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Indiana Yacht Owner Sued by Marine Insurers Over Engine Claim on 50-Foot Sailing Catamaran “Guanahani”
Accelerant Specialty Insurance Company and Texas Insurance Company have filed a declaratory judgment action in the U.S. District Court for the Southern District of Florida, seeking to void a marine insurance policy issued to Indiana-based yacht owner Guanahani, LLC. The complaint, filed under Case No. 0:25-cv-61710, arises from a February 2025 engine failure aboard the 50-foot sailing yacht Guanahani, which occurred off the coast of Key Biscayne, Florida.
Marine Insurance Lawsuit Alleges Engine Failure Not Covered Under Yacht Policy for Sailing Catamaran Guanahani
According to the insurers’ complaint, the incident involved an unexpected engine shutdown on the Guanahani, a 2019 Privilege catamaran powered by twin 370hp Yanmar diesel engines. The policy provided $970,000 in hull coverage subject to a $19,400 deductible. However, following a post-loss inspection conducted by a marine surveyor retained by the insurers, the cause of damage was attributed to mechanical failure—not an external accidental event such as a collision or grounding. Under the terms of the insurance policy, damage to mechanical or electrical parts is explicitly excluded unless caused by an accidental external event, which the insurers claim did not occur in this case.
Insurance Companies Seek to Void Policy Over Alleged Misrepresentations by Yacht Owner and Operator
In addition to the disputed cause of loss, the plaintiffs allege that Guanahani, LLC made material misrepresentations during the insurance application process. Specifically, the insurers claim that the vessel’s named operator, David Erin Massey, had a prior DUI conviction that was not disclosed in the application. The insurers argue that had they known about the operator’s history, they would have either declined coverage or altered the policy terms.
The complaint invokes the maritime doctrine of uberrimae fidei—a duty of utmost good faith in marine insurance contracts—and alleges that Guanahani’s nondisclosure voids the policy from inception. The suit also references general condition XIII of the insurance policy, which renders the agreement null and void in the event of a material misrepresentation.
Lawsuit Cites Breach of Post-Loss Duties and Tampering with Key Evidence After Engine Failure
The insurers also assert that Guanahani failed to comply with multiple post-loss obligations under the policy. After the engine incident, the yacht’s fuel tanks were allegedly cleaned and polished before the insurers could inspect or test the samples. Guanahani reportedly failed to preserve the fuel for testing and did not inform the insurers of any testing conducted, potentially depriving them of critical evidence related to the cause of the engine failure. The insurers claim this lack of cooperation materially prejudiced their ability to evaluate the claim.
Marine Insurers Seek Declaratory Judgment That No Coverage Is Owed for Yacht Engine Damage
The plaintiffs have brought five counts seeking declaratory relief: (1) violation of the duty of uberrimae fidei, (2) breach of general conditions in the policy, (3) breach of post-loss cooperation clauses, (4) application of the policy’s mechanical failure exclusion, and (5) lack of an accidental external event triggering coverage.
The insurers are asking the court to declare the policy void and to rule that they have no duty to defend or indemnify Guanahani, LLC for the incident.
Boat and Yacht Owners Must Fully Disclose Operator Histories and Preserve Evidence in Marine Claims
Yacht owners filing claims under marine insurance policies must carefully comply with disclosure requirements at the time of application and must follow strict post-incident procedures, including preserving evidence and cooperating with insurers. Failure to do so may result in denial of coverage—even for significant property losses. If you are involved in a marine insurance dispute, consult an experienced maritime insurance attorney to understand your legal rights.
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Disclaimer: Our firm does not represent any party in this case and is not involved in the litigation. The information provided is a summary of allegations based on publicly available court filings. We make no representations about the truth of these allegations, are not commenting on the merits of the case, and are not predicting any outcome.