Your clients probably think the consequences of a loss involving their boat is at best a headache, and at worst a hit to the wallet plus hours lost on the water.  What exactly are consequential losses?  How do they relate to boat insurance, and why is it important to boaters?  Here’s a simple example that explains just why consequential losses matter to your customers.

A comprehensive boat insurance policy will likely protect your customer’s boat against theft, vandalism, collision on the water or while being towed, damage while stored, and liability protection.  These are common standard perils for which coverage is provided by SkiSafe and most carriers in the industry.  However, it is also standard for your customer’s insurance to exclude coverage for wear and tear or mechanical breakdown.

Your clients can’t use their boat every day because of work, family obligations, the weather, and other distractions.  Imagine what happens if they’re away from the boat and a cooling hose ruptures or the shift cable cracks, which in turn causes the boat to sink.  Look at this diagram of the inside of a common engine.

diagram

If the raw water cooling hose connected to the engine becomes dry, cracked, and brittle, then it can suddenly burst.  The same kind of thing can happen to a car – but a car won’t sink to the ocean floor.  If this happens to your customer’s boat while on the water, it may flood and cause the boat to sink.

This kind of loss that results from a mechanical failure is not typically covered under a boat insurance policy.  However, if the policy secured for your customer includes coverage for consequential losses, she will be covered for the damage that results from the sinking.  This is especially important because it can easily happen when your customer is away from the boat and unable to take any protective measures.

There are two things that can be done to guard against this type of loss.  First, your customer can regularly inspect and replace all hoses in a timely fashion.  Second, when reviewing your customer’s boat insurance, make sure that the policy includes coverage for consequential losses.  If not, contact a SkiSafe underwriter today to discuss adding this coverage.  If they have this feature, you’re already a step ahead!

To learn more contact SkiSafe at 800.225.6520 or quote online by selecting the Watercraft button on Tower Hill’s RPM home page.


 

About SkiSafe. For over 20 years, SkiSafe has been providing coverage for more than 400,000 boats and jet skis nationwide. Watercraft is SkiSafe’s specialty — from jet skis to yachts, and sailboats to tournament ski and bass boats. In 2014, Tower Hill partnered with SkiSafe to offer watercraft insurance to your Florida customers.

 

Chad Warren

About Chad Warren

Underwriting Manager
SkiSafe Insurance

A lifelong boater who grew up as a mate on his parents’ charter boat on beautiful Lake Michigan before serving as a US Coast Guard Quartermaster and Federal Law Enforcement Officer, Chad has navigated more lakes and inlets than most of us can imagine. From the Great Lakes to the Atlantic and Pacific Oceans, Bering Sea, Panama Canal, Caribbean and countless other parts unknown, Chad’s navigable territory when not at the office is now primarily found in New York’s coastal waters. Chad has been assisting agents and their boating customers around the country as SkiSafe’s Underwriting Manager for over 15 years. Chad has been able to counsel our SkiSafe partners not only from the perspective of a seasoned insurance professional, but as a lifelong boater with a 100-Ton Master License with the Towing Endorsement. Chad has already volunteered to open SkiSafe’s first seaside office, but he’s too valuable to send out just yet.