AWSA Approves Towboat Use Reimbursement

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.

***Note 1: Excess Watercraft Liability coverage benefit for boat owners during a USA-WSWS sanctioned event***

Boat owners who satisfy the minimum boat insurance requirements will be eligible for excess watercraft liability coverage through USA-

WSWS’s General Liability and Umbrella/Excess Liability policies while the owner’s boat is being used during a USA-WSWS sanctioned event.

***Note 2: Maximum Reimbursement in the Event of Theft, Loss or Damage during a USA-WSWS sanctioned event***

In the event of theft, loss or damage to a boat, motor(s), trailer and any related equipment during a USA-WSWS sanctioned event, the

boat owner may submit a request to the USA-WSWS club (or local organizing committee) for reimbursement of up to $750 for the deductible

under the owner’s policy, the actual cost of repair or replacement, whichever is less, subject to a total maximum reimbursement of $750.

Amounts in excess of the maximum reimbursement are the responsibility of the boat’s owner.

[Note: The following are not eligible for reimbursement as damages: Cleaning Costs, Normal Wear and Tear, Gradual Deterioration,

Marine Life, Vermin, Insects, Marring and Denting, Osmosis, Blistering, Manufactures Defects, Mold, Ice and Freezing, etc.].