Boat owners should take time to understand exactly what their insurance covers before heading out or putting their vessel into lay-up, advises specialist marine insurer Admiral Marine, following a review of its claims data that found around two-thirds of claims fell into categories the company classifies as preventable.
The claims review groups incidents including collisions, accidents, groundings and rudder damage, rig failure and flooding into categories considered preventable by Admiral Marine. Other categories, including storms, propeller damage, theft, lightning, fire and other causes were classified as beyond the client’s control.
While careful preparation and maintenance can help reduce some risks, Admiral Marine says it is also important for owners to understand the terms of their individual policy. Boat insurance should not be assumed to be an ‘all risks’ policy, and cover may be subject to exclusions, agreed cruising areas and conditions relating to how or when a vessel is used.
Issues can arise when an owner’s expectations do not match the cover they have purchased. For example, an owner may not realise that a planned passage falls outside the agreed cruising area, or that using a vessel during a specified lay-up period may be restricted by their policy. The precise effect depends on the wording and conditions of the policy in question.
Richard Chitty, Claims Manager at Admiral Marine says: “Insurance is there to provide protection when something goes wrong, but it is important that owners understand the cover they have in place before they need to rely on it. We encourage boat owners to read their policy, pay particular attention to exclusions and restrictions, and check that their cruising plans and intended use are covered. If circumstances or plans change, speak to your insurer or broker rather than making assumptions.”
Admiral Marine recommends that owners review their policy before the start of a season, before undertaking a voyage that may change their cruising area, and before laying up or using a vessel outside its usual pattern. Owners should also tell their insurer or broker about relevant changes in their circumstances and ask for clarification whenever a policy term is unclear.
The claims analysis provides a reminder that some types of damage may be reduced through preparation and maintenance. Understanding the insurance arrangements in place is a separate but equally important step in ensuring owners know what their policy does and does not cover.
