$66 Million Boat Death Suit Spurs Insurer Dispute Over Adjuster Duties

Clear Blue Insurance Co. and Clear Blue Specialty Insurance Co. have filed suit against Yachtinsure Services Inc. in North Carolina federal court. The insurers allege Yachtinsure failed to fulfill its contractual obligations to adjust claims exceeding $150,000, including one linked to a fatal 2021 Florida boat accident. According to the complaint, Yachtinsure had historically adjusted high-value claims and sought approval from Clear Blue for settlements over $150,000. However, in October 2024, the adjuster allegedly refused to handle such claims, citing the claim’s value as justification.

The Claims at Issue

The fatal boat accident in question led to a $66,030,000 consent judgment against Clear Blue policyholder Karen Nissim, who subsequently sued Yachtinsure and Clear Blue in Florida state court. Nissim’s suit claims the denial of her coverage violated Florida’s "anti-technical" statute, which prohibits insurers from denying claims due to technicalities unrelated to the risk assumed by the insurer. Clear Blue asserts that despite the claim’s value, Yachtinsure remained obligated to adjust the claim under the 2020 general agency agreement, which outlined Yachtinsure’s duties to underwrite, bind, service, and adjust marine and boat insurance policies.

Breach of Contract Allegations

Clear Blue contends that Yachtinsure’s refusal to defend and indemnify the insurers in the Florida litigation constitutes a breach of contract. In September 2024, Clear Blue demanded Yachtinsure fulfill its contractual duties, but Yachtinsure allegedly declined. The insurers now seek court orders compelling Yachtinsure to indemnify and reimburse all litigation-related losses, including legal fees, and affirming Yachtinsure’s duty to adjust all claims, regardless of value. According to the insurers, attempts at contractually required mediation were unsuccessful despite their good faith efforts.

Legal Representation and Case Details

Clear Blue Insurance Co. and Clear Blue Specialty Insurance Co. are represented by Moore & Van Allen PLLC, with attorneys Mark A. Nebrig, Fielding E. Huseth, Raquel Macgregor Pearkes, and Sofie T. Oldroyd. Counsel for Yachtinsure has not been disclosed. The case is filed as Clear Blue Insurance Co. et al. v. Yachtinsure Services Inc., case number 3:25-cv-00109, in the U.S. District Court for the Western District of North Carolina.

This legal battle underscores the critical importance of clear contractual obligations in insurance claim adjustments and the significant financial stakes tied to high-value liability claims.