Ah, summertime. Time to kick back and head to the beach. There are all sorts of temptations while on vacation; cold drinks, rare steaks, and all manner of transportation. It seems that wherever you go these days, you can rent almost anything; scooters, bikes, boats, and my new favorites… jet skis and golf carts. I am sure that most of you give little, if any, thought to the insurance implications of items like this, but you should stop and think about the exposures before jumping into, or onto, your new ride.
There are always two exposures that worry us. First, and this one is easy, is what happens if the scooter, jet ski, or golf cart get damaged or stolen? Did you buy the extra coverage like the LDW on a rental car? Do you know if there is a deductible?
The other things that worries me is the liability. What happens if you injure someone or damage something while operating the unit? There is an absolute coverage exclusion under your home insurance for any liability for a “motorized land conveyance.” (The same limitations apply to boats and jet skis.) Just to be clear, an absolute exclusion means there is NO coverage. You will get to pay the attorney to defend you and you will get to pay the judgement if you loose.
Now that I have become the “wet blanket” for the summer time party, just be sure you know what you are doing and the potential consequences.