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having relation to the towage of any other vessel or craft.? Knitting these coverages together to properly insure the Tower?s exposures can be a challenge for the uninitiated. A fourth Gotcha resides in the Equipment Floaters carried by Marine Contractors, among others. Floaters are meant to cover our Equipment and Tools that move from site to site and barge to barge as needed and are as close to providing ?All Risk? coverage as we are going to get these days. Covered Equipment can range from employee?s hand tools to $800,000 crawler cranes working off a deck barge. So, you can imagine the surprise when the policy contains an exclusion for Waterborne Equipment. Our fth ?Gotcha? relates to berglass production boat builders. Builders will buy Property and Business Interruption insurance to protect their assets. And they may well insure their Boat Molds on the same premise. Indeed it can be argued that the Molds are the more valuable asset in terms of revenue stream. Buildings are relatively easy to replace in the current market. Molds, though, are crafted to very close tolerances, and for each production line or model there will be multiple molds to be replaced for the hull, deck, hatches and rudders. It is common to insure the Molds under the Marine policy with its more exible terms of coverage. The ?Gotcha? is that the Business Interruption coverage on the Property policy will not extend to the Molds insured on the Marine policy. GOTCHA FIXEach of these ?Gotchas? have policy solutions. Endorsements added, clauses deleted, a word or two crossed out; all of which unfortunately increases the policy?s complexity. But the larger solution may just be one of education and information. By shining a light on these aspects of Marine insurance, they move from ?Gotcha? status to the known, and then can be dealt with. Rely on experienced Marine insurance brokers: a Marine specialist will identify the Gotchas in the standard coverage forms and discuss with you how they will be addressed. They will then work with underwriters to craft a policy that roots out the ?Gotchas? and provide coverage that ts your business needs. In the meantime, are there other ?Gotchas? out there? You bet. These ve examples are by no means the only ?Gotchas? lurking out there. Perhaps you have been bitten by one or know someone that was. If you would like to share your experience please let me know. We can start cataloguing them, make them available and shine a light on them. ?Each of these ?Gotchas? have policy solutions. Endorsements added, clauses deleted, a word or two crossed out; all of which unfortunately increases the policy?s complexity. But the larger solution may just be one of education and information. ?www.marinelink.com MN 21
