Insurers Seek to Void Marine Policy After Yacht Crash Off California Coast

A group of specialty insurers is petitioning a California federal court to void a marine insurance policy following a yacht collision earlier this year. The complaint, filed on August 27, 2025, in the Southern District of California, names Maverick Investments, LLC as the defendant and seeks a declaration that the policy covering the vessel MAVERICK never took effect due to noncompliance with key contractual terms.

The policy, which was active from December 1, 2024, through December 1, 2025, included strict requirements such as a fire extinguisher warranty and a recommendations warranty. According to the insurers—Accelerant Specialty, Hadron Specialty, Palomar Excess and Surplus Lines, Texas Insurance Company, and Lloyd’s Syndicates—Maverick failed to ensure the vessel’s fire suppression system was certified, weighed, or recharged by a licensed third-party professional. The insurers further claim Maverick did not complete repairs recommended in a pre-policy survey, nor did they provide written certification before the alleged March 15, 2025 collision with the RV LOKAHI.

The complaint also references material misrepresentations in the application process and invokes the maritime legal principle of uberrimae fidei, or ‘utmost good faith.’ The insurers argue these omissions and breaches void the policy from inception and relieve them of any duty to defend or indemnify the insured.

The case remains in early stages, and Maverick Investments, LLC is expected to contest the claims. However, the dispute serves as a cautionary reminder to marine insurers and insureds alike: full compliance with warranties and disclosures is crucial to preserving coverage under specialty policies.