Club Owned Boat?

I am looking at a boat for a scuba club I am, I already have a post about what iboaters think about it. I would like know if anyone has any experience in logistics, drama, and legality of a club owned boat. I know many people in my club won't even think about the idea. I would like to see with research if it would be a good idea. Would it allow us to do more dive trips more frequently at a cheaper cost, while giving us more flexibility to location and time? We do wreck hunting and the club has discovered a lost wreck. We also like to dive about 2.5 hours away in the thousand islands as it has many more wrecks than the south shore of Lake Ontario. Some members like the other idea, some older guys don't like it.

I was thinking of having a separate member fee for people who want to captain the boat, which would cover a majority of the yearly costs of the boat, i.e. maintenance, insurance, dock (or storage), etc. Captains would be required 1-2 years in club. Also they need 3 years of boating experience or 1 year of boating + USGC safety course. We could help train a captain to help them make their 1 year in the dive boat. Fuel use would be calculated by a fuel meter and would be split between people who use the boat. Minor Damages would be over looked, major damage would be covered by insurance via captains fee. This boat isn't pretty, she will be dinged up and that is consider the cost of doing business. Being a captain gives you access to the key, trailer, and schedule for the boat.

I am contacting a crew clubs, dive clubs that own boats, and yacht clubs on how they manage club owned boats and other resources.

-Hostage

Re: Club Owned Boat?

To me, it's like buying a rental car. You never know who drove it, how, and what happened to it in the process. Nor do you know if it was properly serviced.

My personal opinion: I wouldn't do it. But that's me.

HTH,
Mark

Re: Club Owned Boat?

Texasmark said:

To me, it's like buying a rental car. You never know who drove it, how, and what happened to it in the process. Nor do you know if it was properly serviced.

My personal opinion: I wouldn't do it. But that's me.

HTH,
Mark

Click to expand...

You could also say the same to any used car. The boat is a former state police search/rescue dive boat. A state policeman on our club checked and found out to his surprise that they take care of boats, they store them inside during winter, etc.

Re: Club Owned Boat?

At my hunt club (12 members) we have small boats that belong to the club (12' and 14'; 6 hp and 15 hp). no issue,. titled in the club, which is a C corp and has its own liability insurance.

then 7 members wanted a larger boat so we formed another C corp to buy the boat (would do an LLC now I think). The buy-in was the cost to buy and get the boat on the water; the annual cost is repairs, maintenance (virtually none) and insurance/taxes/registration. The boat is beat to crap and looks worse than a commercial crabber's but we don't care--and that's essential. Get a maintenance free boat and forgive your brother's bumps and scrapes.

Insurance is the big issue. We were lucky that one member is an insurance agent and he was able to place it; they usually want less than 3 "owners" and a new boat (ours was at the time). Legally there is one owner, the corporation, but they wanted to approve the financials and history of each of the the 7. The main reason for insurance is the liability, of course, and you have to have enough coverage to reach up under each member's umbrella coverage (you would be an idiot not to have both).

So first look at the corporate structure of the dive club to see if you can title it there and insure it there. If not everyone wants to use it, charge a user fee for those who do to cover its expenses. But get the insurance nailed down first. You cannot put it in one member's name and under his personal insurance.

Re: Club Owned Boat?

Cookin - Good info!

Do you guys have boat insurance of just general liability for the club? Also how much do you guys pay? I am worried this might make of brake the idea.

Re: Club Owned Boat?

the club's general liability covers the small boats, just like most homeowner's does. But there's a lot to the insurance package so our cost wouldn't tell you anything.

the insurance the 7 of us pay on the 19' boat is about $900/year, mostly liability.

Re: Club Owned Boat?

What carrier do you have?