Given the insurance problems everyone is having, I thought I'd see if there is enough interest and/or expertise to pursue an AYOG self-insurance program.
Pat (Shenanigans) and I have talked about it a little. Here's the gist of what we discussed:
1. A buy-in of some percentage of your boat's value that would be enough to cover the first year. For example, a $300,000 SM owner might pay 2% or $6,000. If we had 200 similar owners, we'd have $1,200,000 to pay out.
2. It would' be a high deductible coverage designed primarily to pay for total loss. Maybe something like 20% of the boat's value.
3. The most common claim would probably be lightening damage, which often amounts to $50,000 or more. Our plan might pay for half of a major claim like that?
4. Boat's would have to be out of the hurricane zones during the season. Any other restrictions?
5. Yearly Assessments could replenish what was paid out Or we could continue to pay in until the principle was self-sustaining. That would require investing the funds and a whole added layer of complexity.
6. A rotating Board of unpaid members would oversee the plan (maybe a LLC?), and an administrator would be hired to do the paperwork.
7. Owners would purchase their own liability insurance.
This is all just a very rough framework that can be built on, scrapped and something else adopted, or what ever seems appropriate. Any and all thoughts and suggestions are encouraged. I'm hoping we might have an owner or two that have some insurance or legal expertise to help us understand the potential pitfalls and options available.
Thanks for your ideas.
S M 243