The Mexican government requires boat liability coverage to be purchased through a Mexican domiciled insurance company. Because it has become so easy to cruise between the U.S. and Mexico, we sometimes forget each country has its own laws and customs to follow. Mexico's Napoleonic civil liability laws view liability much differently than in the U.S. When a liability loss occurs, it is important to have an insurance company appointed adjuster communicate on your behalf with the authorities immediately. Without it, you are subject to fines, arrest and your yacht maybe detained indefinitely until the situation is remedied.
One of the most important assets in a Boat or Yacht is the Crew. To have the right protection for them in a yacht insurance policy is a must. If a yacht owner pays a person to act as captain or help crew the vessel then the vessel owner will have legal obligations under the Jones Act and other federal acts protecting paid crew. Some policies include incidental crew liability coverage, many do not. A crew member compensated with airline tickets, hotel rooms, or money, may be considered paid crew entitling him/her to federal benefits under the law. In admiralty law, a vessel can be sued in rem (in place of) the vessel owner. Creating ownership entities, charter agreements between parties, etc. does not eliminate or transfer this exposure. Crew liability coverage is not expensive to obtain, but lack of crew liability coverage can be costly. Call a Novamar Insurance representative or your current agent and find out if you are properly covered BEFORE a crew injury occurs.