What happens when you borrow your friend’s boat and you have an accident in the boat and a passenger is injured?
The first question is whether the actual owner has specific insurance over the ‘watercraft’. Did that owner pay an additional premium for the extra insurance? That would be a helpful factor.
The second question is whether you had the owner’s consent. If yes, then the owner’s policy should cover the accident.
The third question is whether you (the driver) have homeowner’s insurance? If you do, and it is a conventional broad form policy, you are probably covered for such an event, even though you are away from your home in your friend’s boat.
The fourth question is, which insurer pays first and which insurer covers any ‘excess’ claim (in the event the first policy is not rich enough to cover the full loss)? The Ontario Court of Appeal in TD General Insurance v. Intact Insurance 2019 ONCA 5, decided that both insurers are ‘primary’ and both share the liability equally.
