Final answer:
When an accident exceeds $2,000 or results in total loss, reporting to authorities or insurance companies is necessary.
Step-by-step explanation:
If the accident exceeds $2,000 or if there is a complete loss of the vessel, specific actions must typically be taken. This often includes reporting the incident to appropriate authorities or insurance entities, depending on the jurisdiction and the insurance policy requirements.
In the context of automobile insurance, for instance, if a group of 100 drivers was responsible for total damage amounting to $186,000 in one year, each driver paying an insurance premium of $1,860 would enable the insurance company to cover these costs.
Premiums are based on the risk assessment of insured drivers and damages likely to occur within the policy period, and they also help the insurance company to remain solvent in the face of claims.