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BROCHURE: UNDERSTANDING THE ISO WATERCRAFT POLICY

(January 2023)

The ISO Watercraft Policy is designed to provide protection for a broad variety of watercraft property. It also responds to losses related to liability connected to the use of such property.

Consult the policy for definitions and limitations. The terms of this brochure do not represent contract terms. The policy is subject to company underwriting practices.

WHAT IS COVERED?

The ISO Watercraft Form Policy protects you in several ways.

• Property Coverage on watercraft of any standard type and trailers directly protects your assets. Deductibles should be as high as you can comfortably absorb to maximize the protection provided relative to the premium cost.
• Liability Coverage insures your legal obligations that arise from an accident, including lawsuits and their related costs. The limits you purchase should be high enough to handle the potentially serious injuries and loss of earnings a victim may sustain.
• Medical Payments coverage which handles expenses for medical treatment related to watercraft accidents suffered by occupants and others.
• The policy offers added coverages for loss of personal effects and to help with the expense of salvaging or handling a damaged watercraft (such as towing, clearing wreckage, etc.).

WHAT IS NOT COVERED?

Every insurance coverage form or policy has limitations and exclusions. This is because the type of losses involved are either handled by other forms of coverage or the risk or exposure to loss is not considered insurable for one or more reasons. The ISO Watercraft Form Policy has a number of exclusions. Some of them are:

• Intentional Acts
• Bodily injury suffered by policy’s named insureds or relatives
• Nuclear Energy
• No coverage for loss of or damage to property that is rented to, cared for or used by anyone in the insured household
• Workers Compensation, the Jones Act or other coverage sources
• No protection for property that’s lost or destroyed when it is rented to others
• Business uses
• Non-permissive users
• No racing activity
• War or military activity
• Due to wear and tear

Always review the coverage form carefully for other limitations and details of the exclusions.

WHAT ARE THE CONDITIONS?

You have important duties to perform following a loss. Some of them are:

• Notification
• Assist with various parts of claims process
• Full Cooperation with Insurance Company
• Preservation of Property
• Notifying Police

You and the insurance company are in a contractual relationship and therefore both of you have important obligations. Some of them are:

• Change, Modification, or Waiver of Policy Terms
• Abandonment of Property
• Misrepresentation, Concealment, or Fraud
• Financial Responsibility
• Lay-Up Period
• Fraud
• Legal Action Against the Insurer
• Termination of Policy
• Policy Period
• Territory

WHAT ABOUT ENDORSEMENTS?

A number of endorsements are available for use with the ISO Watercraft Policy that broaden, limit or exclude coverage.

REPRINT PERMISSION

PF&M subscribers are permitted to reprint any portion of this brochure for their boatowner insurance customers. Other uses require permission from The Rough Notes Company, Inc.