Claims guidance for boats–Part III
Underwriters are not obliged to make advance payments for repairs or pay contractors directly, except in special situations. They will compensate the boat owner for the costs of the loss to pre-accident conditions. However, the owner shoulders the costs in the first instance.
Whenever possible, contact the insurance company before accepting salvage services from another vessel. When this is not practicable, as in many cases, accept only if the offer appears reasonable and if the terms are clear. Otherwise, leave remuneration and binding contracts for later. Signing a Lloyd’s Open Form Salvage Agreement should only be a last resort.