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Coronavirus - Insurance Question

Old 03-23-2020, 02:18 PM
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Default Coronavirus - Insurance Question

Hello,

My boat's insurance policy is with National Specialty through Charter Lakes.

I would like to know if there is any impact to the coverage due to COV19. More specifically, are any of the exclusions for "Act of War", "Act of God", etc. being applied at this time or planned?

Please advise.

Thank you.

Regards,
Old 03-24-2020, 05:38 AM
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Hello HS2300

Thank you for posting this question. There are no exclusions in your policy that would apply to COVID-19 or any virus including influenza or the common cold.

COVID-19 and the containment policies in place have disrupted all our lives. It has changed the way we do business for those still open (our entire staff are working from home as most everyone else), closed the doors of most small businesses, flushed our booming economy down the drain, and flipped our 401K's upside down. The only upside is fuel prices are the lowest in 20 years, but there is literally no where to go.

This is the United States of America however, we have been through much worse, and we will get through this as well.

Keep your families healthy, the fish will wait for you...

Best Regards and God Bless
Charter Lakes Marine Insurance
Insurance for Boats, Charters, Fishing Guides, Commercial, and More!
Old 03-24-2020, 05:41 AM
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Thank you for response.
Old 03-24-2020, 06:32 PM
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I don't understand. Are you saying insurance companies will use COVID-19 to get out of paying a claim? If your boat burns down I don't see how this is COVID-19's fault.
Old 03-24-2020, 06:34 PM
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The unwritten answer is:

no your premium won’t go down because CV19 shortened the season.
Old 03-24-2020, 06:41 PM
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Sort of... I have read policy cover to cover in the past and recalled references to Acts of War, Acts of God, etc.

Very often, insurers want pay claims during certain events.

My concern was regarding a general pause in coverage due to the pandemic.

I simply wanted to confirm that we aren't in the midst of one of those events from the insurance company's perspective.

Better to ask, than to find out the hard way.

Sample scenario: the marina suspends being formally open due to the pandemic, but allows tenants to use the docks. Then something happens that requires a claim. All of a sudden, the claim is denied, because the pandemic is considered an Act of God or because the POTUS signed some sort of Presidential Order.

Yes, it sounds paranoid, but part of my career has been in risk mgt and mitigation.
Old 03-24-2020, 07:00 PM
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I think you bring up a valid point raising two concerns.

I would think if you used the vessel unlawfully i.e. took it out during martial law restrictions, etc...I could see an insurance company raising an issue.

Further, if someone is in financial trouble and sinks their boat for insurance money, it's major fraud Covid-19 or not....
Old 03-25-2020, 06:01 AM
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Originally Posted by HS2300 View Post
Sort of... I have read policy cover to cover in the past and recalled references to Acts of War, Acts of God, etc.

Very often, insurers want pay claims during certain events.

My concern was regarding a general pause in coverage due to the pandemic.

I simply wanted to confirm that we aren't in the midst of one of those events from the insurance company's perspective.

Better to ask, than to find out the hard way.

Sample scenario: the marina suspends being formally open due to the pandemic, but allows tenants to use the docks. Then something happens that requires a claim. All of a sudden, the claim is denied, because the pandemic is considered an Act of God or because the POTUS signed some sort of Presidential Order.

Yes, it sounds paranoid, but part of my career has been in risk mgt and mitigation.
Hi HS2300

We have actually never seen a boat policy with an "Acts of God" exclusion written into it, and we work with about 15+ marine specialty insurance companies. Sometimes we have seen that exclusion written within a common carrier insurance policy (companies hired to transport boats over land or sea), but not in a boat or yacht policy. An "Acts of War" exclusion is standard in every policy but that has nothing to do with the COVID-19 virus as it is not considered an "Act of War".

If you have any additional questions regarding your specific policy, please refer to the "Exclusions" or "General Exclusions" sections of your policy, or feel free to contact us directly and we would be happy to go over those with you.

Best Regards
Charter Lakes Marine Insurance
Insurance for Boats, Charters, Fishing Guides, Commercial, and More!
800-879-2248
Old 03-25-2020, 06:11 AM
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Ok..

I stand corrected.

thx
Old 03-25-2020, 06:13 AM
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Originally Posted by HS2300 View Post
Ok..

I stand corrected.

thx
HS2300

Great questions actually and good discussion - I'm sure many others have the same concerns!

Stay Safe
Charter Lakes Marine Insurance
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800-879-2248


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