CLIENTS - We strongly urge verifying the type of insurance supplied by your repossession agents/ brokerage companies. Many "part-time" repossession companies, who are often brokers seeking to buy bank repossessions at wholesale less their agreed commission, will submit insurance certificates showing $1,000,000 in general liability coverage. Although this appears as sufficient coverage, quite often this is only a MOLL (Marine Operators Legal Liability) policy. This is a standard policy in the marine industry but does not fully cover repossessed collateral. Unless an additional policy covering dealer inventory has been purchased, your boats are not covered from natural disasters, theft or ANY damage not resulting directly from marine operator negligence or error (dropped from a travel lift, wrecked during sea trial, etc.). This additional "inventory" policy is a requirement brokerage firms that sell non-repossessed boats do not need to carry. They require each individual owner to maintain their insurance policy throughout the sale. A repossessed boat, most likely, has a canceled policy due to lack of payment, leaving the responsibility of insuring up to the agent or the bank.
LAB Marine carries both MOLL & Inventory insurance policies. We currently maintain general liability policies for $1,000,000 and $2,000,000 per occurrence. We have a $5,000,000 excess liability, also known as an umbrella, policy and a $1,000,000 error and omissions policy which includes wrongful repossessions. We carry our standard policies at levels far exceeding industry standards and have purchased several policies many companies do not carry because, for us, this is a full time commitment. It is our business to know, in detail, the type of coverage, policies, laws and licenses necessary to ensure LAB Marine and our clients are always protected. We do not cut corners. A copy of our certificate of insurance and licenses are available for download at your convenience. Should you have any questions please contact us directly as we would be glad to answer them.