In the past five years a strong economy and booming Wall Street have provided an abundance of leisure dollars to spend on "toys" for adults. Real estate sales have soared to record levels and have included summer homes, cabins, and cottages on the water. With this prestige setting, you just can't have a 1963 Sears jonboat tied up to your $60,000 floating dock.
The choices of watercraft range from the personal watercraft (PWC) to multi-million dollar yachts. Approximately one million PWC are registered in the U.S., and sales of these fast and highly portable units had skyrocketed until recently. According to Michael McGraw, COO of the McGraw Group, the largest writer of personal watercraft in the United States, several factors have contributed to a sales decline for PWC: rising cost of the units in the past 10 years, saturation of the marketand public reaction to the pollution problem. In 1999, PWCs are banned from operation on Lake Tahoe due to the chemical pollution.
Owners' homeowners policies provide little or no coverage for PWCs. Many specialty markets write a stand alone policy.
In the boat or ship category (the price determining which category applies) runabouts are the smallest of the craft. Runabouts usually fall under the 26 foot definition contained in the homeowners policy and are powered by outboard or inboard motors. Values will normally be under $30,000. In most cases placement for this watercraft is easy. The age of the boat, driving record of the insured, horsepower, and area of operation are major underwriting factors.
Yachts can far exceed $15 million in value, but unless you have an extraordinary client you probably will be in the $1 million and under class. The navigational waters of operation are of major concern as well as the mooring and storage location. Vessels used outside of inland water or located on coastal waterways are of a higher risk and will draw the underwriters' attention. Several markets specialize in this exposure. Personal property associated with owners of yachts can be extensive. Depending on the market, some coverage is included in the basic policy form, but increased limits will need to be evaluated.
Houseboats are gaining not only in ownership but as rental units for vacationers. As a rule, houseboats are more difficult to operate so the experience of the operator is critical. Considering the bulk and weight of the hull and the engines of up to 400 horsepower, this craft is not especially responsive to tight turns or quick stops.
Houseboat values can readily exceed $100,000. Some are used as a residence in the coastal areas, and coverage for this exposure can be placed through several markets. Rental operators can obtain cover to protect themselves, not the renter. Packages include liability, hull damage, and premises liability plus optional coverages. Markets will require a written agreement from the renter to contain hold harmless language.
Boats over 25 years of age, wooden hulls, and custom watercraft are classified as antique or classic. Markets exist to accommodate this segment either through MGAs or associations who endorse specific programs for their members. Two such organizations are the National Chris Craft Club and Antique Boat Club.
Other types of watercraft exposures include sportfishing operators, watercraft rental, charter operations, water taxis, and jet pump boats. Limits for liability up to $1 million are easily attainable, and physical damage is usually written on an ACV basis. Optional coverages offered are medical payments, towing, mechanical breakdown, sports equipment endorsement, and non-owned watercraft.
Each market listed has responded to our survey. A description of its operation, contact person, limits, target markets and other information pertaining to the watercraft market follows.
American Yachts, Ltd.
711 West 40th St., Ste. 356
Baltimore, MD 21211
Contact: Suzanne Redden, President
Phone: (800) 909-7899
Fax: (410) 243-2659
As an MGA for Underwriters Insurance Company, an A-rated carrier, they operate in all of the continental U.S. Target markets include pleasure boats over 26 feet and $50,000 in hull value with $300,000 to $800,000 as a prime target.
Arlington & Roe
8465 Keystone Crossing
Indianapolis, IN 46240
Contact Janet Phillips, V.P. Personal Lines
Phone: (800) 878-9891
Fax: (317) 259-4106
E-mail: janetp@
arlington-roe.com
Operating in IL, IN, KY, and OH, this MGA utilizes A-rated carriers Cigna, Markel, and American Modern Home. Target markets are yachts, bass/pleasure boats, limited commercial, PWC, and houseboats.
Burns & Wilcox
30833 Northwestern Hwy., Ste. 220
Farmington Hills, MI 48334
Contact: Bill McCord, CPCU, Vice President
Phone: (800) 521-1918
Fax: (248) 932-9040
E-mail: email@burnandwilcox.com
URL: www.burnsandwilcox.com
This program is available in 41 states (excludes New England, AK, HI and NY.). Various A-rated carriers including American Modern Home, Jefferson, and Lloyd's are utilized to provide limits of up to $100 million. Several markets are available for excess claims, nonstandard construction, excess speed, cruises, charters, and high limits on PWC.
Delaware Valley Underwriting Agency, Inc.
420 S. York Rd.
Hatsboro, PA 19040
Contact Joel Kaplan
Tony Saltzman
Phone: (800) 388-0215
Fax: (215) 672-7983
E-mail: info@dvua.com
URL: www.dvua.com
This MGA targets only commercial watercraft in DE, MD, NJ, PA, and VA. A-rated carriers provide limits that will vary with the operation of the insured.
GKA, Inc.
P.O. Box 55295
Tulsa, OK 741556
Contact: Skip Tipton, Ext. 3022
Phone: (800) 888-0202
Fax: (918) 258-5416
E-mail: skip@gka.net
This MGA targets jet ski rentals, boat, canoe rentals and white water rafting in all except the northeastern U.S. $1 million/$2 million in primary and up to $10 million in excess is placed with Century Surety, Odyssey Re, and Colorado Western.
Global Marine Insurance
P.O. Box 392
Traverse City, MI 49685
Contact: Pam Stanley/Marv Wittig
Phone: (800) 748-0224
Fax: (616) 947-4407
E-mail: gmi@globalmarine
insurance.com
URL: http//www.globalmarine
insurance.com
Operating in all 50 states, this MGA offers $1 million limits on watercraft and ACV on physical damage with A-rated carriers Cigna, St. Paul, and American Modern Home. Target markets include all types of PWC, jet boats, runabouts and yachts.
G & M Marine, Inc.
600 Maritime Bldg.
203 Caronelet St.
New Orleans, LA 70130
Contact: Louise Butler
Phone: (504) 588-9044
Fax: (504) 588-9397
E-mail: loisebutler@gmmarine.com
All classes of pleasure and commercial vessels are targeted by this MGA. Limits of $25 million are written through Albany, Centennial, Underwriters Insurance Company, all A-rated.
INAMAR Insurance Agency
2400 E. Katella, Ste. 300A
Anaheim, CA 92806
Contact: David Worden
Alisa Faust Breese
Phone: (800) 221-3884
Fax: (714) 939-5602
E-mail: deworden@
Cigna.email.com
An MGA operating in all states except HI, NM, OK, and WY, providing limits up to $300,000 on small vessels and $1,000,000 on yachts; other craft may qualify for up to $10,000,000. They have the capacity to provide coverage for any size vessel on a worldwide basis and can customize property and casualty for each risk. Carriers include Cigna, Northland, Zurich, Fireman's Fund, Great American, and American Home, all A-rated.
International Excess Agency, Inc.
5001 Mayfield Rd., Ste. 109
Cleveland, OH 44124
Contact: Danyelle Reighard, Director of Personal Lines
Phone: (800) 937-3497
Fax: (216) 291-1382
An E&S broker placing coverage in FL, MI, OH, PA, and TX. Limits up to $500,000 available on all types of boats and PWCs targeting operators over 40 years of age, watercraft under 40 feet, and $125,000 in value. They are not a market for commercial operations of houseboats and pontoons on coastal waters or the Great Lakes. The carrier is Reliance National Indemnity Company, A-rated.
K&K Insurance Group, Inc.
P.O. Box 2338
Fort Wayne, IN 46804
Contact: Melanie Lane
Phone: (800) 927-4756
Fax: (219) 459-5511
E-mail: mlaine@aon.com
URL: www.kandkinsurance.com
A Managing General Underwriter providing coverages for watercraft rental with limits of up to $1 million on primary with additional excess limits available. This program is available in all 50 states with TIG, A-rated, as the carrier.
H.R. Keller & Co., Inc.
1520 Sheridan Dr.
Buffalo, NY 14217
Contact: Sandi Smejles
Phone: (800) 424-2202
Fax: (716) 874-4920
Various carriers are utilized to place coverage in New York for high performance boats and jet skis. Limits of up to $1 million on jet skis and $500,000 are available.
MacAfee & Edwards, Inc.
260 S. Los Robles Ave.
Pasadena, CA 91101
Contact: Duane E. Allen
Phone: (800) 334-7950
Fax: (626) 792-7322
An E&S broker offering a national program for small watercraft and wave runner/jet skis. Carriers include Lloyd's and various U.S. and Mexican companies. Limits of liability up to $1million and $300,000 on hull coverage are available. Target markets include trips to Mexico and the Caribbean.
Marine Underwriters Agency, Inc.
P.O. Box 8699
Red Bank, NJ 07701
Contact: Underwriting Department
Phone: (800) 631-2147
Fax: (800) 548-0501
A Wholesale Agency operating in 40 states with carriers Cigna, Reliance, CGU, and American Modern. Limits are $5 million on liability and unlimited on the hull. They are not a market for commercial, high performance, or older vessels.
Maritime General Agency
81 A Fort Salonga Rd.
Northport, NY 11768
Contact: Christopher L. Pesce
Phone: (800) 366-8086
Fax: (516) 757-1063
E-mail: info@maritimegeneral.com
URL: www.maritimegeneral.com
An MGA for New Hampshire Insurance Company. Limits for hull damage are $10,000 to $10,000,000 with up to $5 million on P&I. Territory of operations includes Great Lakes, East Coast, West Coast, and inland waterways. They are the exclusive underwriters for New Hampshire's boat and yacht program. Appointments available.
Markel American Insurance Company
P.O. Box 906
Pewaukee, WI 53072
Contact: Karen L. Hildebrand
Phone: (800) 236-2862
Fax: (414) 544-4443
E-mail: khilde@markelcorp.com
Operating in all 50 states, this insurer targets craft over 20 years of age, wooden hulls, speeds of up to 100 mph, and runabouts. Hull values up to $500,000 (ACV and agreed value) with liability up to $1 million.
McGraw Group
3601 Haven Ave.
Menlo Park, CA 94025
Contact: Brian Weaver, Ext. 3700
Vivian Tafolla, Ext. 3307
Phone: (800) 828-3003
Fax: (650) 780-4848
McGraw Group includes McGraw Insurance Services, an MGA, and Pacific Specialty Insurance Company, an A-rated insurer. Limits of liability up to $300,000 and all-risk physical damage available in the U.S. for watercraft under 16 feet. In California, the limit for physical damage is $40,000 for watercraft under 32 feet.
McSweeny Agency Agency
505 High St.
Burlington, NJ 08016
Contact: Richard McSweeny
Phone: (800) 546-6454
Fax: (609) 387-7171
Program is available in NJ, PA and the Caribbean for watercraft utilizing several A-rated carriers. Limits are $1 million for P&I and hull including equipment.
The Merrimac Group, Inc.
P.O. Box 427
Deray Beach, FL 33447
Contact: Debbie Hiebert
Phone: (800) 561-7561
An MGA operating in the contiguous 48 states offering limits of up to $1 million on high performance boats less than 45 feet in length and under $20,000 in value. Carrier is A-rated. Trip coverage offered and named windstorm is available for buy-back.
Old United/Vantage Casualty Company
P.O. Box 795
Shawnee Mission, KS 66201
Contact: Douglas Semler, V.P. Marine Operators, Ext. 271
Tim Bankston, Marine Underwriting Supervisor
Phone: (800) 866-6090
Fax: (800) 777-2628
URL: www.oldunited.com
A marine specialty insurer and a marine specialty agency, (Marine Protection Plus), operating in all states except AK, HI, NH, NJ, ME, and VT. This carrier is A-rated. Target markets include boats and yachts under 26 feet, 20 years and under, hull values of $50,000 on boats and $50,000 to $2 million on yachts. Liability limits of $500,000 on boats and $1 million on yachts are offered. Some maximum speed limitations apply. Naviguard Mechanical Breakdown Insurance is the first policy for mechanical breakdown failures on watercraft including personal watercraft. It is available as a stand-alone policy or as an endorsement to a boat or yacht policy. Contact: Marine Protection Plus: http://www.marineprotection.com
Roush Insurance Services, Inc.
P.O. Box 1060
Noblesville, IN 46061
Contact: Randy A. Duncan, Sr.
Phone: (800) 752-8402
Fax: (317) 776-6891
An MGA offering coverages in IL and IN for stand-alone policies on PWCs, bass boats, pleasure craft, pontoons, and sailboats. Limits of $100,000/$300,000 are written through Guidant, an A-rated carrier. Classes not written include craft over 30 feet in length, over 300 horsepower and commercially owned watercraft.
Bruce V. Schneider Associates, Inc.
45 Middle County Rd.
Middle Island, NY 11953
Contact: Bruce T. Schneider, V.P. Marketing, Ext. 11
Phone: (800) 224-1707
Fax: (516) 698-6128
E-mail: BVSA@banet.net
A marine insurance MGA operating in the contiguous 48 states providing a market for high performance boats, yachts, small boats, PWCs, bass boats, pontoons, house boats, PWC/boat rental, excursion vessels, ferries/water taxis, six pac charters, and bare boat charters. Liability limits of up to $1million on most programs and excess to $10 million on certain types of risks are placed with A-rated carriers Markel American Insurance, Old United Insurance, Great American Insurance, and American Modern Insurance. Mechanical breakdown, fuel spill liability, and physical damage also are written.
Ski-Safe & Sea Safe
One Hollow Lane
Lake Success, NY 11042
Contact: Underwriting Department
Phone: (800) 225-6560
Fax: (800) 225-6560
An MGA operating in all 50 states and placing coverage with Cigna, A-rated, for PWCs, boats, and yachts. Also available antique and classic boats. Limits of liability on boats under 26 feet in length and PWCs is up to $1 million and $20 million yachts. There is no limit on hull coverage. Optional discounts on lay-up periods and inland risks are provided, as well as uninsured boaters. They have several exclusive endorsements including the National Chris Craft Club, Antique Boat Club, and USA Waterski aka American Waterski Association.
Van American Insurance Agency of AL, Inc., d/b/a/ SMIS
2 Riverchase Office Plaza, Ste. 208
Birmingham, AL 35244
Contact: Debbie Rogers
Phone: (800) 755-7647
Fax: (205) 403-0761
URL: www.vanamerican.com
Operating in AL, FL, GA, MS and TN, this MGA utilizes Markel American and U.S. Specialty to write PWCs and bass boats with limits up to $300,000 as target markets.
Van Wagoner Companies, Inc.
1100 Jupiter Rd., Ste. 121
Plano, TX 75074
Contact: Paul Van Wagoner
Phone: (800) 227-9999
Fax: (972) 423-7770
Operating in all 50 states, this MGA provides up to $1 million in primary limits and up to $100,000 on hull coverage. All types of watercraft are written.
Western World Insurance Company
400 Parson's Pond Dr.
Franklin Lakes, NJ 07417
Contact: Tim Hochkeppel, Underwriting Manager
Phone: (201) 847-8600
Fax: (201) 847-1010
E-mail: t.hochkeppel@
westernworld.com
URL: www.westernworld.com
This insurer provides coverages on a countrywide basis. Limits of up to $1 million for liability are available. All classes entertained.
J. M. Wilson Corporation
8036 Moorsbridge Rd.
Portage, MI 49024
Contact: Sue Pifer
Phone: (800) 678-8106
Fax: (616) 327-4131
URL: www.jmwilson.com
A-rated carriers Markel American, Jefferson, and American Modern are markets for this MGA to place coverage in IL, IN, MI, OH, PA and WI. Target markets include small charters, boat rentals, PWCs, and high performance watercraft. *
©COPYRIGHT: The Rough Notes Magazine, 1999