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Board approves marine charter policy after debate over insurance; one abstention recorded
Summary
Kitsap Transit’s board approved a marine charter policy on May 6 after extended discussion over insurance protections for chartering parties; the board recorded one abstention.
KITSAP COUNTY, Wash. — Kitsap Transit’s Board of Commissioners voted May 6 to adopt a marine charter policy that allows the agency’s vessels to be chartered for special purposes, but the item generated extended discussion about insurance and liability protections.
Mayor Erickson raised concerns that special events and charters typically require an insurance binder, saying, “every special event that's held in every jurisdiction I know requires an insurance binder for the event” and arguing the agency should require similar protections for vessel charters. Erickson asked whether the draft policy had been reviewed by the agency’s insurance carriers.
Nut graf: Board members debated whether Kitsap Transit’s existing protection and indemnity (P&I) coverage is sufficient or whether chartering parties should carry a primary policy and sign indemnification. Finance Director Paul Schooners told the board the agency’s marine protection and indemnity coverage “will stand in,” and said staff had raised the question with the broker; the broker was on medical leave and had not yet provided a formal written response. Schooners added staff could require chartering parties to sign a defend‑and‑hold‑harmless agreement to make the party’s policy primary.
Commissioner Root moved adoption of Resolution 25‑30 approving the marine charter policy; Council Member Moriwaki seconded. The resolution passed with one abstention. A board member asked staff to follow up with the insurance broker and to return with clarification; several members said the charter document itself contains an indemnification clause but does not currently require separate insurance coverage from the chartering party.
Discussion vs. decision: The transcript records substantive discussion about risk allocation and insurance; the decision was to adopt the policy while directing staff to seek confirmation from the insurance broker and, if necessary, include insurance requirements or adjust charter fees to obtain coverage.
Ending: Staff said they would work with insurance counsel and the broker to clarify whether additional contractual insurance requirements are needed and will report back to the board.
