Constructive Total Loss - When Lightning Strikes

Constructive Total Loss - When Lightning Strikes

Posted on by Dan Longman

The words “total loss” probably bring a few situations to mind: convincing your wife it’s logical to spend your entire savings on an around-the-world fishing adventure, or your efforts at becoming a decent golfer. Sometime near the tenth round of golf lessons, you realized that your slice is never going to correct itself and maybe there is a hobby out there much better suited for you, with much less frustration involved. Unfortunately, in the watercraft insurance industry, the conclusion is not always so cut and dry, since many factors can have an effect on the determination whether your boat accident... Continue Reading

Good News! TWIC cards no longer required for some mariners

Good News! TWIC cards no longer required for some mariners

Posted on by Dan Longman

NACO (National Association of Charterboat Operators) has worked diligently on the TWIC card issue from the very beginning explaining this was an unnecessary financial burden and would not provide additional security. We can proudly announce some good news for many captains. The Coast Guard has released a Policy Letter which modified the requirement that all mariners obtain a Transportation Worker Identification Credential (TWIC) in order to be issued a Merchant Mariner Credential (MMC). The Coast Guard is allowing mariners without a valid TWIC who operate on board vessels that do not have a security plan to acquire and renew a... Continue Reading

Happy Holidays, Captain!

Happy Holidays, Captain!

Posted on by Dan Longman

From all of us at Charter Lakes, we would like to wish you and your family a Happy Holiday Season. We also want to thank you for being a valued Charter Lakes customer. While speaking at a marine insurance conference in October about “underwriting charter boat insurance”, I was asked if I saw an increase in my customer’s charter businesses due to weak boat sales. It made sense to the questioner that if people could not afford to buy a boat the next best thing was to charter a boat. I agreed, but could not report I had heard that... Continue Reading

Putting Lipstick on a Pig

Putting Lipstick on a Pig

Posted on by Dan Longman

In the marine insurance business this phrase relates to dressing up a cheap policy to make it look more attractive than it really is. When you purchase a marine insurance policy you are transferring the risk of charter boat ownership to an insurance company who agrees to bear the risk in exchange for a premium. However, the insurance company writes the insurance policy. You have very little input into the terms and conditions of coverage. That is why it is so important to work with a marine insurance specialist who represents many marine insurers and understands the differences in policy... Continue Reading

Operating Your Charter Business as a Corporation

Operating Your Charter Business as a Corporation

Posted on by Dan Longman

Many captains operate their business as a corporation but fail to inform us they are incorporated. It can be confusing if you own your boat personally and run your business as a corporation. Who should you insure? The answer is both you and your corporation should be listed as named insureds on your policy. Operating your charter boat business as a corporation is done primarily to transfer the liability of that business to the corporation and shield you from personal liability. To make this transfer complete, the corporation should be listed as a named insured on your charter insurance policy.... Continue Reading

Preparing Your Passengers

Preparing Your Passengers

Posted on by Dan Longman

Taking the public for hire is serious business. The captain needs to be aware of who he/she is taking out. For many passenger’s, this is their first time on a boat and they most likely do not have any idea how to operate it or what to do in an emergency situation. If you or your captain fall overboard or have a serious medical condition, will your passengers know what to do? The following are some of what should be covered with your passengers before leaving port on each trip: • Show them where the life jackets are located so... Continue Reading