Case Study
The photo above is from a survey report we reviewed for a client. We noticed that this boat was fitted with stainless steel rod rigging, which was unknown to the underwriter since it was not mentioned in the report.
This type of rigging has a more critical inspection and maintenance cycle than standard wire rigging. Rig failure and dismasting can be the result of improper or deferred maintenance.
Being aware of this critical issue was vital to properly understanding the potential hazards associated with this risk. That would not have happened without the trained eye of an expert.
The Marine Survey Profession is unregulated and unlicensed. While SAMS and NAMS have strict entry and continuing education requirements, all surveyors are not created equal. And some of the other organizations who hold themselves out as “professional” are simply “pay-to-join” outfits with minimal background and experience required for membership. Besides the individual surveyor’s background and experience, his or her ability to communicate effectively, in writing, is not always up to par.
Marine Survey Reports, traditionally the primary basis for risk assessment, can have a host of issues limiting their reliability to the underwriter. The work product from marine surveyors can be inconsistent and/or incomplete, for a variety of reasons. When that happens, the underwriter is faced with the dilemma of whether to accept a sketchy report, try to interpret a sub-par report, or to require that the client pay for another report. Asking an existing client to pay for a second marine survey can compromise a relationship and ultimately cost you a loyal customer.
Besides condition and value issues, since most of the Standards that apply to the safe construction and operation of pleasure craft are voluntary, the underwriter is forced to serve as the “Authority Having Jurisdiction.” Compliance with the pertinent standards and regulations can mean the difference between an acceptable and an unacceptable risk. Prioritizing survey report recommendations and determining which ones need to be required to bind coverage can be yet another challenge to someone who doesn’t possess a solid technical background.
Let us assist your underwriting team in “reading into” and interpreting survey reports so that you can accurately determine whether a given risk is a good match with your underwriting guidelines. We can prioritize the recommendations, and provide an informed opinion as to which ones are critical to the mitigation of hazards.