I felt the sickening crunch of fiberglass hitting coral before the boat abruptly stopped, throwing everyone to the deck. We were stuck hard on a reef at low tide, taking on water. When the yellow tow boat arrived, the captain didn’t hand me a tow line; he handed me a laminated contract and said, “This isn’t a tow, it’s a salvage job.”
Key Takeaways
- “Peril” Defines the Price: If you are floating and just out of gas, it’s “Towing” ($300). If you are hard aground or taking on water, it is “Salvage” (10-20% of the boat’s value).
- Don’t Sign “Lloyd’s Open Form” (LOF): This contract allows the salvor to name their price later based on the value of the vessel saved. It is a blank check.
- Tow Memberships Have Limits: Your Sea Tow or BoatUS membership covers towing. It does not pay the $15,000 salvage bill. That comes from your Hull Insurance.
- The “Soft” vs. “Hard” Grounding: If one engine can pull you off, some policies count it as towing. If they need to deploy anchors or float bags, it is unequivocally salvage.
The “Why” (The Trap)
The trap is the Legal Distinction of “Salvage.”
Maritime law allows a rescuer to claim a “reward” for saving a vessel in peril. This isn’t an hourly rate; it’s a percentage of the hull’s value.
Your “Towing Membership” (like AAA for boats) explicitly excludes salvage operations. You need to check your Hull Insurance Policy for the “Salvage and Wreck Removal” clause to ensure it covers the full hull value, not just a small sub-limit.
The Investigation (I Called Them)
I compared how the big memberships and insurers handle this nightmare scenario.
BoatUS (Geico Marine)
- The Membership: Their “Unlimited Gold” towing membership pays for soft ungroundings.
- The Insurance: If the situation escalates to salvage, the Geico Marine insurance policy kicks in.
- My Analysis: They own the towing fleet (TowBoatUS), so the transition from “tow” to “salvage” is smoother, but you still pay a deductible on the salvage claim.
Sea Tow
- The Membership: Strictly a service provider. They do not sell insurance directly (though they partner).
- My Analysis: If a Sea Tow captain declares salvage, he is switching hats from “Club Service Provider” to “Independent Salvor.” He is looking to get paid by your insurance company.
Progressive
- The Policy: Their “Sign & Glide” is for towing. Their Hull coverage handles salvage.
- My Analysis: I found their claims team to be strict on the definition. If you are on a jetty, it’s a hull claim. Expect your rates to skyrocket next renewal.
Comparison Table
| Scenario | Towing Membership Covers? | Hull Insurance Covers? | Cost to You |
| Out of Gas / Dead Battery | Yes (100%) | N/A | $0 |
| Soft Grounding (Mud) | Yes (Usually) | N/A | $0 |
| Hard Grounding (Reef/Hole) | NO | Yes (Salvage Clause) | Deductible |
| Sinking at Dock | NO | Yes | Deductible |
Step-by-Step Action Plan
- Clarify Status Immediately: Before he throws the line, ask the captain: “Is this a tow or a salvage?” Turn on your phone recorder.
- Negotiate “Time and Materials”: If he says salvage, try to agree on an hourly rate (e.g., $400/hour) rather than a percentage of value.
- Call Your Insurer: Get the claims department on the phone while the boat is stuck. They can authorize the salvage and sometimes negotiate with the tow captain directly.
- [IMAGE: Photo of a tow boat pulling a grounded vessel, showing the taut line]
- Check for Leaks: If the boat is taking on water, it is automatically salvage (Peril). Focus on safety, not the bill.
FAQ
Does my $500 deductible apply to salvage?
Yes, usually. Salvage is a hull claim.
What if I refuse the salvage?
You can, but you have a duty to mitigate damages. If you leave it there and it breaks up, insurance might deny the total loss claim because you failed to act.