Re: Self Insurance


Brent, Thank you for that great offer. It would be a great way to determine interest AND to find out claim information for the last decade or two. It could also be presented to insurance companies if we ask about group coverage.
Initially, poll questions might include:

2. Hull Number
3. Year boat built
4. How long owned by current owner
5. Cruising experience
*Years sailing
*Nautical Miles Sailed
*Cruising ground in past
*Future Sailing Plans
6. Last Out of Water Survey
7. Any Insurance Claims
*Amount of claim
*Amount recovered
8. Are you interested in participating in a group insurance plan or a self-insured plan for members only?

Anything else we should ask?

Even if some owners are not interested, please complete the poll. Your personal information would not be revealed if that was requested.

Thanks again, Brent.  Contact me personally while we design the poll.

I don't do Facebook, anyone like to volunteer to steer those folks to this poll?

SM 243

On May 18, 2020 8:56 AM, "Patrick McAneny via" <sailw32@...> wrote:
This is a rough outline of a self insurance or shared risk co-op, that I sent Kent and thought I would share with the group. It was prompted by the hassle I have had with obtaining insurance, the restrictions and expense.  Bill suggested self insuring and just buying liability insurance, however in the event of a total loss, it would be a big financial hit, that I could not afford. However, if I could share that risk with even ten others or better yet many more, it would soften the loss. When you consider how few Amel's have been lost outside of a hurricane zone, the risk seems very low, and yet we need to insure against such a great financial lose.

1. A  LLC. formed
2. An administrator and board to accept membership ,assess deposit amount , administer funds and assess claims.
3. A one time deposit could be a percentage of agreed fixed value, perhaps 2 or 2.5% ,eg. $200,000 boat would amount to a $5000 deposit into the fund
4. Coverage would be for total loss , fixed value minus say 10% deductible. Figuring most owners could absorb some loss ,and insurance companies have deductibles as well. Hurricane zones excluded.
5. Perhaps lightning strike coverage , perhaps coverage would be ,replace with new equipment ,minus a 30 % deductible.This would probably be the largest source of loss. May have a surcharge or higher deductible for Florida locations.
6. All funds would be in an interest bearing account,if you can find anyone paying interest.
7. Upon leaving the group , the owner would receive a 50% refund of his deposit assuming they had no claims. 
8. Perhaps a .20% of fixed value annual fee to go to cost of administration .eg. $3000,000. boat x.20% = $600. annual fee
Assuming 200 owners/members at average boat value of $300,000 x 2.5 % = $7,500 deposit or $1,500,000.00 in funds.
a $300,000. loss of a boat would break down to a loss of $1,350. for each of the 200 members.
This could even work on a smaller scale . If ten owners shared responsibility for loss. $300,000 minus deductible of 10% ,would be $ 270,000.000 divided by ten owners or $27,000 per owner. Its all about spreading the risk.
I wonder why no group has formed a risk co-op as yet. Maybe because insurance used to be less restrictive and more reasonably priced .
Stay Safe,
SM 123

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