How Yacht Clubs Can Strengthen Volunteer & Officer Liability Protection

For many yacht clubs, the start of the year brings newly elected officers, refreshed committees, and full event calendars. It’s also when important governance decisions happen, from budgeting to policy updates. Unfortunately, what often gets overlooked is that these new changes can affect yacht club insurance policies.

It’s an easy thing for water enthusiasts to miss, but volunteers and board members can face personal liability tied to their decisions. That should lead to asking all of your yacht club clients a critical question: Do yacht club officers and volunteers have personal liability protection?

They may not. But if they don’t, you can suggest they get it.

While many yacht clubs carry general liability coverage, that alone may not fully protect the individuals who lead and support the organization. Reviewing yacht club insurance early in the year can help keep your clients’ coverage in sync with its governance responsibilities and operational realities.

Why Yacht Club Volunteers and Officers Face Personal Liability Risks

Yacht club officers and volunteers regularly make decisions that carry financial, operational, and reputational implications. These clubs may sound frivolous, as if they’re full of people who simply sail around in the water; however, there’s a lot of responsibility associated with yacht clubs. Board actions involving finances, membership discipline, safety policies, or event oversight can all trigger allegations of mismanagement or negligence.

Even when decisions are made in good faith, lawsuits often name individuals, not just the organization. Claims may arise from disputes over membership status, handling of club funds, injuries at regattas or social events, or disagreements tied to bylaws and governance practices.

For clubs that rely heavily on volunteer leadership, these risks can create hesitation among current officers and discourage future participation if personal exposure is not clearly addressed.

Does Yacht Club Insurance Automatically Protect Officers and Volunteers?

A common misconception is that general liability insurance automatically protects officers and volunteers from governance-related claims. In reality, general liability policies are designed primarily to address bodily injury and property damage claims involving third parties.

Claims alleging mismanagement, breach of duty, or improper decision-making may fall outside the scope of standard liability coverage. Defense costs, even for unfounded allegations, can be significant and personally stressful for volunteers.

Coverage gaps are more likely when policies are outdated, limits have not been revisited, or governance exposures have never been fully evaluated. These gaps often become apparent only after a claim is filed.

How Yacht Club Insurance Programs Can Strengthen Liability Protection

Specialized yacht club insurance programs are designed with nonprofit governance and volunteer leadership in mind. These programs are structured to address the unique exposures that arise from board service, committee work, and member-led activities.

Working with marine insurance specialists who understand yacht club operations helps coverage reflect how the club actually functions. You’ll want your club clients to review limits, endorsements, and governance exposures at the start of the year, especially following board transitions.

Start the Year by Protecting the People Behind the Club

Protecting volunteers and officers is a fundamental part of responsible yacht club management. Strong liability protection supports leadership continuity, encourages participation, and reinforces long-term stability.

You know that, but do your clients? People new to a yacht club or those who have become complacent may not be aware of all the risks. After all, not every yacht club member is an experienced veteran on the water; you may have instructors teaching students how to sail, and with that, possible trouble.

Partnering with a marine-focused specialist such as Merrimac Marine Insurance helps yacht clubs evaluate whether their insurance programs adequately protect the individuals who make the club run. And if you can give your clients that peace of mind, knowing they’re fully protected, they can enjoy their yacht club even more. 

About Merrimac Marine Insurance

At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ business and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.