Pontoon & Deck Boat Magazine – March 2018

Last month I discussed risk

management and the four basic

ways to manage risk: avoid, reduce,

contain and transfer. But it occurred

to me that really a person should look

at what kind of claim will they have,

before they decide which form of risk

management they choose. How do you

know? It’s basically impossible to know

what will happen and what type of loss

you will have.

Years ago my wife and I were riding

to the big biker gathering in Sturgis and

she was stung by a bee that flew between

us. After we stopped and treated her for

that, she was hit with a rock in the thigh

from a passing truck. Ouch, but that

wasn’t all. The next thing was a grouse

flying across the road hitting her in the

leg and arm. Boy, she really panicked

when she saw the deer crossing sign.

Anyway, even though we tried to

react, sometimes things just happen and

you have to accept the consequences.

Basically that’s risk management. You

protect yourself, take precautions, react

and sometimes you still have an accident

or claim.

In another situation, one of my

aircraft customers taxied his aircraft

into a jet. He had the maximum one

million dollar property damage liability

policy he could get. But his propeller

apparently chewed up about 1.6 million

dollars of jet aircraft. Another big ouch!

Being able to plan ahead is great, but

even with the maximum available, you

just never know.

Okay I realize we are talking about

pontoons, but the concept is the same.

We don’t know what we will run into or

what will hit us. And if you think a high

dollar loss can’t happen to you, what if

you lose control and run into the side of

a $500,000 sport cruiser parked at the

docks. Might seem impossible, but you

would be surprised at what happens.

Anyway, it might be a good time to go

over some of the more commons claims

turned in to insurance companies to help

you decide.

Down Below

One marine insurance claim

department I contacted felt that a big

portion of their claims are the result of

hitting a submerged object. Submerged

objects will result in damage to lower

units, propellers, keels, pontoons or

hulls. Nice things about pontoons, you

usually don’t hear about one sinking too

often.

Using information from marine

insurance claim departments and

organizations such as Boat US, a few of

the other common claims I discovered

are theft of assorted boat equipment and

parts (portable or permanent) such as out

drives, electronics, outboard motors and

trailers. Leaving the trailer unattended

in the parking lot or the cockpit

uncovered is an invitation for a thief.

Parting Ways

Snatching the whole boat is another

big claim. While there are cases of theft

from a slip or mooring, trailer-based

boats are the ones that are usually

turned in on a claim. Boats, like cars,

are often stripped and the parts sold a

piece at a time because taking the parts

off the boat makes it harder to find.

Collisions with anything are bad.

Collisions with pilings, docks, and other

boats can be deadly. Collisions are not

the same as hitting submerged items.

Collisions are just that, colliding with

something else either moving (another

boat) or stationary (like a dock).

Grounding or running aground is bad,

but most claim departments indicate that

often more damage is caused by trying

to accelerate through the sand, mud or

rocks than by just stopping and waiting

for help.

Let’s Bolt

One of the less common but still

important claims mentioned is lightning

strikes, which usually “fry” the

electronics and put holes in fiberglass

and starts fires.

Another is damage from docks. Wind,

weather, and hurricanes can cause

chafing, damage to rub rails and hull

joints and even rip cleats out of the

decks. Get in a habit of moving the boat

to a safe harbor or new neighborhood

when bad weather is imminent. Learn

to tie up securely and use high-quality

dock lines and fenders. Last year

was bad for the hurricane states. The

underwriters are already increasing rates

and reducing or eliminating territories

and coverages.

Of course, the list above is not

inclusive. There are all sorts of

variations along with different levels

of each type of claim. Even if you

take all the precautions, accidents

do happen. Make sure you have the

risk management plan (and the right

coverage) for your pontoon.

Staying In ’Toon Boating tips and observations with Sky Smith

Common

Insurance Claims

By Sky Smith

54 Pontoon^ & Deck Boat March^2018 http://www.pdbmagazine.com