The Rationale For Liability-Only Insurance (Tuggers Vol. 60)

By Bob Allnutt, Victory #2
mylabsargent@yahoo.com

I recently decided to drop Victory's comprehensive insurance in lieu of a liability only policy. With the $500,000 liability policy (through Progressive) it pays me nothing should I damage my own boat but covers up to $500,000 for damages to someone else's property, $5,000 for each person and $500,000 for fuel spills.

I plan to use some of the $1,100 in annual savings to make my tug as safe as possible. I am primarily coastal cruising and I think the major reasons my tug could be severely damaged or sunk are due to: fire; flooding; or hurricane. Here's my plan to mitigate those risks.


Fire: I have five fire extinguishers on board, including a halon Fireboy (now called a Fireperson) in my engine room. All of these are routinely inspected. I always turn off the propane gas at the tank and solenoid when I am finished cooking. Additionally, I have a smoke and CO2 detector.



Flooding: My major concerns are the below-the-waterline through hull fittings, almost all of which are impossible to reach, and the bow thruster. I want to design a system that will replace four through hulls with one; very much like a sea chest. I inspect the bow thruster's tube and motor mounts on a regular basis and I am in the process of assembling a damage control kit to seal the thruster in case it leaks.

I routinely check the engine, engine room and bilges every hour or so when I am underway. I use a Last Drop shaft seal that seals a stationary unit to the spinning shaft with a graphite bearing. I check the shaft seal bearing every time I go out with a infrared thermometer to ensure it is not overheating and inspect the rear bilge.

I have one automatic bilge pump, one electric manual bilge pump, and one manual pump under the galley sink. If there was major flooding, the manual hand pump is of little help because I typically single hand my tug and suspect I would be too busy trying to stop the leak to man the pump. I test the automatic and electric pumps routinely and periodically inspect the manual pump’s bellows. Currently I do not have a high water alarm, but I am designing one with an intensive sounding device (since I am a bit hard of hearing).


Hurricanes: My tug is in a protected creek on the Chesapeake Bay where I will employ two or three anchors in the event of a major storm.

Like anyone who elects to self-insure their boat, I am taking a calculated risk that I believe will work for me. I chose Progressive Insurance because it does not require a survey and is the least expensive. Boat US also offers a liability policy, they require an in the water survey and it costs more, but they offer better coverage. If anyone has any ideas for a sea chest, damage control kit, or anything that will make a tug safer, I would welcome your inputs.