Towing vs. Salvage
Understanding the difference between towing and salvage can save boaters money and aggravation.
Legally, salvage is defined as any voluntary and successful rescue of a boat and/or its cargo from a peril at sea.
Some insurers, however, narrow the definition.
They want to know when contracting for towing services on behalf of its members, many require that marine assistance companies distinguish between simple towing and/or soft groundings, and the more serious and expensive salvage efforts where distress or danger exist.
This distinction between towing and salvage is often reflected in the different types of programs available to boaters.
Towing assistance coverage typically provide for help for breakdowns and light groundings. The far more expensive salvage claims are covered only by yacht insurance policies.
If the salvor wants to do the job but does not know what the cost will be but will make claim afterwards, the final amount will be decided one of three ways -- negotiation with your insurance company; binding arbitration, (a low-cost option available to any boat owner, insurance company, and marine assistance company) or, lastly, through litigation in federal admiralty courts.
All boaters should review their marine insurance coverage. The best protection against a large salvage bill is adequate insurance.
Hint: Boaters whose livelihood depends on their vessel should make sure the policy provides for salvage up to the full value of the boat, not a percentage of its value, and that there is no deductible for salvage costs.