Putting Lipstick on a Pig

Posted on by Dan Longman

NACO Insurance ProgramIn 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.