Insurance Doesn't Matter,
Until it Does
Carter Gowrie
Gowrie Group, President
April, 2011
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Insurance Doesn’t Matter,
Until it Does
Raise your hand if:
1. You are a current/past flag officer or yacht club
board member
2. You are or have been involved in the insurance
buying decision for your yacht club
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There is a Time When
Insurance Brokers are
Suddenly Very Popular
Play slideshow
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Hurricane IKE. Source: Cran Fraser at cfraser@hayscompanies.com
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After a Catastrophe,
Bad Insurance can Give You
a Sinking Feeling
Yacht Merrimac, 1999, grounded on Canada’s Sable Island’s notorious “swallowing sands”.
Source: www.panbo.com, photographer unknown.
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Have You Ever Received a
ROR Letter?
THIS ENDORSEMENT CHANGES THE POLICY.
PLEASE READ IT CAREFULLY.
EXCLUSION – SEXUAL ABUSE, PHYSICAL ABUSE
OR MOLESTATION
This endorsement modifies insurance provided under
the following:
COMMERICAL GENERAL LIABILITY
This insurance does not apply to “bodily injury”, “property
damage” or “personal and advertising injury” arising
out of the sexual abuse, physical abuse or molestation
of a minor by:
1. Any insured;
2. Any “employee” of any insured; or
3. Any volunteer of any insured.
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At Least Know What is Excluded
(Example 1: Marine Liabilities)
EXCLUSIONS FROM COVERAGE - This insurance does not apply
to loss, damage, liability or expense directly or indirectly caused by
or contributed to or resulting from:
SECTION II: Marine Liability
2.7. Any liability, loss, damage, or expense arising out of swimming,
snorkeling, diving, or similar activities
2.8. Any liability, loss, damage, or expense arising due to the failure of
the Insured to have a competent employee of the Insured
at all times in charge of any watercraft being navigated
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At Least Know What is Excluded
(Example 2: Pollution)
EXCLUSIONS FROM COVERAGE - This insurance does not apply
to loss, damage, liability or expense directly or indirectly caused by
or contributed to or resulting from:
SECTION III: Pollution
5.1. Any loss, damage, liability or expense that the insured shall
become liable to pay and shall pay for “bodily injury,” or “property
damage” directly or indirectly arising out of, contributed to or
resulting from the actual, alleged or threatened “release” of
“pollutants” into or upon land, the atmosphere or any
watercourse, water supply reservoir or body of water
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And Know What Voids Your
Coverage
WARRANTIES - This insurance shall be void unless:
SECTION VIII: OWNED WATERCRAFT INSURANCE
3.1. The watercraft insured are maintained by the Insured in a
seaworthy condition at all times during the term of this
insurance
3.2. The watercraft insured are operated by duly qualified
persons, as required by federal, state or local regulation
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Most Common Claims Types,
Not What You Might Expect
By $’s of Claim Payout*
Not What You Expect
1. Dock damage
• More claims on-land than on-the-water
2. Slip & Falls (Liability)
• Dock claims, not the most frequent, but
extremely costly
3. Property damage (non-dock)
4. Workers compensation
5. Liquor liability
• Slip & Fall claims as common at yacht
clubs as at commercial businesses
• D&O and EPLI claims are on the rise
6. Boat damage
7. D&O / EPLI
8. Theft
9. Auto
10. JR Sailing
*The Burgee Program data analysis, 3 years of claims over $5000
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D&O and EPLI Claims are
Becoming More Frequent and
More Complex
Club officers and directors at risk for complex lawsuits
• General D&O liabilities
• Membership discrimination and discriminatory hiring
• Fiduciary liability and financial mismanagement
• Race management errors and omissions
• Wrongful termination
EPLI lawsuits are on the rise – clubs and officers are exposed
• More EPLI claims filed in 2010 than any past year on record*
– Up 7% since 2009, up 25% since 2000
• Small employers (less than 100 employees) account for 41% of the claims
• Over a 5 year period, 6 of 10 employers will face an employee lawsuit
• Average out-of-court settlement is $40,000 to $50,000
• Average compensation award is more than $200,000
*Source: US Equal Employment Opportunity Commission, 2010
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“Not on my watch!”
Club officers and managers need to
be proactive about safety:
Safety Materials You Need:
• Storm preparedness and CAT
management
• Standard JR registration forms
• Clubhouse/restaurant standards
• Inspection checklists
• Dock safety and maintenance
• Pool and beachfront safety
• Release forms
• New member checklists
• Employee orientation checklists
• Safety committee agendas
• Clean marina environmental standards
• Junior sailing safety
All these materials and more can be found
on The Burgee Program USB card:
• Emergency medical procedures
• Quarterly Safety Committee meetings
Complimentary copy of The Burgee Program’s:
Yacht Club Safety Manual
Junior Sailing Safety Guidelines
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A Sense of Calm:
brought to you by The Burgee Program
The Burgee Program today insures:
– More than 50% of yacht clubs in the US
– More than 150 class associations
– Hundreds of other sailing organizations
Team behind the program is best in class:
– Managed by the sailors and marine insurance
experts at Gowrie Group
– Underwritten by Chubb
– Endorsed by US SAILING
Learn more:
– Visit us at www.burgeeprogram.com
– Call us at 800.262.8911
– Email us at burgee@gowrie.com
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