets your needs and that you understand the coverage.

Don’t Navigate This Alone

Dealing with a denied boating accident claim can be overwhelming. By understanding your rights, taking the necessary steps, and seeking legal assistance when needed, you can increase your chances of a successful outcome. Don’t let a denied claim leave you stranded – fight for the compensation you deserve.