Most of you know I specialize in marine insurance. As a practical exercise in understanding marine insurance, I have a part of my presentation I call the ÔÇ£4 points of doomÔÇØ:
A boat owner gets a phone call that his boat just exploded and sank; there is damage to the dock and 2 surrounding boats, about 50 gallons of fuel is leaking from the boat, and the marina manager is telling you are responsible for removing the sunken vessel.
Look at the recent headlines from here in Seattle:
ÔÇ£December 31, 2011- 50-foot yachts destroyed in 2-alarm fire at Edmonds Marina. Two 50-foot motor yachts were destroyed in a spectacular two-alarm fire at the Edmonds Marina early Saturday morning. Damage to both yachts and the dock is expected to total more than $600,000.ÔÇØ
ÔÇ£January 31, 2012- A 40-foot boat that exploded at a marina on Washington's Olympic Peninsula Tuesday evening broke windows, inflicted shrapnel-type damage on other nearby vessels and seriously injured a 78-year-old man, firefighters said.ÔÇØ
1 month. 3 boats. Including the cleanup costs, damage to other vessels, etc- well over $1,000,000 in damages. Bet these owners thought the same thing too many boat owners thought:
ÔÇ£That can never happen to me.ÔÇØ
Let me tell you, marine losses happen all the time, to all types of folks- rich and not so rich, megayacht owner and runabout owner, power and sail. The bigger question should be:
ÔÇ£How does my policy cover and protect me?ÔÇØ
Let me be blunt- if your vessel insurance policy if bundled up with your homeowners policy, IÔÇÖll bet that you coverage is inadequate at best. Odds are that the policy is no more than a glorified auto policy, and it does not address marine specific areas of concern like pollution, salvage/wreck removal, coverage for hired workers, and more.
Today is the closing day of the Seattle Boat show. Thousands of people attended the show, getting all the latest and greatest gear for the upcoming boating season. When was the last time you took the same enthusiasm and time to make sure your vessel insurance is correct for your boating needs?
Some of you will experience a marine loss this year; whether a total loss or a partial loss, the worst time to find out how your insurance covers you is at that time of loss. You need to find out what type of coverage you have as a regular part of your pre-season checklist- and the premium cost should be secondary to ensuring you have the right coverage. Here are your marching orders:
1) Read your policy (because nobody ever does)
2) Get a highlighter, and highlight the parts that confuse you. An insurance policy is written by legal beagles, and is not meant to be understood by mere mortals.
3) Call your agent. Ask him/her if you are covered for things like agreed value, pollution, salvage, Jones Act (hired workers), permissive use, mechanical breakdown, etc.
4) When the agent tells you ÔÇ£yes, you are covered, break out the policy and have him/her SHOW you where the coverage is outlined in the policy wording.
See you on the water!
A boat owner gets a phone call that his boat just exploded and sank; there is damage to the dock and 2 surrounding boats, about 50 gallons of fuel is leaking from the boat, and the marina manager is telling you are responsible for removing the sunken vessel.
Look at the recent headlines from here in Seattle:
ÔÇ£December 31, 2011- 50-foot yachts destroyed in 2-alarm fire at Edmonds Marina. Two 50-foot motor yachts were destroyed in a spectacular two-alarm fire at the Edmonds Marina early Saturday morning. Damage to both yachts and the dock is expected to total more than $600,000.ÔÇØ
ÔÇ£January 31, 2012- A 40-foot boat that exploded at a marina on Washington's Olympic Peninsula Tuesday evening broke windows, inflicted shrapnel-type damage on other nearby vessels and seriously injured a 78-year-old man, firefighters said.ÔÇØ
1 month. 3 boats. Including the cleanup costs, damage to other vessels, etc- well over $1,000,000 in damages. Bet these owners thought the same thing too many boat owners thought:
ÔÇ£That can never happen to me.ÔÇØ
Let me tell you, marine losses happen all the time, to all types of folks- rich and not so rich, megayacht owner and runabout owner, power and sail. The bigger question should be:
ÔÇ£How does my policy cover and protect me?ÔÇØ
Let me be blunt- if your vessel insurance policy if bundled up with your homeowners policy, IÔÇÖll bet that you coverage is inadequate at best. Odds are that the policy is no more than a glorified auto policy, and it does not address marine specific areas of concern like pollution, salvage/wreck removal, coverage for hired workers, and more.
Today is the closing day of the Seattle Boat show. Thousands of people attended the show, getting all the latest and greatest gear for the upcoming boating season. When was the last time you took the same enthusiasm and time to make sure your vessel insurance is correct for your boating needs?
Some of you will experience a marine loss this year; whether a total loss or a partial loss, the worst time to find out how your insurance covers you is at that time of loss. You need to find out what type of coverage you have as a regular part of your pre-season checklist- and the premium cost should be secondary to ensuring you have the right coverage. Here are your marching orders:
1) Read your policy (because nobody ever does)
2) Get a highlighter, and highlight the parts that confuse you. An insurance policy is written by legal beagles, and is not meant to be understood by mere mortals.
3) Call your agent. Ask him/her if you are covered for things like agreed value, pollution, salvage, Jones Act (hired workers), permissive use, mechanical breakdown, etc.
4) When the agent tells you ÔÇ£yes, you are covered, break out the policy and have him/her SHOW you where the coverage is outlined in the policy wording.
See you on the water!
very expensive meds that I have to keep in various places all over town (ie: school, hospital, truck, boat) got stolen from it, along with my I-touch and I-pod hidden in the glove box. The thieves missed the fanny packs with more meds in it on the seat backs. When I called State Farm the lady stated "oh I am sorry we dont cover that in your truck, thats personal items"...WTF, whats truck insurance for?. yeah not... its considered HOUSEHOLD GOODS. well, since we are renting from my family owned complex.. its RENTERS insurance which we didn't have.. well, I went right down and got a policy..
opssnickering)
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