Now, some captains have a greater grasp of insurance issues
than others- granted; but on Friday last a captain called me to discuss a basic
insurance issue. He didn’t fully grasp
the concept and kept asking questions that did not apply to his owner’s
situation or scenario. I asked him if
he’d like me to discuss this with his owner via a conference call and he said,
“No – I’m shopping the insurance. I
don’t want to bother the owner with this silly stuff.”
“Silly stuff.” Hmmm…
The ONE thing the owner has that puts its money where its
mouth is. The ONE thing that, if done
correctly, will pull an owner’s financial butt out of the fire faster than any
captain. The ONE thing that, if done
wrong, a captain can walk away from leaving the owner to pay the tab.
Folks, insurance is not “silly stuff” and it certainly
should not be attended to by anyone not qualified to do so or by anyone who thinks
it’s “silly stuff.”
There are a number of reasons why unqualified people should
not step outside their area of expertise, but I’ll leave the common sense
arguments alone and focus on the legal aspect.
Florida statutes state that unless you are licensed
insurance agent it is unlawful to engage in insurance activities:
69B-222.060 Unlawful Activities by Unlicensed Insurance Personnel
The following actions are never allowable by unlicensed personnel.
(1) Comparing insurance products; advising as to insurance needs or insurance matters; or interpreting policies or coverages.
Note the phrase “never allowable.” Not a whole lot of grey area there.
There is a reason for this. It is because insurance professionals know
insurance and understand the ramifications of an improperly structured
insurance policy. We know the financial
consequences of coverage gaps or coverage exclusions. We know how to explain the product and (in some cases) we have the authority to make statements and assertions on behalf of an insurer.
And think about this:
A unlicensed captain behind the wheel of an insurance policy is just as financially
dangerous as an unlicensed insurance agent behind the wheel of a yacht. And when things go wrong it’s the owner who
is screwed. Insurance professionals get
this – captains may not.
Captains should not counsel owners on insurance, make
insurance determinations, base insurance decisions on cost, negotiate insurance
contracts, negotiate any contract with insurance conditions, etc… It’s outside their area of expertise no
matter how many times they tell you, “I’ve been doing this for years,” because I’ll tell you all one thing right now: Dedicated insurance professionals have
forgotten more insurance than most captains will ever know.
I’ve said it before and I’ll say it again: do what’s right by your owners and ALWAYS
refer them to a qualified insurance professional. And if a captain is spouting off insurance
information ask him/her to produce an insurance license, E&O insurance and confirmation
of a selling agreement with an agency or insurance company. Otherwise, kindly thank him/her and get your
insurance counsel from someone qualified to provide it.
