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Salvage and towage costs

Boat insurance term, area: Hull

Salvage and towage cover the cost of recovering, towing and securing a boat after a casualty. These costs come on top of the damage to the boat itself and can exceed it, especially in remote cruising grounds without local infrastructure. A salvor working under a salvage agreement such as Lloyd's Open Form can claim an award based on the value saved, which is why the limit in the policy matters.

What to check: Are salvage costs paid within the sum insured or in addition to it, and is there a separate limit? Does the policy ask the owner to contact the insurer before signing a salvage agreement?

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