Charter Lakes Marine Insurance initiates the Disappearing Deductible for the NACO Group Insurance Program

Posted on February 14, 2011 by Dan Longman

Grand Rapids, MI – Charter Lakes Marine Insurance announces the introduction of the Disappearing Deductible for the NACO Group Insurance Plan. NACO member policyholders will see their hull deductible disappear with our new Disappearing Deductible policy feature. 

  • Beginning in 2011, at your first renewal, your original elected deductible will drop by 25%.
  • Each subsequent year you remain claims-free, your hull deductible will drop another 25% until it reaches zero.
  • Once it reaches zero – it stays that way as long as you remain claims-free and insure with Charter Lakes and the NACO Group Insurance Plan.
  • Current policyholders of the NACO Group Insurance Plan automatically receive this benefit beginning in 2011.

 “Rewarding clients who do not have claims is the right thing to do “says Dan Longman, president and CEO of Charter Lakes Marine Insurance”.

 Charter Lakes adds value for its clients through continual improvement to the NACO Charter Policy while remaining the low cost provider.  Please visit www.charterlakes.com for a full explanation of the Disappearing Deductible as well as the other benefits of the NACO Group Insurance Plan.

Posted in NACO Insurance Program | Tagged | Leave a comment

NACO Continues Exclusive Partnership with Charter Lakes Marine Insurance

Posted on February 10, 2011 by Dan Longman

Press Release 02/10/2011

Orange Beach, AL – The National Association of Charterboat Operators (NACO) will continue its exclusive relationship with Charter Lakes Marine Insurance to administer the NACO Group Insurance Program. Charter Lakes and NACO teamed up back in 1991 to develop a Hull and Liability policy for NACO members. Twenty years later the NACO Group Insurance Program is still going strong. 

“We are proud to continue our long standing support of NACO and its sponsoring associations” said Dan Longman CEO of Charter Lakes Marine Insurance.  “Our commitment remains to provide NACO members with the best overall value on their Charterboat Insurance. Over the past 20 years we have worked hard to continually improve the NACO Charter Policy while remaining the low cost provider.  We want to thank NACO and the NACO members who insure with us.”

Please contact Charter Lakes Marine Insurance at 800-879-2248 or at www.charterlakes.com for more information.

Posted in NACO Insurance Program | Tagged | 1 Comment

Putting Lipstick on a Pig

Posted on February 1, 2011 by Dan Longman

PigIn 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 terms and conditions, ie,“the fine print”. 

Charter Lakes is your Marine Insurance Specialist. We not only understand the NACO Charter Policy, we helped write it. As your agent, our mission is to provide you with the best overall value on your marine insurance. On the 20th anniversary of the NACO Group Insurance program we continue to live by this goal with continual improvement to our policy and to our service while remaining the low cost provider.

In these difficult financial times we understand the desire to cut costs. However, it does not pay to purchase a policy that leaves much of your boat uncovered. We have recently seen an insurance company peddling a policy that excludes any loss caused directly or indirectly by mechanical breakdown and overheating. This means your engine(s) are not covered if they breakdown for any reason. Engines are typically the most valuable component of any charter boat.

The NACO Charter Policy does not exclude mechanical breakdown and overheating. Before you consider changing insurance policies please contact Charter Lakes to discuss the difference in policy language. This is just one example of a policy difference that could cost an unsuspecting charter captain thousands of dollars in unpaid insurance claims.

The NACO Charter Policy is one of the broadest small passenger vessel policies in the industry. For you to understand the difference between policies you need to understand what is covered and what is excluded. On the next page is a brief comparison between the NACO Charter Policy and charter policies offered by other underwriters.

Posted in NACO Insurance Program | Tagged | Leave a comment

NACO Insurance Program Update

Posted on February 1, 2011 by Dan Longman

NACO | National Association of Charterboat Operators 2011 marks the 20 year anniversary for the NACO Group Insurance Program. For the past 20 years Charter Lakes has administered the program and the St Paul Travelers has underwritten the insurance coverage. In the insurance industry this longevity is rare and is testimony to mutually beneficial relationships that have been forged by all stakeholders. We are grateful to NACO and the membership for their trust and support.

Over the past 20 years our mission at Charter Lakes has been to deliver the best overall value to our clients on their charter boat insurance. We have done this by keeping premiums low, improving our service and continual improvements to the policy. Our hull and liability premiums are actually lower today than they were in 1991. Today the NACO Charter policy is the industry standard for insuring any type of small passenger vessels on a countrywide basis.

DISAPPEARING DEDUCTIBLE

New for 2011 is the introduction of the Disappearing Deductible for NACO Member policies. This new coverage feature will reduce your Physical Damage Deductible after one year of loss free operation by 25% each year until the fifth year when your deductible will be zero. You have to continually insure your boat with the NACO Charter Policy during this time. If we pay a physical damage claim during this 5 year period of time, the Physical Damage Deductible will return to 100% of the initial deductible until consecutive loss free terms are accumulated.

Current clients will receive information regarding the Disappearing Deductible with their renewal policy. We want to reward loss free operation and believe this the best way to do so. This new coverage feature begins in the 2011/12 policy period for all NACO member policies insured through Charter Lakes.

MORE POLICY OPTIONS

We have clients who for one reason or another are not concerned about physical damage to their boat. They perform all their own repairs or may have an older boat that is not worth a great deal. For these captains their primary concern is from catastrophic hull loss and liability coverage for their passengers and crew. Or they may want liability only.

We want all NACO members to know that we have options available to you that can satisfy any insurance need. We can customize a charter policy to meet any coverage need. Please contact Charter Lakes to discuss the best solution for you.

Posted in NACO Insurance Program | Tagged , | Leave a comment

Operating Your Charter Business as a Corporation

Posted on January 7, 2011 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.

If you own your boat personally and lease it to your corporation the same rule applies.
In that case the corporation would be the named insured and you would be listed as an additional insured and loss payee on the policy. If you captain your own vessel we typically name you along with the corporation as named insureds on the policy.

If a passenger is injured serious enough to sue you, the attorneys will name you and your corporation in the suit. However, insurance can only defend the person(s) or entities listed on the policy as a named insured. If the corporation is not listed, it may not be protected.

The same reasoning is true for Assumed Names or DBAs. Many captains use an assumed name for marketing purposes. An example would be Captain John Doe doing business as JD’s Fishing Adventures. JD’s Fishing Adventures is an assumed name. Assumed names are typically registered with your state of residence so no one else can use that name. An assumed name can be used by sole proprietors, partnerships or corporations. If you use an assumed name in your business, that name should be listed on your policy so you are protected properly.

There is no additional premium charge for naming your corporation or DBA as a named insured on your policy.

Please let us know if you operate your business as a corporation or if you operate with an assumed name or both, so we can protect you properly.

Posted in Charter Business | Tagged , | Leave a comment

Lay Up

Posted on January 6, 2011 by Dan Longman

Each marine insurance policy written in northern climates (where the potential for freezing exists), has a Lay Up Warranty that indicates the period of time the insured boat is required to be laid up and out of commission.

Many policies also specify whether the boat is to be laid up ASHORE or AFLOAT.

Making sure your policy accurately reflects the period of time your boat will be Laid Up and whether the boat is laid up ashore or afloat is your responsibility and is as important as winterizing an engine if a loss occurs to your boat during the Lay Up period.

Example:  A couple years ago one of our Minnesota charter clients decided to bubble his boat for the winter, laying the boat up afloat.  His policy was set up with Lay Up ashore according to the insurance application he originally submitted.

He failed to contact us to let us know of the change in Lay Up status and in February of that policy period his boat took on water and sunk in its slip.  The insurance company denied coverage and did not pay the claim due to the breach of the Lay Up Warranty specified in his policy.

In retrospect, all the captain had to do was to notify us letting us know of the change in lay up status and we would have changed his policy to cover his boat properly.

Conversely, many insurance companies give a premium credit for each consecutive month a boat is Laid Up during a policy period.

The credit is usually higher if the boat is Laid Up ashore rather than afloat because the exposures are greater when the boat is afloat, but if you have a long Lay Up period it can lower your annual premium significantly.

It makes good sense to review your charter policy at this time of year to be sure your policy accurately reflects the time frame and manner in which your boat is laid up.  It may even save you money.

If you have any questions concerning winter Lay Up or decide to change the manner in which you lay your boat up this winter please notify us so we can change your policy and protect your boat properly.

Posted in Boat Maintenance | Tagged , | 1 Comment

Tips for protecting your vessel

Posted on January 6, 2011 by Dan Longman

As mariners, there is nothing we can do to change severe weather predictions. But we can be prepared. Planning for the safety of your boat and where it will survive best is a lot like the real estate business, Location, Location, Location. The first major decision, one that affects all subsequent action, is finding a safe location where you can keep your boat during a storm.

If trailer-able, your boat should be removed from the water at least 48 hours prior to projected landfall and stored in a location that is inland from the coast and safe from high winds and tidal surge. We found that boats stored on trailers at protected locations inland from the coast,  faired very well in prior hurricane seasons.

If you are unable to trailer your boat, develop a Hurricane Plan that includes moving your boat to a safe location where the boat can be secured and protected. This may include a marina where the dockmaster has an established hurricane plan in place. Canals, rivers and waterways are usually better alternatives to marinas, and the farther inland the better.  Here you can find a “Hurricane Hole” that is protected from wind and surge. This may require using pre-built line and chain assemblies designed specifically for your mooring location. Another good option is to haul your boat at a marina that offers hurricane storage where your vessel can be strapped down to the ground. Vessels should never be left in davits or on a hydrolift.

After a storm, a check of your vessel should be done as soon as safely possible.  If you find damage to your boat, take such action that is necessary to save and preserve property, photograph any damage, and report any loss or claim to us immediately.  We are here to help!

Posted in Boat Maintenance | Tagged , | Leave a comment

Tight Lines

Posted on January 6, 2011 by Dan Longman

Over the past 25 years we have seen many boats catch fire and burn for one reason or another, in many cases the reason for the fire is unknown.

We recently had a claim where a boat burned to the waterline; the reason for the fire was attributed to electrical failure.

During the claim investigation, it was discovered that a fuse had blown in the automatic battery charger and instead of replacing the fuse with the proper replacement, the owner wrapped the blown fuse in aluminum foil and placed it back into the fuse holder.

This rendered the fuse (overcurrent safety device) worthless which created all kinds of problems.  One of the batteries had a bad cell which caused the automatic battery charger to sense low charge, and run continuously, which cooked the other batteries.  The continual running of the charger on full drew too much amperage over an extended period of time through the supply wire leading to the charger, causing it to overheat and fail.

We are not sure which of these problems actually started the fire, but the combination leads us to believe that the improper fusing was ultimately responsible for the fire.

This is an extreme example, but the fact remains that overcurrent devices are intended to provide protection for the supply wire and the electrical equipment they are designed to protect.  Exceeding the equipment manufacturer’s recommended fuse rating, or maximum amperage rating of the supply wire, will result in failure of the fuse to protect your electrical equipment properly and could result in fire aboard your vessel.

Along the same line, in surveyor reports we often see the presence of overrated fuses or fuses marked “SFE” which are intended for automotive usage, installed in a marine fuse panel or electrical equipment fuse holders.

Fuses marked “AGC” are intended for marine use.

The amperage rating of an SFE fuse is in direct relationship to the physical length of the fuse, the longer the SFE fuse the higher the amperage rating.

A fuse marked AGC has a specific (unchanging) physical length.  The amperage of the AGC fuse is determined by the size of the fusible metal strip inside the glass, not the physical size of the fuse itself.

Because the size (length between contacts) of the fuse holders in marine 12vdc electrical fuse panels, fuse blocks or in line fuse holders are maintained at a constant, it is important to use AGC fuses.  Use of AGC fuses allows you to complete the circuit and provide protection at the recommended amperage.

Note: Your primary automatic bilge pump (the pump located where sea water typically gathers) should be wired directly to a 12vdc power source.  Secondary automatic bilge pumps should be wired and fused independently of each other to avoid multiple failure.

Note: Amps = watts divided by volts.

Fuse size should not exceed 125% of the total load or the current carrying capacity of the conductor (ampacity).

Recommended reference: “Your Boat’s Electrical System” by Conrad Miller

Posted in Boat Maintenance | Tagged , , | Leave a comment

Winterization Strategies

Posted on January 6, 2011 by Dan Longman

For those insureds that live in colder climates and are not taking their vessel south for the winter its time to start the decommissioning process.

When it comes to storing your vessel in the winter you should ensure that your vessel is adequately decommissioned for storage throughout the offseason.  Depending on your location you may want to consider indoor, covered and secured storage versus leaving the vessel outdoors.  Proper winterization means more than cleaning out the vessel from the year’s use.  It requires some time and thought to properly get the vessel ready for the winter months.  If you choose to winterize your vessel yourself you should ensure that you have obtained all of the necessary information regarding winterizing your boat to cover yourself from making any type of errors or mistakes.  Proper winterization comes down to these three things:

  • If it moves, grease it.  Lubricate all moving parts to ensure they remain that way until spring.
  • If it could freeze, protect it either with antifreeze or by aerating the whole system.
  • Be sure any fuel stabilizer or treatment makes it all the way through the fuel system to the engine.

In the spring you want to ensure that your vessel has been properly inspected to cover items sometimes overlooked such as drain plugs in the transom.  It is recommended that you make a list of items you find from your winterization, so that your readiness in the spring goes smoothly.  REMEMBER, manufacturers often have their own recommendations for winterization.

Typically the marina or yacht club you choose to store your boat will have the ability, at a cost, to ensure that a vessel has been correctly prepared for winter and spring commissioning.  You can speak to your marina or local boat dealer/broker to learn about boat storage.  Finally, the internet has thousands of different websites and sources of information on boating and boat storage.

Posted in Boat Maintenance | Tagged , | Leave a comment