Frequently Asked Questions About Marine Insurance
What is an insurance broker?
An insurance broker works for you: to obtain insurance coverage options from various Underwriters and present them to you in a clear manner. Your broker will take all the relevant information from you that is required to provide Underwriters with a clear indication of the risk, and will forward their terms on to you for your consideration. Your broker will discuss the coverage and limits on the policy with you, in language you can understand. Your insurance broker is always there for you to help answer any questions you may have during the initial insurance process and afterwards.
What is the difference between Agreed Value / Stated Amount / All Risks / Replacement Cost Policies and Actual Cash Value policies?
The main difference between the two coverage options is how a claim is settled following a loss. With Stated Amount / Replacement Cost Policy coverage, the amount paid following a total loss is the amount shown on your Declaration page, with no charge for depreciation. Partial loss claims are settled on a new-for-old basis, so the replacement parts would be of new quality, replacing the necessary damaged parts with no additional charge to you. Actual Cash Value policies are settled on a depreciated basis, determining the settled amount given the value of the vessel and/or the damaged item at the time of the loss.
What is covered in my policy?
Our policies provide coverage for All Risks hull and machinery damage (including fire, theft and vandalism) and Protection & Indemnity (P&I) liability claims that arise from the use, ownership and operation of your watercraft. Underwriters also offer additional coverage for — Personal Effects, Towing, Fishing Gear, Loss of Use, Accidental Pollution discharge, Salvage and Recovery, Wreck Removal and your tender and outboard — all at lower deductibles.
Am I covered for everything with Agreed Value / Stated Amount / All Risks / Replacement Cost Policies?
This coverage is the finest policy available, however, there are certain exclusions that are not covered under these wordings. Typical broad exclusions include dishonest, intentional and illegal acts as well as fraud, wars, seizures and nuclear radiation. The marine exclusions include wear-and-tear, deterioration, corrosion, osmosis, electrolysis, or design defects. We recommend to all our clients that you take time to read through your policy, as our staff can provide answers to any questions you may have regarding exclusions.
How can I reduce my hull premium ?
There are a number of credits available to reduce your premiums. Reviewing your insurance program with a qualified broker, who is also a Marine Insurance Specialist, is the first step to getting the best value. Cost-saving items include increasing the deductible, limiting navigation, extending the lay-up period, boating safety courses, and having navigation and safety devices on board your vessel.
Am I covered for a Hurricane ?
Yes. There are no exclusions for hurricanes. However, the companies have reduced their exposure to hurricanes by limiting navigation in hurricane-prone areas. Make sure you have not breached the navigational warranty of your policy to avoid a lapse in coverage.
Why and when are surveys required ?
Surveys protect your investment by identifying safety and maintenance items, at the same time providing Underwriters with a clear indication of the current condition and market value. An independent marine surveyor works on your behalf to identify and suggest solutions to keep your vessel in top condition. Surveying a vessel is a standard practice for the used boat buyer, and is mandatory for older vessels. Most Underwriters require a marine survey to be done every five years, and every three for an offshore vessel. Most offshore / bluewater Underwriters require a rigging inspection to be done at the same time.
What happens in a claim ?
If there is a loss to your vessel you must contact our office as promptly as possible. Our staff will take down the primary details in order to inform Underwriters of the damage. Underwriters will assign an adjuster, who will contact you and help begin the process of settling your claim promptly. Remember, you are responsible to obtain repair estimates and to choose where you wish the vessel to be repaired. The repairs are completed to YOUR satisfaction, under your direction and control, not the insurance company’s. The adjuster is there to represent Underwriters, but also to help and assist you with any concerns you may have regarding the repairs. By working with the assistance of your broker and utilising the experience of the adjuster, our claims handling is extremely quick and easy.
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Dolphin Insurance Services Inc.
#20-601 W. Cordova St.
Vancouver, B.C.
V6B 1G1
Canada
Telephone (604) 261-9200