Why Jet Ski Insurance is Different

Jet Ski Insurance is different in some ways to other types of boat insurance. As with all insurance you should be aware of what is being quoted to you in the form of cover. Personal Watercraft (PWC) or Jet Skis are very popular and are often seen around the coast not only at weekends but also on summer evenings. With the increase of these craft being used there is also an increase in the number of accidents. Collisions between jet skis and other boats happens on a regular basis. Many PWC users are new to boating and because these craft are fast over the water there is little time to avoid obstacles in their way. This is why it is important to insure your jet ski.

There are basically two forms of insurance cover, Comprehensive which provides against accidental damage, vandalism, fire and theft. As well as third party liability. The other is Third Party Liability which covers you if cause injury to other people or damage their property, for example their boat. Many places will not allow you to launch your Jet Ski, if you do not have at least 2,000,000 pounds Third Party Liability Insurance.

Jet Ski insurance differs from other boat insurance with regard to its theft cover. PWC are fairly easily stolen if they are left unsecured. So most policies will require that your Jet Ski is always under lock and key when not in use. Your insurance quote would normally be a lot less if you state your Jet Ski is stored in a locked garage, for instance. Anywhere that is well away from the possibility of thieves is the best place to keep your PWC. Be clear as to what your policy covers, before you agree the cover.

Another difference with this type of cover is the need to list all the possible users of the Jet Ski. All will need to be at least 16 years of age and some policies may ask for a minimum level of experience or certificate of proficiency.

If you have an accident or your PWC is stolen or damaged it is necessary for the police to be informed of the incident. If a repair is required, at least one estimate is usually needed. Sometimes a Loss Adjuster or Surveyor will visit to assess the damage. So keep everything as it was at the time of the incident and do not be tempted to fix it yourself before the claim is settled.

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Why You Need Jet Ski Insurance

Some of the latest water toys have performance that was unheard of just a decade ago. Zero to 60 miles an hour on the water in under 8-seconds, try it once and all you can say is wow. Some of the latest jet boats can go even faster and that is just insane as you are skipping over the cresting waves hanging on for your dear life and if you have a passenger you'll feel a death grip of fear and excitement, but have you ever considered what would happen if they fall off the back during one of these rocket accelerations?

What if you make a mistake or a boat runs over the top of you? You might live and then decide you'd rather be dead, still the medical bills will be out of control, as our health care system is quite broken. Between the paramedics on the water to the airlift to the hospital, you are looking at $20,000 or more before you even hit the hospital emergency room and it just keeps getting more expensive from there. It's no laughing matter when you get the bill either.

But, what if you are not the one that gets hurt? What if one of your friends or a friend of one of your kids is the one that ends up in the hospital, well, there is a really good chance no matter how good of friends you are there will be a lawsuit. If you do not have insurance, you may find yourself and your family completely bankrupt just because you wanted to save a little money on insurance premiums for your water craft. Please be thinking here, it is serious.

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Vessel & Rig Construction Insurance Options - What You Must Know

Builder's All Risk (BAR):

What is it? BAR coverage is first-party coverage which is essentially an all risk property policy, plus liability and protection and indemnity (P&I) extensions to it.

Who is to be included within the Named Assureds? The parties to be included within the Named Assured Clause include Builder, Sub-Contractors, Owners, Lenders if applicable, and other parties with insurable interests if applicable

Who is to have subrogation rights against them waived? All parties with whom the Named Assureds have agreed in their negotiations, in either a written or verbal contract, to waive the rights of subrogation should benefit from waiver of subrogation. Usually, Manufacturers of major equipment are not amongst the parties who receive the benefit of this waiver of subrogation; instead, they are held accountable for their product and uphold their warranties provided to the shipyard and are prepared to allow recourse against them for failure or defects in their product / equipment.

What is the period? We recommend that BAR coverage is in place during the entire course of the vessel's / rig's construction; i.e., that coverage commence upon contract signing, remain in place during design and engineering phase, throughout construction, and cease upon delivery to owner, be it ex-Yard or at final Site following a transit.

What is the Sum Insured? This sum is usually specified in the construction contract between Builder and Owner, and should include the estimated Final Contract Value (FCV) plus the Owner-Furnished Equipment (OFE) [plus it can include the value of the incoming hull in the event of a conversion].

The inclusion of an Escalation Clause allows for coverage up to a certain percentage above the Estimated Total Sum Insured, the standard provision being 25% escalation.

In theory, the Builder's All Risk Underwriters reserve their capacity to ensure that they can pay four times (4x) the limit multiplied by the escalation provision. With an escalation provision of 25%, this means that Underwriters would require capacity to pay a claim of 500% of the Estimated Sum Insured, or 125% four times, i.e., once for physical damage, once for collision liability, once for protection & indemnity, and finally once for sue & labor expenses. We say "in theory" because in practical application, Underwriters would likely come to a point of ceasing to pay sue & labor charges and instead pay the full amount of the physical damage / replacement costs.

An example wherein each coverage section is used is this:

During construction, an oily rag falls into the engine room sparking a fire which burns out of control and burns the lines mooring the vessel to the dock. The vessel breaks free from her moorings, and then collides with another vessel at an adjacent shipyard which causes damages in the hulls of both vessels. Then, the insured vessel keeps on floating away out of control. The shipyard personnel quickly hire a nearby tug in an attempt to slow the vessel and get in close enough proximity to fight the fire. The fire is not brought under control and the vessel eventually sinks in a shipping channel. What is recoverable under a broad Builder's Risk policy?

First party physical damage to be recoverable under the All Risk main section Damage to the other vessel at the adjacent shipyard to be recoverable under the Collision Liability section Wreck removal costs to be recoverable under the P&I section Sue & Labor costs incurred by the hire of the tug boat and any fire fighting expenses to be recoverable under the Sue & Labor section What are the Situation / places of coverage? We recommend that the Situation is territorial coverage which includes the movement of material and equipment between yards and various contractors' yards. Additionally, we recommend ensuring the adequate distance that will be required during sea trials is specifically expressed within the coverage. (This is usually 250NM.)

If required, coverage can include items to become part of the vessel / rig under construction while in storage at Suppliers' warehouses - usually those in relatively close proximity to the shipyard or else those specifically declared to Underwriters.

Coverage for Owner-Furnished Equipment (OFE) usually commences under the BAR section from the point whereby a Named Assured inspects and accepts delivery of same at the port near the relevant shipyard (either on land or at sea).

What comprises the Interest that is covered? We recommend that all contract works that are to comprise the new construction are included within the covered Interest. This includes all Contract Works of the Shipyard plus Sub-Contractors in respect of the construction in all its phases, including design, engineering, procurement, strike steel, keel-laying, fabrication, construction, dry-docking, undocking, installation of equipment, fitting out, supply of all materials pre-commissioning, testing, commissioning, sea trials and all works until delivery of the unit.

What are the parts of coverage usually afforded under BAR coverage?

a. Property All Risk - Subject to specific terms, conditions & exclusions, marine builder's risk insurance (BAR) covers the builder / owner (others with an insurable interest - as specified in the policy) of a vessel / rig under construction against physical loss of, or damage to, the vessel / rig caused and discovered during the period of insurance. We recommend that any restrictions be removed; common ones in standard policies include those for earthquake, volcanic eruption, faulty design, and faulty welds.

b. Collision Liability - Sums paid by the respective Yard to any other person(s) arising out of the Yard's legal liability to pay sums for the following damages, as consequence of any vessel the Yard is working on coming into collision with any other vessel:

Loss or damage to any other vessel or property thereon Delay to, or loss of, use of any other vessel or property thereon General average, salvage of, salvage under contract of, any such other vessel or property thereon. c. Protection & Indemnity (P&I) -

Sums paid by Yard to any other party arising out of Yard's legal liability to pay sums for the following damages, as a consequence of an accident or occurrence during the policy period:

Loss or damage to any fixed, movable, property or any other thing or interest whatsoever Any attempted or actual raising, removal, destruction of any fixed movable object or property or other thing, including the wreck of a vessel, or any neglect to raise, remove or destroy same Liability assumed by the Yard under contracts of customary towage for purpose of entering or leaving the port or maneuvering within a port Loss of life, personal injury, illness, and payments made for life salvage. d. Sue & Labor - Sums paid for the following expenses, as a consequence of an occurrence during the policy period, incurred in attempts to minimize recoverable loss:

In case of any loss or misfortune, it is the duty of the Assured and their servants and agents to take such measures as may be reasonable for the purpose of averting or minimizing a loss which would be recoverable under this insurance. Subject to the provisions of this clause, the Underwriters will contribute to charges properly and reasonably incurred by the Assured their servants or agents for such measures. General average, salvage charges, collision defense or attack costs and costs incurred by the Assured in avoiding, minimizing or contesting liability. Measures taken by the Assured or the Underwriters with the object of saving, protecting or recovering the subject-matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party. What else should be considered / looked at with BAR policy?

Deductibles - Are they at levels that the Assureds can comfortably absorb? Do they apply per occurrence and/or in the aggregate? Complete, detailed list of security and the ratings of the insurance companies and/or Syndicates participating on the risk Wording in detail - including endorsements, exclusions, qualifications, subjectivities, sub-limits, Warranties (Conditions Precedent), adjustment factors applicable to premium, cancellation provisions Confirmation that accurate and proper underwriting information, including loss histories, was presented to Underwriters who are providing coverage for the risks Why Windsurfers Need Insurance   Choosing a Yacht Insurance Company   Examining Jet Ski Insurance   Affordable Boat Insurance For Beginners - What Factors Do You Need To Consider With Boat Insurance?   Facts About Rowing Boat Insurance   

Insure Your Boat - Get Protection From 2 Dangers

Doesn't every boat owner love the feeling you get when you cruise out on the river or ocean in your very own boat? Boating is such a great way to unwind and relax to get free of the tensions of the day. But have you considered the importance of getting your boat insured? Unfortunately many people tend to overlook the vitality of the insurance factor until it's a little too late. Insuring your boat is just as important as having your motor vehicle (car or bike) insured. It is good to be covered with insurance when you meet with an accident that causes damage to the boat.

1. Boat mishaps

This is probably the primary reason why people make sure their boat is covered by insurance. In the event of an accident, the boat can get damaged as can somebody handling or traveling in it. An accident can at times happen when two or more boats collide. At times, the boats collide with swimmers or water skiers. This can understandably result in serious injuries and even death in some cases. An insurance policy can help you pay for the damages your boat may have caused to itself, to you or to a third party even. It is great to know that you are covered for any such expenses you may have.

The ocean is tricky business - one minute the water could be calm and the next it could be choppy as hell. In extreme situations rough water could even upturn your boat. Of course it is much more likely that it happens in the ocean than a lake or a river. Tornadoes and hurricanes are a serious threat in certain regions. Such hazards could destroy a boat even if it were on the land. If you are not covered by insurance you would have to bear the burden of paying for all these damages.

2. Theft

Boats can and do get stolen at times. It can happen to anyone and it can happen to you too. If you see the day when your boat is stolen, unless you get it back without damage you are out of luck. If you do not recover the boat all the money you spent on it is basically just lost.

Most owners feel that getting an insurance policy is a huge expenditure but it is not always the case. On the contrary it is supposed to save you money in the long run. Just take a little time to consider the reasons we have put down in the article. Then you will understand the importance of being covered for expenses by an insurance policy. More often than not, the same company that has insured your car will offer you boat insurance as well

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What is Personal Watercraft Insurance?

Outdoor enthusiasts will tell you that watercrafts are a fun and great way to enjoy the outdoors. Boats, Sea Doos, Wave Runners and other watercraft are enjoyed by many people. However, statistics show that the use of these recreational vehicles leads to thousands of injuries each year. Because of the risk of injury, acquiring personal watercraft insurance is essential to anyone using these devices.

Personal watercrafts are not usually covered by a homeowner or vehicle insurance policy. People will usually have to purchase a special insurance policy.  The insurance you purchase should cover an injury to you or a third party, property damage, passenger liability, medical costs, and theft.  The least expensive choice is liability only coverage. This is much like a car liability policy that covers another person in the event of an accident or injury.

Insurance policies can vary among providers but usually covers a set maximum limit payment for an injury to another person and damage to your own or another person's property. There will also be a set deductible for medical coverage and theft that is determined by the provider. There are also providers who offer water sports liability, which covers risks related with recreational activities such as waterskiing. If you want to ensure that you are completely protected, there are liability packages available that will cover up to $1 000,000 and can cost about $300 per year. There are also insurance policies that will offer discounts if you insure more than one watercraft.

There are two main types of watercraft insurance overage. The insurance can either provide coverage based on the Actual Cash Value of the property, or on the Agreed Amount Value. Policies based on the Actual Cash Value rely on the current value of the equipment at the time of loss or damage. It will be based on the market value found in watercraft pricing guides. The Agreed Amount Value covers policies that are based on the set amount agreed by the client and the insurer. If a watercraft is damaged or completely destroyed, the purchaser will be compensated for the amount that was agreed on at the time of signing the policy. If there is a fractional loss that does not result in depreciation of the watercraft, you may be able to replace the watercraft.  For an additional cost you can insure your personal watercraft with extra options such as coverage for sinking, towing and assistance, damaged vehicle removal, and pollution liability coverage.

Eligibility and costs for watercraft insurance is based on a number of factors that can include, but may not be limited to, the following: the operator and owner must be over 16 years old and hold a valid driver's license, there must be no previous major driving violations for a specified number of years, and there must not be a history of repeat claims.

Personal watercrafts are a great way to enjoy the water. Unfortunately, many people think they are covered under their homeowner's policy until there is an accident. Before you hit the water, make sure you have personal watercraft insurance. There are many personal watercraft insures on the market, so it pays to shop around to get the best coverage at the best rate. Make sure that you talk to the insurance provider about your specific requirements to make sure you are completely covered. You never know when a serious accident will happen. With the right insurance coverage, you will be able to have a fantastic time on your watercraft knowing you are protected.

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Choosing the Right Marine Boat Insurance

If after seeking boat insurance quotes for the latest pleasure craft, it can be difficult to decide on that one policy that offers the best in terms of cover, conditions, and restrictions. Both the cover and services offered by the different marine boat insurance companies will vary.

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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