Marine Investigations

Clientele

There are an estimated 22 million registered pleasure boats in the U.S., the vast majority of them under 20 feet in length, and probably many more that are not registered.

The size of boats that marine investigators become involved with is usually in the over 20 foot category.

Fortunately boat owners are not the only potential clients for his services, and fortunately for us boats tend to generate lots of trouble for both their owners and others who come in contact with them, for boats are status symbols that their owners often cannot afford.

And there the trouble begins. The number of potential clients is greatly expanded by those who have legal claims against boat owners.

Insurance Companies

Insurance companies comprise the largest group of clients for marine investigators.

While some of the larger marine insurers have staff surveyors, the majority of insurance companies that insure boats do not have marine claims specialists on staff; therefore, they hire independent marine surveyors who are located in proximity to where the casualty occurred.

Obtaining the business of major insurers is not easy, for the competition is fierce.

Once a company becomes satisfied with the work of a surveyor, they tend to remain partial to that surveyor. Like all of us, they prefer to “know” the person they are working with.

Gaining an account with an insurer, particularly a large one, usually means a steady flow of work, something highly prized by surveyors.

Insurance companies usually look for a surveyor to be certified by one of the two surveyor societies, NAMS or SAMS.

Traditionally, the role of surveyor-as-investigator is to perform “without prejudice.” That simply means that his obligation is to conduct his investigation without regard to the interest of the client or any other interests that may be involved.

This phrase is rooted in traditional commercial marine survey practice that is no longer relevant to pleasure craft issues. Despite the fact that the term is widely used, it does not have any legal standing.

Insurance companies expect their surveyor/investigators to be unbiased.

Do not assume that insurance claims supervisors take steps to attempt to avoid paying claims; in the author’s 35 years of experience, he has never seen that happen. This, despite lawyers and politicians attempts to paint insurance companies otherwise.

Unfortunately, too many supposedly unbiased marine surveyors and investigators take advocacy positions, essentially becoming advocates for hire. This is especially prevalent with surveyors who represent owners.

The consequences for the investigator is a reputation as a hired mouthpiece for those who advance illegitimate claims.

While one can carve out a profitable career as a professional advocate, he will never obtain a reputation of credibility and fairness, and will never be able to profit as an expert witness, for only a fool of a lawyer would want to hire a liar, and there aren’t many of those regardless of what we might think of lawyers generally.

Good lawyers prefer an honest witness over a pliant one, because the liars are almost always exposed in court. It’s funny thing about lying in court: Only the perjurer seems unaware that no one believes him.

The insurance company has an obligation to pay legitimate claims and to deny those that are either illegitimate or not covered.

This impartiality is reflected in the laws of most all states that require insurers to make “reasonable” investigations, though a few states have laws that are stacked against insurer.

When we understand that insurance is a form of socialism wherein participants willing pool their resources (premiums) in return for a guarantee of indemnification for certain losses, we begin to see that insureds who abuse the system do not merely injure the insurance company, but also all those who participate.

This is why so many companies contain the word “mutual” in their names, for it denotes that the cost and degree of risk is indeed, mutual of all contract holders.

Keep this fact in mind and you won’t go wrong by way of allowing bias to influence your work. Objectivity is the name of the game.

Lawyers

Attorneys are another common employer of marine investigators.

Maritime lawyers tend to concentrate in the major metropolitan areas, or major boating centers, though attorneys tend to be a bit more picky about whom they hire than do insurance companies.

Most seek out experts on the basis of referral from someone familiar with the surveyor’s work, such as other lawyers. Lawyers may hire surveyors as investigators shortly after a casualty occurs, or as experts to review cases, provide advice and often testimony.

Of course, when an insurance case goes to litigation, the insurance company’s lawyer will be making use of the company’s surveyor so that the surveyor ends up with two jobs out of one.

When it comes to litigation, the surveyor’s work is normally guided by the attorney on the basis of what the attorney sees as relevant to the case.

Because of this, the surveyor’s view may end up differing from that of his client. He should therefore avoid being too assertive about his own views and accept guidance from the attorney.

Above all, one should not become so egocentric as to believe that he knows better than the lawyer. Perhaps he does, but the investigator is not trying the case, so his opinion isn’t relevant.

The community of maritime lawyers is a small one, not only locally but even on the national scale.

Lawyers are always on the lookout for good experts, and they discuss this amongst themselves, which means that reputations spread like wild fire, both pro and con.