Marine Salvage and towing question:
I had a question about marine salvage and towing. One thing that always bothers me while boating is having a problem at sea and needing a tow. There is a frightening story of a boat owner who abandoned their disabled boat and opted to ride on the towboat. Seems harmless enough, but the story goes on that the person providing the tow, claims the crippled boat as salvage. Is this some sort of urban legend or can this happen?
Answer:
I have heard the same type of stories. Ultimately, there is truth to the story. Marine salvage has been around for a long time. It is a way to financially compensate or reward other boaters for helping crippled or disabled boats. Salvage laws took effect a long time ago when most of the boats on the ocean were moving cargo. The captain of a ship on a paying voyage was reluctant to go out of his way to help if there was not some sort of payment or reward.
In a quick summary, to claim salvage there are three basic requirements. The vessel has to be in peril. It has to result in a successful rescue of people and property. And the rescuer has to do the job voluntarily. In these cases, the rescuer can request payment from the owner. Usually the type of risk, size of the boat, etc. will establish the salvage reward. Typically, it is a percentage of the “salvage” value. Salvage situations like this are not just for the big boats. Almost any boat or vessel on navigable waters can be subject to this salvage claim (except if the boat is on a pond or small lake).
It is always a good idea to check into buying emergency towing coverage either through a separate policy or buy the additional coverage with your existing marine insurance policy. Typically, towing coverage is calculated on an hourly rate compared to a percentage of the salvage value. If you have time to call and contract a vessel towing service, get a copy of their agreement and what they will charge per hour to tow your vessel.
Some insurance policies will include towing coverage. Make sure the amount of emergency towing coverage in your policy will be appropriate for the locations you will be using your boat.
If you do not have emergency towing included on your policy, you should look into buying a separate policy to provide that service. The difference between marine salvage and towing is something all boaters should look into. Make sure you discuss the coverage with your agent or the organization from which you purchased the coverage.