North Carolina Adjuster Practice Exam

What type of injury would typically be covered under a Yacht Policy's liability coverage?

1. Injury to a passenger on the yacht

2. Injury to a harbor worker while loading supplies onto the yacht

3. Injury due to a collision with another vessel

4. Injury sustained while navigating the yacht

The correct answer is: Injury to a harbor worker while loading supplies onto the yacht

In the context of a Yacht Policy's liability coverage, the coverage typically extends to injuries arising from operations related to the yacht, which includes injuries to third parties who are not passengers on the yacht itself. Injury to a harbor worker while loading supplies onto the yacht would generally be covered under the yacht’s liability coverage, as this scenario involves an individual who is performing an activity in direct relation to the yacht's operations. Since the yacht owner or operator could potentially be held responsible for the safety of employees or contractors working around the yacht, the liability coverage is designed to protect against claims for injuries sustained by these individuals. In contrast, the other scenarios present different dynamics regarding liability. Injury to a passenger on the yacht typically involves different coverage considerations, as it might fall under medical coverage or personal liability aspects specific to passengers. Injury due to a collision with another vessel would generally be addressed under the vessels' hull coverage or specific navigational insurance rather than liability coverage itself. Lastly, injury sustained while navigating the yacht is more about personal injury than liability to others, which means it may not be covered in the same manner as harm incurred by non-passengers participating in yacht-related activities.