Insurer Seeks to Void Yacht Policy After Wake Injury Incident in North Carolina
Accelerant seeks a declaratory judgment that it has no duty to defend or indemnify Mann in connection with a personal injury and property damage lawsuit filed against him in North Carolina state court.
According to the complaint:
- Mann’s vessel allegedly created a dangerous wake that injured Traci Rivenbark and damaged her boat and dock.
- Mann waited nearly two years before reporting the incident to Accelerant on August 20, 2024.
- The incident occurred south of Cape Hatteras, in violation of the policy’s navigational warranty, which required the vessel to only navigate north of Cape Hatteras between July 1 and November 1.
Declaratory Action Alleges Breach of Navigational Warranty and Late Notice of Claim by Insured Gordon Mann
Case Name: Accelerant Specialty Insurance Co. v. Gordon Dale Mann
Case Number: 9:25-cv-80480
Jurisdiction: U.S. District Court, Southern District of Florida (Admiralty Jurisdiction)
Filing Date: April 18, 2025
Plaintiff: Accelerant Specialty Insurance Company (domestic surplus lines insurer)
Defendant: Gordon Dale Mann, Florida resident
Policy at Issue: Marine Liability Policy No. CSRYP/211923 (April 1, 2022 – April 1, 2023)
Incident Date: September 4, 2022
Location: Intracoastal Waterway, Pender County, North Carolina
Vessel: 1988 63’ Viking Gulfstar
Key Allegations
Accelerant asserts two independent bases for denying coverage and voiding the policy:
Count I – Breach of Navigational Warranty
- The marine policy expressly warranted the vessel would only navigate north of Cape Hatteras between July 1 and November 1.
- Pender County, NC (latitude 34.3106 N) is located south of Cape Hatteras (latitude 35.223333 N).
- Federal maritime law recognizes that breach of a navigational warranty voids the policy from inception, even if the breach is unrelated to the cause of loss.
Count II – Failure to Provide Timely Notice
- The policy required written notice within 30 days of any claim or incident.
- Mann did not notify Accelerant until August 2024—nearly 2 years after the accident.
- Under New York law, which governs the policy in absence of entrenched admiralty precedent, failure to provide timely notice is a complete defense to coverage—even without insurer prejudice.
Accelerant therefore asks the court to declare the policy void ab initio and to confirm it owes no duty to defend or indemnify Mann in connection with the injury lawsuit pending in Pender County Superior Court.
Legal Implications for Marine Policyholders
This case highlights two recurring—and strictly enforced—concepts in maritime insurance law:
- Navigational Warranties Are Absolute
Courts routinely uphold navigational limits in yacht and vessel insurance. Even minor deviations, regardless of their relationship to the incident, can void coverage entirely. - Strict Notice Requirements
In marine policies governed by New York law, prompt notice is a condition precedent. A delay of several months, let alone years, often precludes recovery—even where the insurer is not prejudiced.
Policyholders and brokers must be mindful of geographic limitations and reporting deadlines. Even where injury litigation arises long after an incident, courts are unlikely to excuse delayed notice or unauthorized navigation zones.
Contact Us Today
If you’re a vessel owner facing a coverage denial or an insurer dealing with delayed claims or warranty breaches, understanding the nuances of maritime insurance law is critical. Navigational clauses and notice conditions are enforced with little tolerance for deviation.
Consult a maritime insurance attorney to review your policy obligations and protect your rights. Declaratory actions can shape liability exposure well before a trial ever begins.
