Search
 
Expert Opinion

Understanding the limitations of shipowners’ liability

Under certain circumstances, a boat owner may limit its liability following an accident on navigable waters.

By Stephen F. White | February 06, 2019 at 12:00 AM
Limiting shipowner liability. The intent of the limitation of liability law was to allow vessel operators who accept great risks to escape unlimited liability, which could put them out of business. (Photo: Shutterstock)

Claims against vessel owners arising from recent maritime tragedies have focused greater attention upon the defense raised under the Shipowners’ Limitation of Liability Act (46 U.S.C. §30501 – 30512). Such claims are asserted not only against the owners of large seagoing vessels, but also against owners of smaller craft such as yachts, duck boats and water shuttles.

Recent tragedies in which Limitation of Liability was invoked by owners include the 2018 duck boat accident near Branson, Missouri (17 deaths); the 2010 duck boat accident in Philadelphia (2 deaths); and the 2007 water shuttle accident in Baltimore (5 deaths). Limitation of liability actions have also been filed by the vessel owners in such famous tragedies as the sinking of the Titanic and following the Deepwater Horizon disaster.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

 

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.