I was at the sandbar, had four beers, and decided to head back at sunset. I missed a channel marker and t-boned a center console. The police breathalyzed me—I blew a 0.09. My insurance company sent a letter yesterday: “Coverage denied due to Illegal Acts Exclusion.” I am now being sued personally for $250,000 in medical bills.
Key Takeaways
- Illegal Acts Exclusion: Most marine policies explicitly exclude coverage for any loss that occurs while the vessel is operated by someone engaged in a criminal act (BUI).
- The “Innocent Victim” Clause: Some better policies might cover the liability to the other boater (the victim) up to the state minimums, but they will deny the payout for your boat repairs.
- Defense Costs: If the insurer denies the claim based on the exclusion, they also deny your legal defense. You are paying for your own lawyer in both criminal and civil court.
- Federal Offense: BUI is a federal crime if on navigable waters (Coast Guard jurisdiction). It triggers massive fines and potential jail time.
The “Why” (The Trap)
The trap is “Criminal vs. Negligent.”
Insurance covers stupidity (Negligence). It does not cover Crime.
While a car insurance policy often pays out for DUI accidents (because they are mandated by state law to protect victims), boat insurance is less regulated. Many yacht policies have a “Zero Tolerance” clause for drugs and alcohol.
The Investigation (I Read the Fine Print)
I checked the alcohol clauses for 2026.
Markel (Jackline Policy)
- Clause: strict exclusion for operation while impaired.
- Outcome: They will likely deny the hull claim immediately.
Geico Marine
- Clause: Excludes loss caused by “dishonest or illegal acts.”
- Outcome: Liability coverage may persist to protect the innocent party, but they will subrogate (sue) you to get the money back.
Global Marine
- Clause: Charter policies are even stricter. Any alcohol by the captain voids the policy instantly.
Comparison Table
| Coverage Type | Sober Accident | BUI Accident |
| Hull Damage (Your Boat) | Covered | Denied |
| Liability (Their Boat/Injury) | Covered | Denied / Restricted |
| Legal Defense | Covered | Denied |
| Medical Payments (You) | Covered | Denied |
Step-by-Step Action Plan
- Silence is Golden: Do not admit to drinking to the insurance adjuster on the recorded line. Let the police report speak for itself.
- Hire a Maritime Attorney: You need a lawyer who understands Admiralty Law, not just a traffic lawyer. The liability limitation act might help limit your financial exposure to the value of the vessel, even in BUI cases (Limitation of Liability Act of 1851), though it’s a long shot.
- Read the “Exclusions” Page: Look for “Operating under the influence.” If it’s there, prepare for bankruptcy.
- [IMAGE: Screenshot of a policy exclusion page highlighting the ‘Illegal Acts’ section]
FAQ
Will my umbrella policy save me?
No. Umbrella policies follow the underlying policy. If the boat policy excludes BUI, the umbrella excludes it too.
What if I was anchored?
BUI laws usually apply to “operating” the vessel. If you were sound asleep at anchor, you might have a defense against the “operating” charge.