What is a letter of compliance?
When a marine insurance company reviews a survey, they analyze the surveyor’s recommendations. They then require that the boat owner provide a signed statement documenting which recommendations have been fully completed, which recommendations are currently being performed and the anticipated completion date and which recommendations will be done in the future. If the policyholder does not intend to complete a particular recommendation, this should be stated in the Letter of Compliance. This letter becomes a part of the policyholder’s file and can be used to determine future coverage in the event a loss occurs.. If the insurance company is not satisfied with the compliance of the survey recommendations, they will advise the policyholder that additional specified work must be completed or the policy will be cancelled.
