Insurance Doesn't Matter, Until it Does. Carter Gowrie Gowrie Group, President April, 2011

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1 Insurance Doesn't Matter, Until it Does Carter Gowrie Gowrie Group, President April,

2 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 2

3 There is a Time When Insurance Brokers are Suddenly Very Popular Play slideshow 3

4 Hurricane IKE. Source: Cran Fraser at

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25 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: photographer unknown. 25

26 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. 26

27 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 27

28 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 28

29 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 29

30 Most Common Claims Types, Not What You Might Expect By $ s of Claim Payout* 1. Dock damage 2. Slip & Falls (Liability) 3. Property damage (non-dock) 4. Workers compensation 5. Liquor liability 6. Boat damage 7. D&O / EPLI 8. Theft 9. Auto 10. JR Sailing Not What You Expect More claims on-land than on-the-water Dock claims, not the most frequent, but extremely costly Slip & Fall claims as common at yacht clubs as at commercial businesses D&O and EPLI claims are on the rise *The Burgee Program data analysis, 3 years of claims over $

31 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,

32 Not on my watch! Club officers and managers need to be proactive about safety: Storm preparedness and CAT management Clubhouse/restaurant standards Dock safety and maintenance Pool and beachfront safety Clean marina environmental standards Junior sailing safety Safety Materials You Need: Standard JR registration forms Release forms Inspection checklists New member checklists Employee orientation checklists Safety committee agendas 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 32

33 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 Call us at us at 33