AWSA APPROVES TOWBOAT USE REIMBURSEMENT

By USA Water Ski & Wake Sports | April 09, 2021, 10 a.m. (ET)

The AWSA board of directors approved the following policy to reimburse all boat owners for towboat use in AWSA sanctioned events, effective for the 2021 season. A Local Organizing Committee (LOC) must reimburse a boat owner(s) for costs incurred due to use of a boat for any event (excluding Regionals and Nationals) on an hourly basis. This provision includes promo boats, individually owned boats, club boats, etc. The recommended minimum reimbursement rate is $25 (Twenty-Five dollars) per hour of use recorded from the boat’s hour meter. The boat must be an Approved Tournament Towboat with valid insurance as required by USA-WSWS. The boat owner has the option to decline reimbursement and/or make other arrangements. All payments from the LOC to the boat owner are reimbursement for costs incurred and not compensation for tax purposes. Reimbursement by the LOC to the boat owner is separate from any consideration a towboat owner may receive from a manufacturer. The board asked the Risk Management Committee and our USA-WSWS general liability insurer if a boat owner receives reimbursement as outlined above could the boat owner’s insurance be adversely affected? Our USA-WSWS general liability insurer believes that the $25.00/hour reimbursement for expenses should not create an insurance coverage issue, however they suggested that you confirm with your insurer that any reimbursement for expenses will not affect your insurance coverage. Separately, we confirmed with Global Marine that the Geico Policy which specifically provides coverage for boats used in AWSA sanctioned events is not impacted if compensation or remuneration is provided to the boat owner if the policy incudes USA-WSWS as an additional insured. As a reminder, every boat owner providing a towboat for use in an AWSA sanctioned event must have a valid insurance policy as described below. Insurance Requirements (for motorized boats used during USA Water Ski & Wake Sports sanctioned events): Each boat owner shall provide and maintain, at the boat owner’s expense, the following insurance for claims arising out of the use and operation of the owner’s boat in connection with a USA-WSWS sanctioned event: (i) Watercraft Liability insurance with limits of not less than $500,000 each accident for bodily injury and property damage arising out of the use and operation of the boat. Said policy shall include the following parties as Additional Insureds: USA-WSWS, its sponsors, directors, employees, volunteers, members, clubs, associations, sport disciplines & divisions. (***see Note 1 below regarding excess watercraft liability insurance benefit for boat owners through USA-WSWS***) (ii) Watercraft Physical Damage insurance covering the boat, motor(s), trailer and any additional equipment (such as electronics) on an agreed value basis in the event of theft, loss or physical damage. The boat owner may elect to self-insure this exposure at the boat owner’s sole risk and expense. (***see Note 2 below***) All such insurance required above shall be (1) primary to and non-contributory with any insurance maintained by USA-WSWS for losses arising out of use and operation of the boat in connection with a USA-WSWS sanctioned event; and (2) shall be written by insurance companies with ratings of “A” or better in the latest edition of the A.M. Best key rating guide. Certificate of Insurance Prior to use of any motorized boat in connection with a USA-WSWS sanctioned event, the boat’s owner must provide a Certificate of Insurance to the Club (or Local Organizing Committee) and USA-WSWS certifying that the appropriate insurance is in place and that the policy meets the insurance requirements as set forth above. Certificates should include the following: Certificate Holder: USA Water Ski & Wake Sports, Inc. 2701 Lake Myrtle Park Road Auburndale, FL 33823-9360 Additional Insureds: USA Water Ski & Wake Sports, Inc., its sponsors, directors, employees, volunteers, members, clubs, associations, sport disciplines & divisions. The boat owner shall provide at least thirty (30) days prior written notice to USA-WSWS if any of the required coverage is cancelled or materially changed.

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