Ask a Maritime Attorney: What is my liability?

Question:             I operate a boat rental business in California, and a customer who claimed to be a maritime attorney advised me that if a jet ski hits and injures someone, the owner of the jet ski may limit his liability to the value of the jet ski under a 19th century law that is still on the books. If this is true, then why do I (or anyone with a small vessel) need a million-dollar (or more) liability insurance amount?  Are we overpaying for a risk that does not exist? Answer I will first note that the advice given by our reader’s attorney was irresponsible. It was a very broad statement, and like anything else in the law, nothing is automatic even if the general concept has merit. Our reader and his attorney are referring to the Limitation of Liability Act (Title 46 U.S. Code, section 30305). The act dates back to the 19th century, when cargo ships would disappear on voyages that lasted several years. During the time that the ships were away from their home port, the owner had very little – if any – control over the operation of the ship. A legal concept developed to limit the owner’s...