Dave and Debbie Martin have always wanted to purchase a boat and to learn to sail. When Debbies Father died, the couple inherited enough money to purchase a sailboat. A local lake has a marina where they keep the boat. Dave and Debbie purchased physical damage insurance and liability insurance on the boat. The physical damage insurance includes a $1,000 deductible. Dave and Debbie keep a fire extinguisher on the boat, as well as life jackets and a first aid kit. As they are novice sailors with little boating experience, Dave and Debbie pay close attention to weather conditions. If there is any chance of high winds or bad weather, they do not use the boat.

Which of the following risk treatment measures (retention, transfer, risk control, or avoidance) do each of the following illustrate with regard to the loss exposures arising from owning and operating the boat?

a. Keeping life jackets, a fire extinguisher, and a first aid kit on the boat.

b. The $1,000 deductible on the physical damage coverage.

c. Purchasing physical damage insurance on the boat and liability insurance.

d. Not sailing when it is windy or there is a chance of bad weather.