Insurance Explained
By Al Waters
NAMBA Executive Secretary
As we begin the new year of model boating, I thought it
might be a good time to provide a reminder of just what our
insurance coverage is all about. NAMBA membership provides
you with liability and property damage coverage in the
unfortunate event that your boat should be involved in an
accident in which a spectator is injured or damage is done to
someone else’s property. This coverage is $1,000,000 per
occurrence and $2,000,000 aggregate. Of course, this does not
cover damage done to another model boat in the normal course
of running. This coverage is primary coverage, so you do not
have to look first to your homeowner's policy for protection as
is the case with some of the other boating organizations. It is
individual insurance which protects when you are running at
NAMBA site insured lakes and ponds. Please keep in mind that
you are also expected to be complying with all local and state
laws and restrictions. If you
are running a boat on a lake on
which you are trespassing, or
is not NAMBA site insured,
you will not be covered.
Several years a go, the
NAMBA Board of Directors
authorized the addition of a
$1,000,000 umbrella policy to
add to the above mentioned
coverage's.
In addition, NAMBA offers site insurance coverage to
protect the owner of the running site with the same $2,000,000
as is afforded the individual member. This is required for the
individual members insurance to be in effect. Some cities and
site owners require this additional coverage. Registered clubs
may purchase this coverage at a cost of $50.00 per year.
However, please keep in mind that NAMBA site insurance
provides insurance for, and names as an additional insured, the
site owner only when the accident involves a NAMBA member.
We do not provide general liability coverage for site owners for
all possible hazards which can occur at their lake, but merely
for those caused directly or indirectly by an insured NAMBA
member. In addition, this coverage does not cover the site
owner if an uninsured boater or a boater who has insurance
through another organization causes an accident at the site.
And yes, NAMBA's coverage is in effect any time you are
running at a site with NAMBA site insurance and not merely at
sanctioned events. This includes practice running or
unsanctioned club or fun events. Of course, coverage would not
be valid if you are blatantly breaking one of the NAMBA safety
regulations, such as operating a boat while swimmers are in the
water, running while other full size water craft are in the water,
or consuming alcoholic beverages or illegal drugs while running
a boat. In addition, NAMBA insurance does not cover you
when you are participating in a sanctioned event of any other
organization which has its own insurance coverage, whether
primary or secondary. So make sure that you are confident that
the coverage provided by the sanctioning club or organization is
sufficient to protect you during that event, as you will not be
able to rely on your NAMBA insurance if it is not.
For a current list of sites and locations that have been
NAMBA pre-approved with site insurance, please refer to the
NAMBA web site under Resources/Insured Sites. It is updated
daily. When a current year has expired, the site insurance
expires and effective January 2 of the following year, the list
will clear and a new site insurance coverage certificate must be
applied for by one of the local NAMBA registered clubs.
NAMBA insurance also provides you with a $500,000
personal accident policy which covers injuries which you may
incur while running your boat or while assisting someone else
with their boat. In the past, this has covered such injuries as a
cut hand, or torn ligaments suffered when a boater slipped on
the mud in the launch area. This policy is secondary insurance.
That means that if you have health insurance at work or through
a family member, NAMBA insurance will expect your primary
policy to pay first. Then, once your primary policy has paid
what it covers, NAMBA’s secondary policy goes into effect.
This would cover such things
as deductibles, amounts over
the policy limits, etc. If you
do not have health insurance
of any kind, NAMBA’s policy
covers you the same as if it
were a primary policy.
Keep
in mind to be able to qualify
for this medical coverage, an
accident must be reported to
the NAMBA office on a
timely basis upon injury.
There are of course deductibles on both of these coverage's.
$500 on the liability coverage, and $100 on the personal
accident coverage. However, in the past, NAMBA has been
able to pick up the cost of these deductibles, and we assume we
will continue to do so in the future as long as funds permit.
As you can see, your NAMBA insurance provides you with
the best protection available through any of the model boating
organizations. Hopefully, you will never have to make use of
this coverage, but if you do, you can be assured that you are
covered. Continued availability of this exceptional coverage is
of course to some degree up to you. Make sure that you are
aware of all of the safety regulations, and use common sense in
your running. Preventative medicine is always better than
having to resort to a cure. By avoiding needless accidents, we
can insure that the coverage will be available when really
needed.
PROPWASH
April 2017
7
