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Florida Yacht Company Sues ION Insurance and World Insurance Over Denied Coverage for Partial Sinking of M/Y Bella Vita
Canelli Yachts USA LLC, a Florida-based yacht company, has filed a maritime insurance lawsuit against World Insurance Associates LLC and ION Insurance Company, Inc. in the Southern District of Florida. The lawsuit, filed under Case No. 1:25-cv-23211, alleges that the insurers wrongfully denied coverage for a partial sinking of Canelli’s 43-foot motor yacht, M/Y Bella Vita, which suffered extensive damage on October 28–29, 2024.
Yacht Owner Claims ION Insurance Denied Valid Claim After Bella Vita’s Partial Sinking
According to the complaint, the incident occurred while M/Y Bella Vita was transiting from Haulover Marina to Cracker Boy Marina, with an overnight stop at Lake Park Marina. On October 28, 2024, the vessel experienced a power failure and required assistance from TowBoatUS. After being towed to Lake Park Marina, the vessel partially sank overnight. The cause of the flooding was later identified as a defective hose clamp connected to a thru-hull fitting, which allowed water to enter the vessel rapidly.
The lawsuit states that Canelli promptly filed a claim under its marine insurance policy with ION (Policy No. EW1007175), which was procured through World Insurance. The policy, valued at $850,000, covers losses caused by latent defects, including partial sinkings. Despite submitting the required documentation, repair estimates, and proof of loss, Canelli alleges that ION failed to conduct a timely and thorough investigation and ultimately denied coverage in April 2025, without directly communicating with the policyholder.
Broker World Insurance Accused of Misrepresentation and Breach of Fiduciary Duty
In addition to its claims against ION, Canelli is suing World Insurance Associates, LLC, its insurance broker, for breach of fiduciary duty. The complaint alleges that World misrepresented ION as a superior “American” carrier, while failing to disclose that ION is a surplus lines insurer with fewer regulatory protections and potential limitations on claims. Canelli claims it relied on World’s expertise and representations when purchasing the policy, unaware of the risks associated with surplus lines coverage.
The lawsuit contends that World failed to provide adequate information about alternative coverage options and misled Canelli about the quality and reliability of ION’s coverage, depriving the yacht company of the opportunity to secure a more reputable marine insurer.
Canelli Alleges Breach of Contract and Improper Claim Handling by ION
The complaint includes a breach of contract claim against ION, alleging that the insurer violated the terms of the marine policy by denying coverage for a clearly covered loss. Canelli asserts that ION failed to properly investigate the claim, delayed communications, and refused to reimburse covered post-loss expenses, including the cost of obtaining multiple repair estimates. The lawsuit emphasizes that both Freedom Yacht Services and Foster Yacht Services concluded that the partial sinking constituted a constructive total loss of M/Y Bella Vita.
Plaintiff Seeks Full Policy Payout, Consequential Damages, and Attorneys’ Fees
Canelli Yachts USA LLC is seeking declaratory relief confirming that the loss is covered under the policy, as well as monetary damages for breach of contract and fiduciary duty. The company requests full payment of the $850,000 policy limit, reimbursement of post-loss expenses, consequential damages arising from claim delays, and attorneys’ fees. The lawsuit also asks the court to hold both ION and World Insurance liable for their respective roles in the claim denial and misrepresentation of coverage.
Contact a Maritime Insurance Dispute Lawyer if Your Claim Was Wrongfully Denied
Marine insurance disputes, particularly involving vessel sinkings or partial losses, often require aggressive legal representation to hold insurers accountable for wrongful denials. If your claim for yacht or marine vessel damage has been delayed or denied, you may have legal recourse under maritime and contract law. Contact our experienced maritime insurance attorneys to evaluate your case and pursue the compensation you deserve.
Contact us now to speak with a yacht insurance dispute lawyer.