SPECIALTY LINES MARKETS
Smooth sailing or choppy waters?
By Larry G. France
Clients buy coverage for their autos and homes because they need both of these items. They do not need "toys" such as boats and personal watercraft.
Not only will watercraft coverage and pricing change this year (along with almost every line of insurance)--but the economy will dictate that some watercraft owners divest themselves of that financial burden. Because this article was written in December 2001, it was difficult to predict the economy of February 2002--unless you happened to be a TV weather person! However, as of December, the lack of patrons in tourist areas had already taken its toll on watercraft rental operations, and one insurer had pulled from writing this line of business. Losses, plus a smaller base of premium from which to pay claims, affected this decision.
Personal watercraft accounts for 8% of all watercraft (there are about 1 million PWCs in the United States); however, of the over 11,000 boating accidents in 1999, 30% involved PWCs, according to the U.S. Coast Guard.
Underwriters of watercraft are following the trend of most lines of business by requiring more information and past history. According to the Florida Fish and Wildlife Conservation Commission, 75% of the jet ski accidents occurring in Florida involved rented PWCs. Florida passed a law that required watercraft rental operations to provide information on: safety, proper operation of the watercraft, boating laws, and conditions regarding the water the PWC is being used on.
Richard McSweeny, of McSweeny Agency, an MGA/E&S broker in Burlington, New Jersey, says: "Markets are looking for information including complete applications and loss runs or information. Incomplete submissions are almost impossible to quote." McSweeny Agency places coverage in New Jersey and Pennsylvania for personal yachts, commercial vessels and support industries.
A year ago we were talking average premium increases of about 5%. Those now could be closer to 10% or 15% depending on values, usage of the craft, and past loss history.
Howard Reiff, executive vice president of Ski-Safe/Sea Safe, an MGA in Lake Success, New York, observes: "We expect prices to continue to firm while capacity will shrink for some. Companies committed to sound underwriting and pricing will continue to lead the market and maintain stability in this niche."
High-value purchases will be affected to some degree, but the middle price range of watercraft most likely will be the area where new purchases may be flat.
Each of the following markets has responded to our survey on the watercraft market. Please note the targeted market of each, as well as the states or territories of operation.
All Risk/CESI, LLC
277 Broadway, Ste. 1001
New York, NY 10007
Contact: Maya Cruz
Phone: (877) 385-0404
Fax: (212) 385-9556
Web site: www.ca-group.com
An E&S broker operating in NY only with limits of $1 million. Writes only marine liability; no personal watercraft. Can write marine risks and boat repair risks. Carrier is Essex/Lloyd's.
American Modern Insurance Group
P.O. Box 5323
Cincinnati, OH 45201
Contact: Sales Administration
Phone: (800) 759-9008
E-mail: kmorreale@amig.com
Web site: www.amig.com
An insurer operating in all states except HI, and offering standard limits of up to $150,000 on hull and $500,000 on liability. Higher limits are available. American Modern is the A rated carrier.
Barnhardt Marine Insurance, Inc.
4492 Southside Blvd., Ste. 100
Jacksonville, FL 32216
Contact: Eva Poole, Jennifer DeAngelo, John Nguyen
Phone: (904) 646-0770
Fax: (904) 646-0659
E-mail: barnhardtins@cs.com
An MGA operating in all states and the Caribbean. Limits of $1 million and excess are available. Specializes in commercial fishing vessels--with hull and machinery, protection and indemnity, breach of warranty and pollution coverage also offered. The A rated or better carriers are AGF Marine Aviation Transport, Royal, and Lloyd's of London.
BAT Insurance Corp.
465 S. Beverly Dr.
Beverly Hills, CA 90212
Contact: Tony Trocino
Phone: (310) 282-0753
Fax: (310) 282-7133
An E&S broker operating in CA only with limits of $1 million. All classes are considered with hull and P&I offered. Zurich is the A rated carrier.
Russell Bond & Co., Inc.
295 Main St., Ste. 866
Buffalo, NY 14203
Contact: Michelle DiMartile, Ext. 142
Phone: (800) 333-7226
Fax: (716) 856-0403
E-mail: boats@russellbond.com
Web site: www.russellbond.com
An MGA/E&S broker operating in NY only with liability limits of up to $50 million and hull values up to $20 million. Target market is all types of watercraft, including powerboats; jet skis; sail boats up to 45 ft.; speeds up to 70 mph; problem MVRs, liability only; corporate titled multi-owners; live-aboards and wooden boats. Also offered are uninsured boaters, pollution spill, towing and labor, waterski liability, personal effects and miscellaneous equipment. Various A rated or better carriers are used to place coverage.
Brauer & Associates, Inc.
P.O. Box 20232
1520 Old Henderson Rd.
Columbus, OH 43220
Contact: Toni Montoney, Donna Sahr, Dan Martin
Phone: (800) 695-5934
E-mail: tonimontoney-brauer@rrohio.com
An MGA operating throughout the continental United States and the Bahamas with hull limits of $50 million and P& I of $100 million. Target market is high-speed skidoos with world wide navigation also offered. Carriers are ACE/CIGNA and Great American, rated A or better.
Combined Resources
P.O. Box 1152
Medford, NY 11763
Contact: Richard Rossi
Phone: (800) RV INS-75
A general agency and wholesaler that operates in CT, DE, FL, NH, NY and PA with limits of up to $2 million. Target market is personal watercraft, boats, yachts and high-performance watercraft. Also offered are agreed value, stated value or ACV. Various carriers are used to place coverage.
Eagle Marine Underwriters
P.O. Box 1701
Orlando, FL 32802
Contact: Margaret Bastin
Phone: (800) 444-6503
Fax: (407) 894-2845
E-mail: mbastin@hughcotton.com
An agency/wholesaler operating throughout the continental United States with limits of $15,000 and up in hull value. Offers P&I from $100,000 up to $2 million; uninsured boaters; personal effects; medical payments and spill liability coverage. Carriers are Continental, Royal & SunAlliance, Commercial Union, St. Paul, and Clarendon.
Global Marine Insurance Agency, Inc.
P.O. Box 6747
Traverse City, MI 49696
Contact: Matt Anderson, Mike Smith, Dawn Stanley
Phone: (800) 748-0224
Fax: (231) 947-4407
E-mail: Matt.anderson@quotemyboat.com
Web site: quotemyboat.com
An MGA operating in the contiguous 48 states. All classes are considered, including jets skis and mega-yachts. The A rated carriers are Inamar, Royal, Zurich, Markel, and CNA, as well as other niche carriers.
Hull & Company, Inc.
2150 South Andrews Ave.
Ft. Lauderdale, FL 33316
Contact: Donna Bowers
Phone: (800) 678-4855
Fax: (954) 524-0479
E-mail: dbowers@hullco.com
Web site: www.hullco.com
805 Executive Center Dr. W., Ste. 100
St. Petersburg, FL 33702
Contact: Theresa Proios
Phone: (800) 727-4855
Fax: (727) 579-9064
E-mail: tproios@hullco.com
Web site: www.hullco.com
14120 Ballantyne Corporate Pl., Ste. 525
Charlotte, NC 28277
Contact: B.J. Denton
Phone: (800) 241-4855
Fax: (704) 540-7611
E-mail: bjdenton@hullco.com
Web site: www.hullco.com
An E&S agent operating in all states with limits of $5,000 and up. Target markets are personal watercraft, small boats, yachts, and mega-yachts. Will also offer tenders, trailers, P&I, Jones Act and Longshore and Harbor Workers Act coverage, medical payments, uninsured boaters, towing, and personal effects. Various A rated carriers are used to place coverage.
Insurance Center Special Risks, Ltd.
P.O. Box 1185
246 Park Street
West Springfield, MA 01090
Contact: Susan Fisk, Ext. 349; Leo Roberg, Ext. 353; Sharon Vanpelt, Ext. 351
Phone: (888) 773-7475
Fax: (413) 781-0050
An MGA operating in CT, MA, ME, NH, NY, RI and VT with hull limits of up to $3 million and P&I of up to $5 million. Target markets are personal watercraft such as jet skis, high-performance, lobster boats, charters, jet ski rentals, and standard watercraft classes. Also offers pollution liability, hurricane haul-out and agreed value or ACV hull loss valuation. Old United Casualty, Markel American, One Beacon, and Clarendon (via AMU) are the A rated carriers.
John G. Alden Special Risks, Inc.
1300 S.E. 17th St., Ste. 220
Ft. Lauderdale, FL 33316
Contact: Jim Gallaudet
Phone: (800) 330-3370
Fax: (954) 525-0588
E-mail: jgallaudet@aldeninsurance.com
Web site: www.aldeninsurance.com
An E&S broker that operates worldwide with hull limits of $10 million and P&I of $50 million. Will insure all types of vessels. Also offers bareboat charter and captain charter. All carriers are A rated.
K&K Insurance Group, Inc.
P.O. Box 2338
Ft. Wayne, IN 46801
Contact: Terry Winklejohn
Phone: (800) 927-4756
Fax: (260) 459-5511
E-mail: KK_Dealership@kandkinsurance.com
Web site: www.kandkinsurance.com
An MGA operating in all states with liability limits of $1 million, with excess capabilities. Target markets are watercraft rental operations, boat dealerships, sailing schools, windsurfing schools, waterski schools, regattas, boat tours and charter boats. Does not write parasailing, marinas or yacht clubs. Also offers property, inland marine, commercial auto, workers comp, crime, business income, fire legal liability, ocean marine and crew liability. TIG Specialty is the carrier.
H.R. Keller & Co., Inc.
1520 Sheridan Dr.
Buffalo, NY 14217
Contact: Sandi Smejles, Rob Martin
Phone: (800) 424-2202
A general agent/wholesaler that operating in NY only with limits of $1 million (varies by company). Target markets are high-performance/jet ski. Both admitted and nonadmitted A rated carriers are used.
Marine Underwriters Agency, Inc.
P.O. Box 8699
Red Bank, NJ 07701
Contact: Cathy Dressler, Bob Kinsey, Eileen Salerno
Phone: (800) 631-2147
Fax: (800) 548-0501
Web site: www.marineunderwriters.com
A wholesaler that operates from ME to FL and the Great Lakes to TX with unrestricted limits. All classes are considered. ACE, American Modern, Markel, and One Beacon are the A rated or better carriers.
McSweeny Agency (E&S)
505 High St.
Burlington, NJ 08016
Contact: Richard McSweeny
Phone: (609) 387-0101
Fax: (609) 387-7171
An MGA/E&S broker that operates in NJ and PA with limits of $5 million. Target markets are personal yachts, commercial vessels, and support industries. Also offered are P&I, hull, trailer, repairs, boat dealers, marinas, ship chandlers, shrink-wrappers, launch & recover, and transportation. Carriers are rated A or better, depending on the account.
Midwestern General Agency, Inc.
255 N.W. Blue Pky.
Lee's Summit, MO 64063
Contact: Bill White, Jan Lampe
Phone: (800) 788-4347
An MGA/E&S broker that operates in IL, KS, MO and NE, with limits of $1 million CSL on most risks. Target markets are personal watercraft, sailboats, pleasure watercraft, yachts and some commercial watercraft. Will also write mechanical breakdown, medical payments, personal/miscellaneous equipment and waterski liability. American Modern and First Marine of MO are the carriers.
National Marine Underwriters, Inc.
410 Severn Ave., Ste. 207
Annapolis, MD 21403
Contact: John Beachley
Phone: (800) 262-8467
Fax: (410) 268-9764
E-mail: jbeachley@nmu.com
Web site: www.nmu.com
An MGA for recreational marine risks operating in the 48 contiguous states with hull and liability limits of $500,000. All private pleasure recreational marine classes are considered. Also covers 6-passenger charters and extended cruising. Hanover is the A rated carrier.
Old United Casualty Co.
P.O. Box 795
Merriam, KS 66201
Contact: Douglas E. Semler, Tim Bankston
Phone: (800) 866-6090
Fax: (800) 777-BOAT (2628)
E-mail: dsemler@vtaig.com
Web site: www.oldunited.com www.naviguard.com
An insurer operating in all states except AK and NH, with liability limits of up to $1 million and hull of up to $2 million. Target markets are high-performance boating/yachts; personal watercraft, physical damage and liability; classic/seasoned watercraft (watercraft over 25 years of age). Also offered are local fishing guide coverage; six-pack fishing charter coverage; and NAVIGUARD mechanical breakdown insurance either as a stand-alone policy or endorsement to policies' NAVIGUARD mechanical breakdown insurance for personal watercraft. Old United, rated A, does business as Vantage Casualty Company in CA.
Prime Insurance Syndicate, Inc./I.E.B.S.
311 S. Wacker, #3360
Chicago, IL 60606
Contact: Rick J. Lindsey
Phone: (877) 585-2850
E-mail: rjl@primeis.com
Web site: www.primeis.com
An insurer that operates nationwide and in Canada with limits of up to $1 million. Target market is P&I. All other coverages are offered. Prime is a B rated carrier; also uses A rated Lloyd's to place coverage.
R.E. Chaix & Associates
1501 Westcliff Dr., Ste. 290
Newport Beach, CA 92660
Contact: Jo Sargent
Phone: (800) 369-4337, Ext. 223
Fax: (800) 644-4454
E-mail: jos@rechaixinsurance.com
Web site: www.rechaixinsurance.com
An E&S broker operating in AZ and CA only with limits of $25 million. Target market is trailerable, extended navigating; not written are ferro cement, racing. Also offered are hull and machinery, P&I, pollution, breach of warranty, cargo, war risk, and boat manufacturers.
Rossi Insurance Group
467 Rte.112
Patchoque, NY 11772
Contact: Sandra Rossi
Phone: (800) 360-5988
An MGA, GA/wholesaler that operates in DE, FL, NY, PA and VA, with limits of up to $2 million. Target markets are PWCs, boats, yachts and high-performance. Also offered are agreed and stated values, and classic/antique coverages. All carriers are top-rated.
Roush Insurance Services, Inc.
P.O. Box 1060
Noblesville, IN 46061
Contact: Stacy Specht, Ext. 19
Phone: (800) 752-8402
Fax: (317) 776-6891; (317) 776-6892
E-mail: stacy.specht@roushins.com
Web site: www.roushins.com
An MGA operating in IL and IN only with hull limits of $150,000, P&I of $500,000, medical up to $10,000, and boats/yachts and uninsured boater up to $10,000. Target market is stand-alone coverage for boats and yachts, with boat equipment and mechanical breakdown also offered. Old United Casualty Co. is the A rated carrier.
Robert A. Schneider Agency
5620 Smetana Dr.
Minnetonka, MN 55343
Contact: Jody Stolp
Phone: (800) 236-2637
An MGA/E&S broker operating in MN only with limits of $1 million. Target market is inland watercraft. Also offers liability/hull coverage and GL. Market is the A rated carrier.
Sea to Sea Insurance Services, Inc.
P.O. Box 515
Pismo Beach, CA 93448
Contact: Kurtis L. Limbo
Phone: (800) 732-2732
Fax: (805) 773-2010
A general agent/wholesale broker operating in all 50 states with primary limits of $1 million and excess of $4 million. Call for acceptability. Markel American, Old United Casualty and Essex are the A rated carriers.
Ski-Safe/Sea Safe
One Hollow Lane
Lake Success, NY 11042
Contact: Howard M. Reiff, Executive VP; Valerie Gambino, Marketing-Communications Coordinator
Phone: (800) 225-6560
Fax: Same
E-mail: inquiry@Ski-Safe.com
Web site: www.Ski-Safe.com
An MGA operating in all states with P&I limits of $20 million (higher limits considered) and all limits considered for hull. Target markets are PWCs, ski boats, antique/classics, pontoons, houseboats, yachts, bass fishing boats, floating homes, and guides. Also offered are watersports liability, Jones Act, charters, and antique/classic. ACE, Ltd., is the A rated carrier.
Surplus Insurance Brokers Agency, Inc.
P.O. Box 749
South Bend, IN 46624
Contact: JoAnn Laatz
Phone: (800) 342-5706
Fax: (800) 578-7758
An MGA that operates in IN only with limits of $300,000. Will cover jet skis and boats. All carriers are A rated or better.
Specialized Insurance & Services
467 Route #112
Patchoque, NY 11772
Contact: William Grey
Phone: (800) 78INS-75
An MGA/wholesaler operating in NY only with limits of $2 million. Target markets are PWCs, small boats, yachts, high-performance. Also offered are antique/classic and not agreed value. Carriers are A rated.
The Colonial Group, Inc.
4411 W. Market St., Ste. 400
Greensboro, NC 27407
Contact: Robert W. Burke
Phone: (800) 628-3762
Fax: (336) 855-1190
E-mail: bburke@thecolonialgroup.com
Web site: www.thecolonialgroup.com
An MGA that operates in GA, KY, NC, SC, TN and VA. Target market is watercraft. Carriers are American Modern Home, American Reliable, Aegis Security, Windsor, Voyager and Lloyd's of London.
Western World Insurance, co.
400 Parson's Pond Dr.
Franklin Lakes, NJ 07417
Contact: Timothy P. Hochkeppel
Fax: (201) 847-1010
E-mail: t.hochkeppel@westernworld.com
Web site: www.westernworld.com
An insurer that operates in all states with limits of $1 million/$2 million. Target market is watercraft rental only. Also offers GL/property. Western World is A rated. Tudor Insurance, an A rated carrier, also is used. *