Florida Insurance Companies File Lawsuit Seeking to Deny Coverage for Haulover Sandbar Boating Injury Involving Azimut Yacht
Accelerant Specialty Insurance Company and Texas Insurance Company have filed a declaratory judgment action in the Southern District of Florida, seeking a court ruling that they have no duty to defend or indemnify Milk World USA LLC and its principal Axel Lema in connection with an injury that occurred during a December 30, 2023 boating incident at the Haulover Sandbar in Miami.
Filed under Case No. 0:25-cv-61986-WPD, the federal lawsuit centers on a marine insurance policy issued for a 1998 42-foot Azimut motor yacht and whether the injury described in a related state court lawsuit falls within the policy’s coverage.
Insurers Argue Injury Did Not Arise from Operation or Ownership of Insured Azimut Yacht
According to the federal complaint, the insurers issued a policy providing up to $1 million in third-party liability coverage for the insured vessel owned by Milk World USA LLC. The incident in question occurred while a guest, Maria Murillo, was aboard a different vessel anchored nearby, a yacht named Set on Fire, owned by a third party.
Murillo alleges in her underlying state lawsuit that Axel Lema, the owner of the insured vessel, fell from Set on Fire’s flybridge and, in doing so, caused her to fall and suffer injuries. She names both the insured vessel and Lema as defendants, despite the injury occurring on a separate boat.
The insurers contend the claim does not trigger coverage because Murillo’s injuries were not caused by the operation or ownership of the insured vessel. The complaint argues that Lema’s alleged fall did not involve any inherent risk of the Azimut yacht or its operation, and that the accident occurred on another vessel entirely.
Declaratory Lawsuit Also Alleges Yacht Owner Failed to Give Timely Notice of the Incident
In addition to arguing that the policy’s coverage grant does not apply, Accelerant and Texas Insurance allege that Lema and Milk World failed to provide timely written notice of the incident. The policy requires notice within 30 days of any loss. However, the insurers assert that they did not receive notice of the December 30, 2023 incident until March 13, 2024—more than two months later.
Under New York law, which governs the interpretation of the marine policy, timely notice is considered a condition precedent to coverage, and late notice can bar claims regardless of whether the insurer was prejudiced. Based on this, the insurers seek a declaration that no coverage is owed due to late notice alone.
Federal Complaint Seeks to Avoid Duty to Defend or Indemnify in Ongoing State Lawsuit
Maria Murillo’s underlying lawsuit, filed in Miami-Dade Circuit Court under Case No. 2024-014249-CA-01, remains pending. In that suit, she is pursuing damages against multiple parties, including Lema, Milk World, the insured Azimut yacht, the third-party vessel Set on Fire, and its owner.
The insurance companies now ask the federal court to declare that they owe no duty to defend or indemnify Milk World or Lema under the marine insurance policy for the claims arising from Murillo’s accident.
Marine Insurance Coverage Disputes Often Turn on “Causal Nexus” to Vessel Operation
The case highlights a key concept in marine insurance litigation: whether an injury arises from the “ownership or operation” of an insured vessel. Courts interpreting such provisions often apply a strict test that requires a direct causal connection to the vessel’s use or risks inherent to it—not merely incidental involvement.
Here, the insurers argue that since the accident occurred on a different vessel, and the insured vessel neither caused nor contributed to the injury in a direct way, coverage does not apply.
Injured in a Florida Boating Accident? Consult a Maritime Injury Attorney Today
Boating injuries, especially those occurring at popular gathering spots like the Haulover Sandbar, frequently give rise to complex litigation involving multiple vessels, parties, and insurance companies. If you were hurt in a boating accident or are involved in a marine insurance dispute, you may need experienced maritime legal counsel to protect your rights.
Contact our firm to speak with a maritime injury lawyer familiar with Florida boating law and federal admiralty coverage disputes.
Disclaimer: Our firm does not represent the plaintiffs or defendants 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.
