AAIS BOATOWNERS COVERAGE FORM OVERVIEW

(July, 2018)

INTRODUCTION

The AAIS Boatowner policy is quite like the approach used in a standard automobile form. It provides protection to watercraft as well as against a boat owner’s liability to third parties for both injuries and damage to their property.

ELIGIBILITY

Though individual companies can decide upon their own criteria, AAIS does supply some critical parameters for acceptance.

POLICY MAKE-UP

The AAIS Boatowners Special Coverage Form consists of the following forms:

Boatowner Declarations

Related Article: Boatowners Declarations Page

BT 0100–Boatowners Special Form

Policy Cover Page or Jacket. This form is designed by individual insurance companies for their own purposes and may include a table of contents or index to meet the requirements of some states.

BOATOWNERS COVERAGE FORM

The AAIS Boatowners Special Form is designed to address property and liability exposures faced by a wide variety of pleasure boat owners. The optional endorsements available to use with it should be examined and used to tailor the coverage to meet the needs or requirements of a given owner.

COVERAGE FORMAT

The Boatowner Special Form is made up of the following, separate sections:

Definitions–terms that have a special meaning which are used throughout the policy
Property Coverages–discusses the protection provided to boats (including certain non-owned boats), boating equipment and boat trailers
Liability Coverages–identifies the liability coverage provided. This includes personal liability, medical payments
Uninsured Boater Coverage-includes information on coverage, exclusions and arbitration
Loss Duties
Sections on settlement provisions, additional exclusions and limitations
Other Policy Conditions-which apply separately to property, liability and to the entire policy

ENDORSEMENTS

Endorsements tailor the coverage forms to customize the protection needed for specific situations. Examples are the various state amendatory endorsements and those containing the terms for cancellation and suspension. Others are used only with certain types of boating situations. Some cover additional insureds and others with a financial interest in the covered craft. A few endorsements add coverage, such as expanded emergency service or personal effects, while others add additional provisions.

UNDERWRITING AND RATING

Underwriting and rating boatowner coverage involves understanding the applicable boat’s features, such as its actual cash value (based on features and equipment), method of power and value of other boating property. Information on craft length and horsepower of motor and/or engines is also critical.

453.5-2 AAIS Boatowner Coverage Form Rating Considerations

The most important underwriting factor is evaluating the boat operators training and experience as well as the navigable waters (i.e., Great Lakes v. coastal waters) where the craft is used and amount of use (lay-up periods).

AAIS Boatowner Coverage Form Underwriting Considerations