Ambiguous wording risks insurance claims being rejected

In 2023, River Canal Rescue (RCR) warned boat owners about third-party only insurance policies.

How ambiguous wording could leave them unable to recover costs for a vessel refloat, removal and pollution management if their boat sinks.

Claim is denied

It’s not just third-party policy wording however, that’s under fire; RCR highlights that even when you've done everything correctly, you can still end up in a situation where your claim is denied.

RCR and its subsidiary, Canal Contracting, respond to hundreds of incidents resulting in insurance claims every year, and there’s growing alarm over the high number of cases where it could be argued claims are unfairly rejected.

Managing Director, Stephanie Horton, comments:

“In addition to insurance companies removing common third-party risks or adding them as optional extras, essentially downgrading their cover, we’re witnessing some heart-breaking cases, where insurers are rejecting claims from people with fully comprehensive cover, leaving them to cover salvage costs and unable to replace their homes or possessions.

“In most cases owners have been responsible, obtained surveys and undertaken all work identified, but can end up still being penalised for issues they were unaware of.”