Salvage Operation... Really?

T

TMK988

New Member
Sep 17, 2009
118
Lloyd Harbor, NY
Boat Info
290 Sundancer 2006
Engines
Mercruiser
This really surprised me. Some of you may remember a few weeks ago my 290DA broke loose from my mooring and wound up on a beach. My insurance company, BoatUS, is doing all the right thing. Although the boat looked to me to be in fairly good shape, they are cutting a check for almost $6800 to my mechanic (this guy is beyone honest) and almost $6500 to a fiberglass guy! All for a $20 substandard part on the mooring. Anyway, here is what is freaking me out. They are paying the towing guy, I believe he is their towing guy, BoatUS, $4600. Here is what he did. I was present for the whole 'Salvage' operation. He came out in that little towing boat these guys have and had me lower the outdrives. Then he put a rope through that 'D' hook in the front of the boat. He stayed on his tow boat until the tide came in. At this point, I could have pushed the boat into deeper water! He gently dragged my boat out into deeper water, squared away his lines and then towed my boat across a small bay to a landing where it was picked up by a land hauler. I actually addressed this issue with the representative at BoatUS, of course, he was the one who told me how much they paid the towing guy (the rep. was very gracious) and when I told him that I was horrified at how much he had paid for what sure seemed like a simple operation to me, he defended the payment. Basically, he said that IF the boat had a hole in it and started to sink, then the insurance company would have to rely on his expertise to keep that from happening. I suggested that maybe BoatUS could just pay for the hauling and then pay the salvaging fee IF the boat actually was sinking. I am not complaining here as this cost me nothing and BoatUS has treated me wonderfully (I am renewing my policy today)... the towing guy was also terribly gracious, but I feel that they had been taken advantage of and I really don't want any of my insurance companies (car, health) to get ripped off. In the end, you and I will eventually pay for that.
 
Find the thread that I started on this whole rescue or salvage fee business. :smt021
 
I couldn't find the thread Wayne mentioned, so apologies for any redundancy. From time to time I work as an expert witness on litigation involving companies in my industry. Most of the time the legal effort is paid for by insurance, so I have a pretty good level of experience working as a professional contractor to insurance companies.

I can say with complete confidence if the insurance company was willing to pay $ 4800.00, then $ 4800.00 is not only the competitive going rate, but also the lowest possible rate given the circumstances for the services provided. That doesn't answer the why it cost $ 4800 question, but should put to rest any thoughts somebody was being taken advantage of.

I realize it looked like a simple thing to do and maybe in your case it was simple. But the fee being paid is for removing a grounded boat that may be damaged without causing any more damage to either the boat, others, or the environment. So in a sense the fee being paid is also for not what happened; e.g. the boat did not sink, it did not create an oil slick, and no one was hurt.

Henry
 
Wayne, I bet you would have done it cheaper!
 
Carefully read Henry's 3rd paragraph..........

Towboat operators generally, and Towboat/US falls in this category, are bound by a reasonably simple principle.......if the occupants and vessel are safe and are not in danger or personal injury, then it is considered a soft grounding. The towboat operator hooks up a line and you are towed to the nearest safe harbor and you or your insurance company are billed a flat rate of something like $225-$250/hour for their time, from their dock to your boat, towing your boat then returning to their dock.

If however, the boat is at risk of serious damage, the occupants are at risk of serious injury, if there is a serious risk to the environment, or if there is a risk to un-involved 3rd parties, then the tow operator can call your situation "salvage" and not a soft grounding. Reputable towboat operators will hand you a contract for salvage, explain it to you and ask you to indicate your agreement that yours is a salvage situation by signing the contract. In a salvage the tow operator can charge you a % of the value of your boat as compensation for his effort and assuming the risk of aiding you or your vessel.

Your insuror most likely weighed the potential liability of a loose boat in a tidal area against the salvage fee and decided to accept the salvage and avoid the liability.

Probably doesn't make you feel any better, but that is the way it works.
 
The insurance guy gave me an answer very similar to what Henry said. It seems to me that there should be an esclating scale for this type of thing. Had I not had insurance, I would have been able to take care of this myself quite easily and safely. The price paid was simply exhorbatent. The tow guy couldn't have spent more than two hours on site and most of that was waiting for the tide to come in.
 
Wayne, I bet you would have done it cheaper!
Click to expand...
Yep, A beer & thank you goes along way with me. . :thumbsup:

I'm not the money hungry grub that some on here thinks I am. :smt013
 
These rates are probably pre negotiated for different situations.
As with most things in life; sometimes the bear bites the tow guy, sometimes the tow guy bites the bear.
Sounds like the tow guy bit the bear this time.
 
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