Subscribe to RSS FeedEvery business has its own workings. The convenience store owner knows his trade, but he wouldn't know jack about being a literary agent. While this is an admittedly obvious observation, it's helpful to acknowledge the obvious as a means to a better understanding of what we don't know. Marine insurance, for example, is a topic many folks think they have a handle of when, in reality, its many messy contours are often poorly understood.
Of course, a boat owner doesn't need to understand marine insurance chapter and verse, but knowing some things to watch for can really help protect your interests. (It's analogous to the prudent mariner keeping a watchful eye on the weather while still making lively small talk with his guests.)
One gray cloud that requires a boat owner's utmost attention is when a marine insurer declines coverage or reserves its right to subsequently decline coverage. In plain language, this means that your vessel insurer believes it isn't obligated to cover your claim. This could leave you facing the highly unpleasant situation of defending against an uninsured loss. When you receive such a notice from your insurer, it's probably a good idea to promptly retain maritime legal counsel to review the insurance company's position. Remember, insurance policies are simply contracts and while the insurer may have one interpretation, it may not be a particularly strong position. That is, you don't have to accept your insurer's position and you may have traction to argue that coverage, in fact, does exist under the policy language.
Nothing will put you to sleep faster than a dose of marine insurance on a soggy Fall day, but this is one of those topics that's worth having heard something about.
Underway and making way.
--- JKF
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