8. PREPARE FOR PERSONAL LIABILITY
A stout fellow got a $1.8 million judgment due to the heart attack after he tried to pull-start a power lawn mower with a problem starter fifteen times. A family recovered from a boat manufacturer when the husband pushed a trailered catamaran from ramp to storage area with the mast up and was electrocuted when the mast hit a power line. Passengers sue when they slip on wet decks too, and even if they ignored your advice about the need for Topsiders.
While there seems to be a move to limit both "pain and suffering awards" and lawyer's contingent fees, there is no question but that personal liability is the largest risk any boater faces. The chance of loss is minute, but the potential damage so great that coverage should be sufficient to cover even unreasonable claims. Fortunately, the premiums for extended personal liability coverage are most reasonable.
9. CHECK THE COMPANY
Insurance companies, like savings and loans and other firms are not all equal. Some pay claims promptly; others are slower. Some drag their feet on large claims; some do not. If you do not care to totally depend on your agent, check the company you consider with Best's Insurance Guide, your state's insurance commissioner and the Better Business Bureau. Talk to a lot of other boaters. Take special pains to examine out-of-state or mail-order insurance firms that can be difficult to reach if you have problems.
10. NO FREE LUNCH
The Pimsol mark on marine insurance is simple. There is no "free lunch." If a policy sounds too good to be true it could be trouble later. Find a good agent, check their references, deal with reputable insurance firms, read potential policies carefully, fine-tune your coverage to suit your situation and you get value for your dollar. You won't find big bargains. Insurance companies know the odds. So it's a safe bet that a very low premium will, other things being equal, mean possible problems in eventual recovery.
