It was a long, two day tournament. The temperatures remained in the 90's. You are now returning to the Leesylvania State Park launch site, approaching the dock to drop off your partner and go to the "weigh in." On your starboard is a 22-foot Windstar, also approaching the dock to disembark two crew members for the purpose of getting their trailer in the water. You hear two long blasts from the Windstar’s horn; it then turns sharply to the port, cutting in front of your bass boat. You may not have heard or understood the horn blasts. The next thing you know the Windstar and you collide, with the Windstar being hit aft of its bow. The Windstar spins, hits the dock, and shears off its power unit, spilling gas and oil into the water. Fortunately, the Windstar sinks in only four feet of water, and can be recovered that day.

Coast Guard arrives, as the Potomac River is a navigable waterway of the United States, and an oil spill and vessel collision have occurred. You exchange names, addresses and phone numbers with the skipper of the Windstar; exchange insurance company names; and are interviewed by the Coast Guard. Several hours later you are cleared to recover your bass boat, and head home.

As you enter the "on" ramp for I-95, traffic comes to a halt due to heavy congestion. You look into your rear view mirror just in time to see a gravel truck entering the ramp as a high rate of speed. There is the sound of brakes, the smell of asbestos, and sharp lurch of your SUV as it is moved 20 feet up the ramp. The bass boat flips off the trailer onto the shoulder, upside down with the hull split down the keel line. Your 225 hp motor is another 50 yards down the embankment, having coalesced with all your fishing gear. The State Police arrive, you exchange names and insurance companies, and are allowed to leave after the ambulance has taken the truck driver to the hospital.

Hopefully, you have also gotten the names and addresses of all the witnesses to these events.

You once again consider getting home. Since accidents happen in "threes," great anxiety reigns about going home. Considering the events of the day, you could well expect to run over your favorite hunting dog while heading up the driveway. Ain’t life great.

This moment is not the time in your life to learn to spell the name of your insurance agent. You have just been exposed to federal liability laws for oil spills, the law of Admiralty as it applies to the navigable waters of the United States, and the traditional law of Torts, as it relates to car accidents. Rather than heading for Argentina where the United States has no extradition treaty, will you be ready for the financial consequences of this two-day tournament? While this situation may seem remote, there is a statistical probability that all or part of the above will happen to you before you retire from tournament fishing. So, we decided to talk to our insurance agent, Annandale VA’s own Larry Moran (CLU, CPCU, ChFC) of Nationwide about how to "be prepared," as the Boy Scouts’ motto goes.

Do I need boat owners’ insurance?
Boats less than 18 feet are generally covered by most homeowner insurance (depending on the horsepower) for the perils identified in the homeowners’ policy. In addition, all boats when attached to a trailer will be provided liability insurance which extends from the auto policy. However, you must purchase "casualty" insurance to cover damage to the trailer to repair or replace the trailer subject to a collision or those things that happen to it other than a collision. These added coverages are usually part of the boat insurance policy. As most bass boats exceed 18 feet and are propelled by powerful motors, often in excess of 150 hp, boat owner insurance is a must for many bass fishermen, in my opinion.

What kind of insurance should I buy?
Insurance, in general, is designed to place a person who has a loss back to where they were prior to the loss. This is called in insurance lingo "making one whole." If a person has a used boat the insurance will pay "actual cash value" (ACV), as determined by a book used by the industry. This book will identify the actual cash value of the boat at the time of loss and takes into consideration wear, tear and deterioration of the boat. This prevents the insurance policy from placing a client in a better position than they were before their loss. This calculus is considered good public policy and takes away the motivation to better oneself by having a new boat replace an old one.

Market value and insurance value are two different things. Market value is what a willing buyer would pay a willing seller at an arm’s length transaction and reflects the price of the item in today’s marketplace. Insurance value seeks to establish the actual cash value of the boat, less depreciation, as the appropriate insurance amount to be paid at claim time. Auto insurance works exactly the same way. There are very few, if any, replacement cost contracts any more because the insurance companies have determined that there was too much fraud involved with this aspect. There is one caveat. You can buy "stated amount" value insurance, which is a way for you and the insurance company to reach agreement on stated amount value in case of a total loss. This type of policy is only sold by one or two companies. Remember that no matter how well maintained, a used bass boat is substantially less in value than the replacement cost of a new boat. And, half of the replacement cost can be in the motor alone.

What about the trailer?
Make absolutely sure that it is insured beyond the coverage of your auto policy.

What about the fishing gear and other personal property?
Most homeowner policies are a poor source of claim relief for personal property on a boat. The exclusions and limitations of the policy preclude most claims. The boat owner should take full advantage of the boat insurance to cover these articles. The coverage should be determined by the cost of the personal property. Most tournament fishermen have thousands of dollars tied up in rods, reels, bait, electronics, and other gadgets. And, sometimes rods and gear just fall off the boat in the heat of competition. The question is whether you want the property insured, and if yes, at market value or replacement cost. Most homeowner policies are not adequate, but double check with your agent. When buying a boat insurance policy for personal property, think in terms of at least $5,000. Also think in terms of replacement cost, as used fishing gear does not have much value. (Some of the "best buys" in fishing gear occur at the Estate Sales of a "late" member of the Virginia Bass Federation.)

What about the oil spill?
Yes. This can be covered under the liability portion of the policy, if it is determined that the spill was a negligent act of the boat owner. The boat owner must look to any possible "pollution" exclusion that may attach to the liability portion of their policy. Buying just this kind of coverage on a mono line basis is not possible at any price.

How do I understand my coverage?
Meet personally with your insurance agent, asking him to take you through the policy. Ask for copies of the policy binder, and a copy of the various applicable schedules. Then, look carefully for exclusions that apply to events for which no coverage exists. (E.g., nuclear attack, terrorists, etc.) As the May article on "Trailer Boats" notes, look carefully at the following provisions of the policy: exclusions, agreed stated amount value where total loss, actual cash value where total loss, deductibles (here is where some money can be saved), coverage for partial loss (this is a key provision), outboard motor coverage, trailer coverage, emergency on-water towing, emergency trailer towing, personal injury liability limits (think in terms of very big numbers), property damage, medical payments, non-owned boat coverage, uninsured boater coverage, wreck removal, salvage costs, and oil spill liability.

CLAIMS

How do I file a claim?
First, notify your insurance carrier immediately of any accident. Sooner the better. Second, read the insurance card which often advises: do not admit liability, do not reveal the scope or amount of coverage. Finally, ask for the claim forms, responding quickly with a narrative of what happened along with pictures and any police or Coast Guard report. And, include the names and addresses of all the witnesses. Claims may now be filed on the Internet.

What is the role of law enforcement reports in these kinds of accidents?
You should call in the police immediately when there is an accident in order to help fix responsibility. If this is not done, the process of fixing blame will be more difficult and could be harmful to the party not responsible for the accident. The only thing that could void the coverage would be "late" reporting which was made substantially after the accident and precludes the insurance company from a fair assessment of the claim, or material misrepresentations of the facts, or fraud. Further, generally speaking, under U.S. regulations boating accidents involving a death or disappearance must be reported within 24 hours; if medical treatment beyond first aid is required within 48 hours; and if the vessel is a complete loss or the damage to vessel and property exceed $2,000 within 10 days. Each state may have more rigorous requirements.

How do I justify my claim?
Pictures of your boat and trailer, plus copies of the registration are essential ingredients to any claim. As to personal property, submit photographs or a video tape of all the gear on your boat. Many folks fail to identify or memorialize the extent of the gear. This can be fatal to a comprehensive settlement. (Remember, fishermen are not well known for telling the truth on some issues, like the one that "got away." This could carry over to your gear.) I recommend a VCR, with narrative, identifying all of the personal property. I would add that some companiesincluding Nationwide provide the boat owner with a pamphlet which allows them to write down the article and it's cost for safe keeping and accurate reporting.

Will I get a new boat or just a repaired boat?
Depends. Repair costs are always paid if the repair is lower than the total loss cost. Don't confuse the stated amount warranty and an insurance loss. They are two distinctly different contracts. The stated amount warranty will exclude insurance type coverage and vice versa. The only thing that could cause a loss of the warranty is if the repair is not done according to the warranty requirements (ie: working with approved dealers) but that usually is only referring to normal non accident types of repairs. If the boat is viewed as a total loss, you will be given a settlement for the actual cash value of the boat, motor and/or trailer, depending on coverage and extent of damage. There may be an instinct for the companies not to declare a total loss, but rather pay for the repair costs. If this happens, notify the manufacturer immediately, as the repairs may void the stated amount and motor warranties. You have a credible argument to reject a settlement that results in a loss of the warranty for the stated amount or motor. Also, be careful with any dealer or marina that works for the insurance company in providing a damage estimate for repair. There may be an urge to repair, rather than declare a total loss. Finally, there is no reason to believe that the first offer of settlement from the insurance company is the best, last, final offer. You should not hesitate to negotiate.

What happens when you reach an impasse with the insurance company?
You will have some difficult choices to make. First, the marina that made the estimate of damage will want the boat removed or it will start charging a storage fee. I prefer the West Virginia strategy of putting the trailer and boat up on cement blocks in the front yard until there is a settlement. Under this approach, your neighbors will vigorously participate in any settlement discussions. You should never hesitate, in fact insist, that the insurance carrier get another estimate of loss where there is serious disagreement on value. If you have a problem with theinsurance company, be aware that each state has a prescribed recourse procedure. The boat owner should contact the state bureau of insurance on those procedures. The insurance company will then have to follow the procedures to resolve the claim.

Do the same ideas apply if the boat or gear is stolen?
Yes.

What happens if I have to have my boat towed?
You can purchase a towing package which would allow you coverage for having your boat towed if it is stranded and "dead" in the water. We would highly recommend this coverage because it's just a matter of time before it will be used.

Any free advice?
Yes. Take the Coast Guard boating safety courses, fish carefully, and be cautious. The boat you sink may be mine. Most important, have an insurance "check up" every couple of years. Policies and personal circumstances change.