Clarification
Russell F. Neary, an underwriter for GeneralCologne Re Marine Worldwide, has offered a clarification of some information presented in a Feb. 11 article on watercraft insurance on page 12.
The article quotes Michael Agliata of LoVullo Associates, stating that protection and indemnity policy forms pick up salvage under the liability limits.
In a e-mail message to NU, Mr. Neary has pointed out that what Mr. Agliata is referring to is the fact that P&I coverage would respond to a removal-of-wreck claim, noting that “salvage” expenses are always covered under the hull portion of the policy.
Salvage is only attempted when it is believed that the recovered vessel will have a residual value that warrants the expense of salvage, Mr. Neary wrote.
ROW is required when the local jurisdictional authority, such as the U.S. Coast Guard or the Army Corps of Engineers, deems the sunken vessel to be a hazard to navigation. The authority would issue an order to have the vessel raised and then the insurance company would solicit quotes from salvagers.
Mr. Agliata agrees that Mr. Nearys discussion is more technically correct. He believes, however, that neither description should diminish the main point of his original discussion–that there is additional coverage under the P&I form.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, April 1, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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