Minimizing Liability in Towing Contracts: How Low Can You Go?
Contrary to popular belief, a contract of marine towage does not create a bailment. Case law has long established that he owner of the boat being towed is not a bailor, and the towboat operator is not a bailee.
Warranties of Seaworthiness in Marine Insurance
Whether a boatowner knows it or not, there are two occasions upon which he will warrant to his marine insurer that his vessel and all of its appurtenances are in tight, staunch, and seaworthy condition. No words need to be spoken and nothing needs to be written in order for these warranties to be conveyed. The warranties of seaworthiness are silently implied into every hull insurance policy by longstanding principles of marine insurance law. It is important for boatowners to understand these warranties, the manner in which they are conveyed, and the moments they attach, since the penalty for breaching a warranty of seaworthiness is loss of coverage and avoidance of insurance claims.
Understanding the Differences Between Towing and Salvage
Every year, hundreds of boaters discover first-hand the difference between contract towing and salvage. In many cases, the discovery is made when the surprised boat owner receives a bill for a salvage reward as opposed to a bill for towing services.