Insurance Brokers came into existence because the insurance of ships (hulls and cargoes) emerged slowly as the part-time occupation of a large and disorganised group of private individuals, some with specialised knowledge such as merchants, ship owners and bankers, but including a wide range of people whose only common characteristic was that they had capital to speculate and large profits were available for risk seekers during these enterprising times of discovery. The first insurance broker was a Marine insurance broker and came into being as a response to a need at the time.

This miscellaneous group of individuals included, at one time or another, such diverse figures as Samuel Pepys, the Admiralty civil servant and famous diarist, and Daniel Defoe, the celebrated journalist and novelist, but no doubt there were hundreds if not thousands of others who, in the gambling spirit of the age, were willing to put their signature to, that is to underwrite, a list of people sharing a risk.

Because of the hazardous nature of marine insurance, no one would gamble more than a fraction of his (or her) fortune on any particular vessel, and so someone had to run round the City to assemble a list of names to provide cover for each of the ships leaving port, the so called Lloyds List provided by an early bookies runner.

As Gibb writes in his Lloyds of London, the brokers were the fixed point in a floating market.

It was they who were the professionals, the full-time men who depended on insurance for their daily work and livelihoods, who kept recognised offices, knew the responsible underwriters and, through long experience, were best informed on the nature of marine risk.

Over the next 300 years of so until the present day, the evolution of insurance broking saw many ups and downs, but was characterised by three outstanding features: the growth, diversification and, most recently, amalgamation of insurance broker firms. Insurance products themselves have followed the insurance broker evolutionary path and likewise responded to the needs of the times.

How Mr Pepys would marvel at the way Insurance is now transacted everywhere across the Internet.

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Marine Insurance - The Oldest Profession

The protection of the company balance sheet and capital base from extremes in loss frequency and severity or aggregations is of critical importance to the viability of an insurer.

Reinsurance is a global business heavily intertwined with the trade, commerce and finance industries of most, if not every nation on earth.

Events of significance to, or which impact on the reinsurance industry will affect all insurers to some degree.

Recent events may combine to have a sizeable impact on 2009 reinsurance renewals.

Hurricanes Gustav & Ike

They did not have the same news profile as that attributed to Katrina and the subsequent flooding of New Orleans but, the most recent loss estimates suggest that Gustav & Ike will contribute significant claims to reinsurers. In particular, the oblique angle at which Gustav approached the Gulf Coast as it produced a greater than anticipated impact on the rather dense concentration of oil and gas facilities in that region.

Recently reported figures suggest a combined industry loss from Gustav and Ike in the US$20 - $25bn range (A$28 - 35bn). Losses of this magnitude will put pressure on many insurer and reinsurer margins.

Global Credit Crisis

The sub-prime mortgage problem in America has put the international banking industry in the spotlight. Some have failed and many forced to merge or seek funds from the State. The supply of credit has evaporated or become prohibitively expensive as inter-bank lending ground to a halt. In addition the dive in world share prices will bring ratings, valuation and capital adequacy pressures to many other companies across all market sectors.

Introduction Of more immediate concern to the Insurance Industry is the potential for capital to disappear or be re-directed away from reinsurance. In addition, poor investment decisions may have a profound impact on otherwise secure businesses and downgrades may result where ratings agencies are obliged to delve more fully into any affected company.

Impact on Reinsurance

Reinsurance cost pressures will develop due to:

• Reinsurer difficulties in sourcing new capital and/or an increased cost of capital.

• Capital Market demands for increased returns.

• Capacity restrictions.

• A flight to quality (of security) - cedants to reinsurers and vice versa.

• Reduced return on investments.

• Write-downs in value of investments.

Recent comment from reinsurers suggests an upward pressure on treaty pricing for the December 2008 renewal season with flow on effects to insurance contracts during 2009.

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Reinsurance Cost Pressures - 2009

The law governing the insurance industry historically grew up under the general law of contract and the doctrine of the common law, that is, decided on a case by case basis, as opposed to being regulated by a uniform codified system of legislation.

The marine insurance industry is regulated by the Marine Insurance Act 1906 under which insurance cover must be embodied in a written marine policy.

Most insurance policies will be effected through an agent who will often have authority to make the contract on behalf of the insurer.

Fundamental to insurance contracts is the general duty of disclosure by the insured. Such contracts are subject to the doctrine of utmost good faith. This means that not only does the proposer for insurance have the normal obligation of giving accurate answers to questions asked of him in the proposal form, but also that he must volunteer to the insurer every material fact known to the proposer, whether or not he has been asked to do so. The reason for this is that the insurer does not, indeed, cannot know of all the relevant details of the insured. The insured is the party in the position of knowledge and so is required to provide the utmost good faith when completing an insurance proposal form, providing all relevant information. Support for this is to be found in the leading case of Carter v Boehm (1766).

The test of materiality is that contained in Section 18 of the Marine Insurance Act 1906. This provides that a fact is material if it would influence the judgment of a prudent insurer in fixing the premium, or determining whether he will take the risk.

A breach by the insured of the duty of utmost good faith gives the insurer the right to avoid the policy from the start. This is the case even if the non-disclosed fact(s) are unrelated to the loss, thus leaving the insured without protection in the event of a claim.

This rather harsh doctrine was somewhat restricted by virtue of The Statement of Insurance Practice 1986 for non-business insurance, which provides that insurers will ask all necessary questions about matters which they have found generally to be material, and will not refuse to pay out on policies on the grounds ofnon-disclosure, if the undisclosed fact is one which the proposer could not reasonably have been expected to disclose.

MARINE INSURANCE IN PRACTICE:

In accordance with the provisions of the Marine Insurance Act 1906, which requires underwriters to indemnify the insured (to indemnify meaning to compensate for a loss actually suffered).

Once a claim has been made, if physical damage has been done to the boat, the underwriter will normally appoint a surveyor to inspect the damage and make recommendations for repairs. Although it is not unusual for a surveyor to try and do so, he is not authorised to give repair instructions to the boatyard; the yard is employed by the boat owner and it is from the owner that any directions must come. The function of the surveyor is merely to advise the underwriter in his dealings with the owner. If the surveyor approves the claim and agrees the estimate for repairs, it is for the brokers, acting on the underwriter’s instructions, to inform the owner and for the owner to give the go-ahead to the yard to carry out repairs. In all cases the owner should ensure that a full schedule of agreed works is prepared in advance, and insist that any additional items of work found to be necessary in the course of repair should not be dealt with until inspected and approved by the underwriter’s surveyor. Failure to obtain the surveyor’s approval will quite properly entitle the underwriter to refuse payment on any such extras.

On completion of the repair work, the owner will normally be required to settle the bills himself, with the underwriter only issuing one single payment on seeing the receipted invoices and a certificate of satisfaction signed by the owner. Where this may cause financial difficulties in cases where the sums involved are substantial, the best course of action to take is to arrange with insurers for them to pay the repairer direct which, quite often, insurers will be willing to do.

Where the underwriter has appointed his own surveyor, he will be asked to report his own satisfaction independently to the underwriter.

The insurance policy may also require the insured approve the repair works. This is not unusual and indeed is what happens with most other forms of insurance.

The boat insurance market is tiny compared to the car insurance market, indeed, the boat industry is much smaller than the car industry, it is a different animal altogether and one should try not to compare the two. There are generally no ‘approved repairers’ and the insured is more often than not able to decide for himself which boatyard he wishes to carry out the repairs to his boat.

Marine Insurance policies do not generally cover wear and tear – they cover perils of the sea – so if your boat sinks because its old and leaking you may not expect your insurers to indemnify you, however, if your boat sinks because of rough seas, a storm etc. then, despite the fact that it may have been a relatively old boat you may find that you are covered.

YOUR INSURANCE BROKER:

The duty owed by the insurance broker to his client (that’s you), is to act reasonably with regard to his client’s insurance needs. These will vary depending on what the broker should have known about you and what you should have told him. The broker may also, confusingly, have binding authority from the insurer, thus changing his role to that of agent of the insurer. Whilst this is a complex area of law, we do recommend that you establish the nature of the broker’s role before you proceed.

THE FINANCIAL SERVICES AUTHORITY:

Historically, insurance contracts have always been tipped in favour of insurers. However, as from 14 January 2005 the sale of insurance products are regulated by the Financial Services Authority and the FSA and the Financial Services & Markets Act 2000 aims to redress some of this unfair balance in favour of the customer.

The Financial Services Authority (FSA) is the independent watchdog set up by government under the Financial Services and Markets Act 2000 to regulate financial services in the UK, and protect the rights of retail customers. The FSA’s aims are to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness. Call: 0845 606 1234 or visit www.fsa.gov.uk for more information.

THE FINANCIAL OMBUDSMAN:

The Financial Ombudsman Service provides consumers with a free, independent service for resolving disputes with financial firms. The ombudsman service is completely independent with its job being to look at complaints impartially - and to make what it believes is a fair and balanced decision on the individual facts and circumstancesof each case. Call: 0845 080 1800 or visit www.financial-ombudsman.org.uk for more information.

THE UNFAIR TERMS IN CONSUMER CONTRACT REGULATIONS 1999:

The Regulations apply to terms in consumer contracts that are concluded between a consumer and a seller or supplier in a contract whose terms have not been individually negotiated and which, contrary to the requirement of good faith, causes a significant imbalance in the parties’ rights and obligations under the contract to the detriment of the consumer.

The Regulations give the FSA power to challenge firms that are using unfair terms. It can therefore protect consumers by preventing firms or other business from using or recommending terms that are unfair.

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Boat Insurance overview

In all cases the assured must remember that it is up to him to show that the damage or loss has arisen as the result of an insured risk, or at least that an insured risk was, on the balance of probabilities, the cause of the damage.

When damage occurs, or liability for salvage or to a third party is likely to arise, it is important to inform the insurers as soon as possible after the incident, even if it is not at the time envisaged that a claim need be made on the policy. In most cases this will mean informing the broker who will immediately notify the underwriter, and send the assured a claim form. Indeed many insurance policies contain a ‘claims co-operation clause’ which requires notice of a claim (including an intended claim) to be given by the insured to the insurer within a reasonable time. Recent case law has held that what is considered to be a reasonable time should be interpreted generously in favour of the insured, taking into account prejudice to the insurer. Shinedean Ltd v AXA Insurance UK Plc (2005).

THIRD PARTY INSURANCE AND MARINE LIMITATION:

Most boat policies provide an indemnity for property damage or personal injury caused to third parties up to a figure of £3,000,000. However this figure will be rarely approached, even if a bad accident is caused by the insured.

Although the limitation figures have been substantially increased, boat owners and insurers may still limit liability, even in respect of the negligent handling of a boat.

APPOINTMENT OF SURVEYORS (when is a surveyor appointed?):

Once a claim has been made, if the boat has sustained physical damage, the underwriter will usually appoint a surveyor to inspect the damage, make recommendations for repairs and report back to the underwriter on any circumstances which might entitle him to reject the claim.

The function of the surveyor is to advise the underwriter in his dealings with the owner. If the surveyor approves the claim and agrees the estimate for repairs, it is for the broker, acting on the underwriter’s instructions, to inform the owner, and for the owner to give the go-ahead to the yard to carry out repairs.

The owner should ensure that a fully agreed schedule of works is prepared in advance and agreed with the yard. This list should be enclosed with the express instruction that additional items of work found, should not be dealt with unless pre-approved by the underwriter’s surveyors and/or the owner.

DISPUTED CLAIMS:

Although most insurance claims will be negotiated and settled without a hitch, it occasionally arises that the insured, despite representations made on his behalf by the broker, is dissatisfied with the underwriter’s final decision.

Where a boat is insured by Lloyds, the file is referred to the Customer Complaints Department at Lloyd’s who will then initiate its own in-house investigation.

In the event of the action being supported by an internal enquiry, and the insured is still dissatisfied, the matter may still be referred to the Financial Ombudsman Service. The Financial Ombudsman is required to adopt an approach to insurance disputes that is fair and reasonable, in order to resolve the case on a common sense basis.

The Financial Ombudsman’s decision is binding upon the insurer with no right of appeal, whilst the insured is able to appeal the decision.

If the Financial Ombudsman rejects the claim, the only course of action will be to take the matter to the Court. In this case it is advised to go to an experienced marine insurance solicitor.

If an owner is able to show that the failure arises from an incompetent or careless act of the broker, then the general principles of professional negligence may be relied upon and legal action taken against the broker.

PAYMENT OF THE CLAIM:

A marine insurance claim is different in the sense that a policy is a contract of indemnity on which no payment need be made until the full measure of damage is known, and repairs and renewals have been carried out and paid for.

It is important to distinguish the separate stages in an insurance claim:

• notification to insurer
• survey by insurer
• negotiation if necessary leading to an agreement on what work will be paid for by insurer
• authorisation of work by insured
• execution of work by yard/repairer
• payment of yard bill by insured
• reimbursement by insurer on production of the receipted bill and satisfaction note.

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Insurance Claims

In order to make that informed decision its important to look at the different types of cover that might be offered. Also, it can help to understand the legal requirements, as this varies from one state to the next, with some requiring more cover than others.

Full Coverage (also known as all risk or comprehensive cover) is the widest form of insurance coverage. It provides cover for the vessel against accidental damage, theft, vandalism, fire, and collision, whether its on the water or laid-up ashore.

These all risk policies also include a liability section (also called Protection & Indemnity (P&I)). This section covers a boat owners legal obligations to a third party, such as damage to property or bodily injury. Cover is limited to the amounts stated in the policy.

Also look towards the potential restrictions and benefits that might be offered your way.

How is a claim settled in the event of a claim - is it ‘Actual cash value’ - the market value is determined by the condition & age of the vessel at the time of the loss. Or ‘Agreed Value’ - the sum insured is determined by the boat owner & underwriter at the time of taking out the policy, so in affect the insured value. This can make a considerable difference when it comes to settling a claim, so be certain to ask how the insurance policy operates.

Often insurance companies offer benefits or discounts. If having auto and boat insurance with the one company, this might result in 10 - 15% discount or more. And if the boat owner has competed a boat course or qualification this can result in a further discount. Remember to ask for these discount when getting the boat insurance quotes.

If a vessel is 10+ years of age, over a certain length or amateur built, a insurance company might ask that a survey report is carried out ashore prior to offering cover.

Is the navigational limits suited to where you intend on using the vessel. Also, if you decide on making a trip outside those limits at a later date, how is that going to affect the premium. Be sure to ask all relevant question at the time of the quotation so that there is no nasty surprises later on.

Restrictions that are seen often on marine boat insurance policies include - date restrictions, does the craft need to be laid-up at any time of the year. Also, are there restrictions on who can operate the vessel.

Its important that when seeking out boat insurance quotes it is tailored to suit your individual needs. This can have a dramatic effect on how a potential loss is handled. So, be certain that the right marine boat insurance is in place.

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Choosing the Right Marine Boat Insurance

Section 55 of The Marine Insurance Act 1906 provides that the insurer is liable for any loss proximately caused by a peril insured against, even though the loss would not have happened but for the misconduct of the master or crew. In the case of negligent or unskilful navigation, the Courts will normally hold that it should be payable.

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Lack of Due Diligence

For a valid contract to exist, it is necessary for the insured to have an insurable interest; in other words he should either be the owner, charterer, mortgagee of the boat or have some other beneficial interest.

The Marine Insurance Act 1906 defines an insurable interest as follows:

Every person has an insurable interest who is interested in a marine adventure.

A person is interested in a marine adventure where he stands in any legal or equitable relation to the adventure or to any insurable property at risk. In consequence of which, he may benefit by the safety or due arrival of insurable property, or may be prejudiced by its loss or damage, or may incur liability.

Section 7 of the Act provides that a contingent interest may be insurable. For example a purchase agreement may provide that the boat is at the seller’s risk until she has arrived at a port nominated by the buyer. In these circumstances the buyer will have no insurable interest in the boat during the voyage but does have an insurable contingent interest in the arrival.

WHAT IS INSURED VALUE?

The contract of insurance demands total disclosure by the insured of the relevant facts (and that may well extend to facts that may not appear to the insured to be obviously relevant). This applies as much to the value of the boat as to the other factors affecting the premium.

The insured should be careful neither to under-insure nor over insure the boat. Over-insurance (i.e. a proposed valuation over market value) will not invalidate the policy unless the underwriter can show that the valuation was so far in excess of the market value as to amount to a material representation.

When assessing the required value of personal effects to be carried abroad, it should be made clear to the insurers that the total payout in the event of the boat becoming a total loss, should include the full value of personal effects. Unless this is stipulated clearly at the time of the contract, the insurers will only pay up to the full value of the hull and gear as insured, and the owner may be compensated for only a small part of the personal effects he has lost.

THE PROPOSAL FORM:

When completing the proposal form, the owner must remember that any misrepresentation, or inadequate or false information, may entitle the insurers to deny all liability under the policy.

It is therefore vital to make a full declaration and to consider all aspects when completing the proposal form. Since the proposal form does not constitute a contractual offer, the proposer is in no way bound by completing a form.

A new owner would be wise to shop around the insurance market looking for the best quotation and policy terms. You should remember however, that you get what you pay for. While one broker or company may seem to be able to offer very much more attractive terms than another, it pays to examine the actual scope of the cover very carefully. This may vary considerably between companies.

It is worthwhile looking into:

• the company’s track record when it comes to prompt and full payment of claims;
• whether the underwriter is in the Financial Ombudsman Scheme;
• whether the underwriter comes within the jurisdiction of the British Courts.

Completion of the form will involve full particulars of the boat, her engines, designed speed, cruising waters to be covered, when and where she will be laid up and how.

The underwriters will also require particulars of the fire extinguishers provided, the value of the tender and liferaft, and of any other special equipment covered.

A cautious underwriter will also ask for particulars of the owner and his experience and qualifications, whether he will permit others to use the boat, and his previous insurance history.

PERIOD OF VALIDITY:

In the past, boats were generally kept in commission for between five and eight months in each year. The modern practice is to extend this period. Many of the headings in an insurance policy, do cover the whole twelve month period, but you should stipulate the period in commission and the period laid up.

You should immediately inform your brokers if there should be any change to these periods.

THIRD PARTY ONLY INSURANCE:

It is now compulsory to have third party insurance for boats on waters under British Waterways control, including the Rivers Severn and Trent and most of the country’s canals, under the authority of the British Waterways Act 1995.

In addition a number of private boatyards and moorings providers impose a third party insurance requirement.

BASIC PRINCIPLES OF MARINE INSURANCE:

Fortuity

For a claim to be paid, the insured must be able to point to an external accidental cause resulting in damage, be it a freak wave, an unusually and unexpectedly strong squall, flotsam in the water, or some breakage on the boat causing subsequent further damage.

If all the insured can do is to show a sunken hull or a lost rig with no evidence that it was the result of fortuity, then the underwriter will normally not be obliged to pay.

One particular area of difficulty is where a boat has sunk because a hose has perished, or a skin fitting has been left open and unconnected after the boat has been re-launched. Here again the underwriter will normally reject a claim on the grounds that the incident was not brought about by an external accident cause.

In such circumstances the broker will usually support the underwriter that the policy is not a “maintenance contract”, and that the loss is the direct result of the owner failing to renew fittings or rigging on his boat as it deteriorates with age.

THE TERMS OF THE POLICY:

The Unfair Terms in Consumer Contract Regulations 1999, requires all standard form consumer contracts (including insurance policies) to be written in a language comprehensible to the average person. As a result of this insurance companies have taken the opportunity to redraft their policies in more simple terms.

EXTENT OF COVER:

When comparing the numerous policies on the market, a diligent boat owner should satisfy himself that he is buying the cover he really requires.

Negligence of skipper and crew
Under the Marine Insurance Act 1906 an insurance claim must be paid, even if the incident was initially caused by the negligence of the skipper or crew unless the policy provides otherwise.

A number of new policies now specifically require the insured to act with diligence, or take care of the property, at all times. It is possible that the courts will uphold an underwriter’s rejection of a claim on the basis of the neglect to take care.

Since many claims are the result of carelessness or inattention by the owner skipper or crew, an underwriter will be entitled to reject such claims, if he is using a policy wording designed to give him that right.

Wear and Tear

The 1906 Act provides that the underwriter is not liable to pay for ordinary wear and tear. Furthermore, a number of new policies now contain provisions excluding claims resulting from “wear and tear” or words to that effect. Again it is now likely that the courts will uphold an underwriter’s rejection of a claim on that basis.

Most policies contain four main sections, all of which presuppose the boat is being used for private pleasure purposes only. The cover usually includes:

• Loss of, or damage by marine perils to, the craft insured, up to the value insured. The cover includes, amongst other things, sinking, stranding, fire, collision, theft of the boat, forcible entry, theft of the normal “boat” contents and fittings. Personal effects are not usually included unless specifically agreed. These may be covered by the owner’s Household Insurance
• Collision with other craft resulting in damage for which the insured owner may be legally liable. This includes damage to piers, wharves and jetties, etc. Removal of wreck also comes within this section.
• Any legal liability for injury or loss sustained by “guests” and “persons” abroad, excluding paid crew and any other person employed on the boat who should be insured separately under an Employers’ Liability Policy.
• The owner of the boat should make it clear to members of his crew that the boat’s policy will not cover their personal gear, and their household policy will not cover them for accidental loss or damage, unless this has been specifically insured by them.
• Salvage charges claimed by Salvors. Reasonable charges preventing losses are likely to be paid under most policies although this is not always the case.

Speedboats

It is usual for boats having a designed speed of 17 knots or more to be subject to higher premiums and special conditions.

Some companies impose particularly stringent conditions of use, mooring and storage on small fast boats, and the terms offered by different companies should be carefully compared.

TERRITORIAL LIMITS OF INSURANCE:

There are three main ranges or areas which, in descending order of cost to the owner, are as follows:

1. Full coastal and seagoing cruising within the home trade limits which cover all United Kingdom waters and Continental coast from Brest to Elbe. Some policies may include Continental inland waters as far south as Paris.

2. Coastal Cruising within ten miles of home port or permanent moorings.

3. Non-tidal waters of the United Kingdom.

Single voyages and special cruises are rated separately. The insurance policy should cover the boat whilst it is stored on land within the United Kingdom.
It goes without saying that any unusual risks which you are intending to incur should be properly insured and declared to the insurers.

You should also note that cruising through the inland waterways of Europe is not automatically covered in most policies, and therefore needs special mention on your proposal form or before you undertake such a cruise.

EXCESS:

As with any insurance, if the owner is prepared to bear a percentage of the loss of eg the first £250, his premium may be materially reduced.

VALUE INSURED:

It is important from year to year to settle the exact value of what you own and to agree a realistic value with the insurance company.

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Basic Principles of Insurance

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Racing Risks

• Third Party Liability - You should not consider going afloat without liability insurance, which will cover you if you cause damage to another boat or worse still cause injury. The industry standard provides a limit of £2,000,000 and should be sufficient to sail in the UK. Many Insurers now offer a policy providing £3,000,000 worth of cover.
• Racing Risks - Most policies will provide cover for racing as standard, but some insurers may charge you an additional premium. If you race without paying the additional premium you may not be covered.
• New-For-Old cover - This will replace damaged items with new, but check whether there is an age limit on your equipment. For instance if you were to break a ten year old mast, some companies would replace this with a new mast of equivalent specification, others would only pay out what they considered to be the mast’s value at the time of loss, leaving you to fund the difference.
• Policy Excess - You will be required to pay the first £x of any claim.
• Comprehensive Cover - will provide cover for your boat against accidental damage, theft, fire and vandalism.

Q. Do I need to use a specialist marine insurance company?
A. No - Many High Street Insurance Brokers will be able to arrange your insurance, but they may not have the necessary expertise to advise you correctly.

Q. How can I be sure the insurance company I choose is reliable?
A. Your policy is only as good as the service you receive if you have to submit a claim. Why not speak to your fellow sailors, for their comments regarding which insurers provide good (or bad) service to their clients.

With effect from 14th January 2005, it is a legal requirement that any company providing an insurance policy, must be authorised and regulated by the Financial Services Authority.

Q. Why do I need third party cover?
A. £2,000,000 Third Party Liability is usually compulsory if you are to sail in the UK and you should not consider sailing without this cover as a minimum. A policy providing third party liability, should cover you if you were to cause damage to property or injury to another person, with your boat.

Cover is normally provided for a named boat, and therefore another person sailing your boat, with your permission, would also be covered, however you must check your policy if you are unsure. It is unlikely that you are covered to sail any boat under this policy and if you are borrowing another boat, you should always check with a boat’s owner that you are insured to sail it.

Third party risks whilst in transit would be EXCLUDED as this is normally covered by your motor insurance policy.

Q. Should I expect a standard policy to cover me while I’m not sailing (ie, when my boat is sitting in the drive or while I’m travelling?)
A. Comprehensive policies should cover your boat against accidental damage, theft, fire and vandalism, whether in use or not; however there may be restrictions on your policy. Boats should be securely tied down, trailers locked and / or immobilised when not in use, and equipment stored beneath your cover or taken home after use, if possible. It is relatively common for mice, rats or other rodents to make nests in your sails if stored in your boat.

If they do, your sail will become eaten and stained. Not all insurance policies will cover this eventuality.

Q. Would my trolley and trailer be covered?
A. Most policies can be extended, by payment of an additional premium, to include these items. Claims would be limited to either the market value at the time of loss or the sum specified on the Policy Schedule whichever is the lesser amount. It may be a requirement of the policy that trailers are immobilised and / or locked when not in use.

Q. To what extend would my equipment be covered on a standard policy (ie, sails, spars etc)?
A. Some insurers will only pay claims based on a percentage of the new replacement cost of your mast spars or sails, dependant on its age, leaving you to fund the difference. Typically, insurance companies will only pay two thirds of the replacement price on equipment over three years old.

The Laser policy offered by Noble Marine will pay the full replacement cost of your hull, foils, mast, spars or sails, damaged beyond repair, irrespective of age. All you need to pay is your policy excess. Because of this, your boat can never be underinsured.

Q. Does it matter who is in charge of my boat?
A. The majority of insurance policies will allow anyone to sail your boat with your permission, however it would be prudent to check this first. If you receive money in return, i.e. the boat is being chartered or hired; this may invalidate your policy.

Q. What is legal protection?
A. Upon payment of an additional premium, some insurance policies can be extended to include legal representation if your boat is involved in a collision or other accident and you suffer financial loss or injury. If you are injured, it is even more important that you receive expert help so that any claim for damages is pursued quickly and efficiently.

Q. What about cover for sailing abroad?
A. This will vary, depending on the policy you have chosen. Always check with your insurance company before taking your boat abroad. Noble Marine’s clients automatically have cover for 30 days use in Europe each year. If your sailing takes you outside Europe for short periods of time, or your boat will be in Europe in excess of 30 days per annum, then it may be possible to extend the cover accordingly.

Q. What should I do in the event of a claim?
A. You should always submit your claim as soon as possible after an accident. After all, the faster you make the claim, the faster you can get back on the water.

Any incidences of theft or criminal damage should be reported to the police - remember that you’ll need the Crime Reference Number for the claim form.

You will be required to provide at least one estimate for the repairs, or a written quote for the replacement items if a repair is not possible. Your Insurer may ask to inspect any equipment damaged, before authorising its replacement.

Stolen boats should be listed by your insurance company, free of charge, on the new www.stolenboats.org.uk website.

Q. How quickly should I expect to have my claim sorted?
A. This will depend on which insurance company you use and their speed of response. It can also depend how quickly your repairer can provide a quotation and then carry out the necessary repairs. It is Noble Marine’s intention is to respond to you within two working days, advising how to proceed, so you’ll know exactly where you stand, and how soon you can expect to be back on the water.

All Laser Policies provided by Noble Marine include:

• £3,000,000 Third party liability for anyone using your boat with your permission. No excess is payable on third party only claims.
• Accidental damage, theft, fire and vandalism.
• Damage to the boat (and your trolley and trailer if specified on the policy) whilst in transit, but excluding third party liability in transit, as this should be covered by your vehicle’s policy.
• New for Old Cover - Your mast, boom, rigging and all sails are insured on a New-For-Old basis. If any of these items are lost, damaged beyond repair or stolen, we will pay the cost of new replacement item, less the policy excess. No deduction is made for depreciation.
• Full cover for Racing
• Comprehensive All Year Round Cover - 12 months cover for all inland and coastal waters of the U.K. and up to one month’s use in Europe. It may be possible, to extend this cover either for use outside Europe or for more than one month’s use within Europe.
• Cover for sails damaged by vermin

For more articles go to: Dinghy Insurance http://www.dingyinsurance.com/

Laser - Insurance Advice

It is becoming increasingly common for claims for rudders and tiller extensions, lost overboard during a capsize. The good news is that this is entirely preventable and cheap too! (only 51 pence from Laser Direct)

All new lasers are supplied with a Clevis Pin (shown to the right), however we have discovered that many Laser sailors either do not know what it’s for or forget to fit it when they go sailing.

Q. Why should I fit this clevis pin?
A. Apart from the obvious safety issue of trying to sail without a rudder, a new rudder and tiller will cost approximately £400. Yes you can claim on your insurance policy, but you’ll still be out of pocket by the cost of your policy excess and could incur future increases in your insurance premium.
You’ll also miss out on valuable sailing time and no-one has ever won a race without a rudder on their Laser.

Q. How do I fit it?
A. It’s very simple!. The pintle on your rudder has a small hole near the tip. Once the rudder has been attached to the boat in the usual way, the clevis pin can be inserted into the hole and the rudder then cannot fall off. See the photo below:

For more articles go to: Dinghy Insurance http://www.dingyinsurance.com/

Laser - Prevent Your Rudder Falling Off