In the near future, we hope, we can start looking forward to weather that is conducive to outdoor recreation, although some who are reading this issue are probably under 14 inches of snow. Many outdoor and boat shows are taking place, and clients and prospects have picked out the vessel that will give them many hours of pleasure this coming season. Although plans to take advantage of this niche should have been put into action yesterday, it still is not too late.
An advantage of working this market is that most of the owners of watercraft with values of $25,000 and up will have other lines of business that are targets for your agency. Vehicles needed to tow boats can be in the SUV category with high physical damage values. Yachts valued in the six-figure range and high-end homes go together. The chances are good, also, that the owner of a vessel in that price range also owns a business. For example, Brauer & Associates, an MGA in Columbus, Ohio, placed coverage on a 315-foot yacht that is the largest yacht flying the United States flag in the world. It carries a 22-person crew. (Hey--a small group prospect.) Needless to say the owner is not saying, "Do you want fries with that?" The value is in the extremely high millions and "took some doing to place." The yacht can sail worldwide except Antarctica and war zones.
Some special coverage applies in the watercraft line of business. P&I, or protection and indemnity coverage, is similar to liability for automobiles. It provides bodily injury and property damage for accidents arising out of the ownership and operation of a vessel. This can be a yacht or craft used in a commercial operation. P&I is written only in connection with hull coverage under a yacht policy. It includes liability coverage for loss of life or personal injury to guests, swimmers, and to the public in general. It does not protect the insured against claims arising out under the Federal Longshore Act and Harbor Workers Compensation Act if applicable.
One of the most popular types of watercraft in recent years has been the PWC or personal watercraft. PWCs are single-engine, inboard-powered vessels no greater than 16 feet in length, using a water-jet pump as the primary source of power. Some manufacturers have produced units that can accommodate one, two or three passengers. Included in this class are Jet Ski, Waverunner, Wet bike and Sea Doo. A wide variety of markets exist for PWCs. Units are written on an ACV basis. Trailers and other equipment can be added. With some areas of the country outlawing the use of PWCs because of environmental issues, the number of new units sold has dropped slightly.
Yachts and pleasure craft would include both sail and powered vessels. Policies usually are written on an all-risk basis covering both physical damage (hull) and liability. Depending on the individual risk, limits of liability up to $5 million are not uncommon. Values up $50 million can be placed with most markets with higher limits on physical damage considered with underwriting approval. Optional coverage includes trailers, personal effects, medical payments, uninsured boaters, and towing liability. Don't forget that water skis and fishing tackle are not part of the hull. Boats over 25 years of age are generally placed under antique or classic boat policies. Some associations that cater to owners of this type of craft often endorse programs for their members.
One type of boat that has drastically increased in ownership over the past 15 to 20 years is the bass boat. These are boats designed with special seats, trolling motors, depth and sonar units. This craft is used primarily for bass fishing although it can be used for other activities such as water-skiing and pleasure boating. New units can run from $25,000 and up in value. This may be the safest watercraft overall due to the fact that a large portion of the owners participate in organized fishing tournaments where certain safety requirements must be observed. Life jackets must be worn when the engine is running and a "kill switch" must be connected that stops the motor if the operator is thrown from the boat. Most tournaments will not allow an "overpowered" boat to participate in the event. On each boat a certification states the recommended horsepower for that model, the number of passengers that it can safely carry and the total weight of those. A 150-horse engine is not a high-performance boat if this is the manufacturer's recommended motor for that particular craft. In fact, a 25-horse engine on a boat recommended for a 10-horse engine could be more of a hazard.
As with most lines of insurance, watercraft is very competitive. That could change if the new reinsurance contracts are renewed at higher rates. David Worden, vice-president of INAMAR Insurance Agency, suggests that the reinsurers are looking at between a 7% to 9% increase for the coming year. Worden believes that insureds will feel an increase more in the 5% range rather than the total of that increase. He stated that the general belief is that the losses have been o.k. during the past year--unless the carrier has a lot of exposure on the Southern coastline. The written production of PWCs is down somewhat, but he attributes that to ecological rather than other underwriting issues.
When surveying this niche we looked at five major categories. These were jet pump boats, personal watercraft, sport fishing boats, water sport rentals, and yachts/pleasure boats. The following organizations have replied to that survey and indicated that they were a market for this class of business.
John G. Alden Special Risks, Inc.
1300 S.E. 17th St.
Ft. Lauderdale, FL 33316
Contact: Jim Gallaudet
Phone: (800) 330-3370
Fax: (954) 525-0588
Web site: www.aldeninsurance.com
A broker operating in all states and U.S. territories offering limits of up to $20 million on hull and $20 million on P&I. Target markets include all private pleasure craft and rental operators. War risks, medical payments, fishing equipment, and personal property are available. A rated domestic and international carriers are used to place business.
American Modern Insurance Group
7000 Midland Blvd.
Amelia, OH 45102
Contact: Kevin Morreale, Sr. Vice President
Phone: (800) 759-9008, Ext. 2828
Fax: (513) 947-4152
E-mail: kmorreale@amig.com
Web site: www.amig.com
An insurer operating in all states except HI and offering limits of $500,000 on liability and up to $150,000 on hull coverage. Coverage is available for non-owned watercraft, uninsured boater, personal effects, medical payments, trailers, and emergency assistance towing. No commercial exposures are written. American Modern Insurance Group and its subsidiaries are rated A.
American Reliable Insurance Company
8655 E. Via De Ventura, Ste. E 200
Scottsdale, AZ 85258
Contact: Valley Owens
Phone: (800) 535-1333, Ext. 369
Fax: (480) 607-7949
An insurer operating nationwide offering limits from $25,000 to $500,000 on a CSL basis and $10,000/$20,000/$5,000 to $100,000/$300,000/$50,000 on a split-limit basis. Hull limits are available to $500,000. Target markets are specialty watercraft, nonstandard risks, PWC, and multi-owner houseboats. Vessels moored on coastal waters and commercial risks are not considered. American Reliable Insurance Company is an A rated carrier.
Arlington/Roe & Company
8465 Keystone Crossing
Indianapolis, IN 46240
Contact Janet Phillips, CIC
Phone: (800) 878-9891
Fax: (317) 259-4106
E-mail: info@arlingtonroe.com
Web site: www.arlingtonroe.com
An MGA operating in IL, IN, KY, MI and OH. Limits will vary by program and risks. Target markets are yachts, pleasure boats, and PWCs. Carriers include ACE USA, Markel, Guide One, and American Modern Home.
Barnhardt Marine Insurance, Inc.
4492 Southside Blvd., Ste. 100
Jacksonville, FL 32216
Contact: Eva Poole
Phone: (904) 646-0770
Fax: (904) 646-0659
An MGA operating in the East, Gulf, West coast, Hawaii, Central America, and the Caribbean. Limits of up to $5 million on hull and P&I coverage are offered. Breach of contract and pollution also are available. Carriers are Lloyd's and RLI Insurance Company.
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 offering $1 million on P&I coverage and open on hull coverage. Carriers include Great American, Reliance, and Lloyd's.
Bohrer, Croxdale & McAdoo, Inc.
P.O. Box 2760
Springfield, MO 65801
Contact: Yvonne Bohrer or Donna Allen
Phone: (800) 779-2550
Fax: (888) 869-2550
E-mail: dallen@bcmins.com
An MGA operating in AR, KS, and MO offering limits of $1 million on liability and hull coverage from small to larger values. Carriers include First Marine and Markel American.
Brauer & Associates, Inc.
P.O. Box 230232
Columbus, OH 43220
Contact: Toni Montoney or Donna Sahr
Phone: (800) 695-0934
Fax: (614) 451-8810
An MGA operating in all states, Bahamas, and Canada. Limits for P&I up to $100 million and hull coverage to $50 million are offered. Target markets include high-speed and high-performance watercraft including yachts. The A rated carrier is INAMAR.
J.E. Brown & Associates
2255 Ygnacio Valley Rd., N1
Walnut Creek, CA 94598
Contact: Wendy Heathorn or May Scott
Phone: (800) 955-8213
E-mail: marketing@jebrown.net
Web site: www.jebrown.net
An MGA operating in AZ and CA offering limits of up to $100,000 on hull coverage and liability limits of $300,000/$300,000/$300,000. Limits for hull to $150,000 and $500,000 on liability with prior approval. Target markets include pleasure craft, houseboats, pontoons, sailboats, and PWCs. Uninsured boaters, medical payments, towing & assistance, personal effects, and water-skiing liability are available. The A rated carrier is American Modern.
Burns & Wilcox
30833 Northwestern Hwy., Ste. 220
Farmington Hills, MI 48334
Contact: Bill McCord
Phone: (800) 521-1918
Fax: (248) 932-9040
E-mail: email@burnsandwilcox.com
Web site: www.burnsandwilcox.com
An MGA/E&S broker operating in all states except HI, MA and WA and offering limits of up to $100 million on hull and liability. All classes are considered. Markets are available for watercraft with claims, nonstandard construction, high performance, and high liability limits for PWCs. A rated carriers include American Modern, Jefferson, and Lloyd's.
Continental/Marmorstein & Malone
P.O. Box 586
Paramus, NJ 07652
Contact: Bill Malone
Phone: (800) 932-0849
Fax: (201) 261-8922
E-mail: bmalone@ca-group.com
Web site: www.ca-group.com
An E&S broker operating in NJ offering up to $500,000 CSL on liability with excess limits to $10 million. Target markets include PWCs, inboard/outboards, runabouts, high performance, sail boats, pontoons, houseboats, and bass boats. Personal umbrellas are available. Jefferson Insurance Company is the carrier.
Cooney, Rikard & Curtin, Inc.
P.O. Box 59689
Birmingham, AL 35259
Contact: Paul Greenaway or Mickey White
Phone: (800) 824-1709
Fax: (205) 879-3739
A wholesale broker operating in all states offering up to $25 million in liability limits. A rated carriers are utilized to place coverage.
J.P. Everhart, Inc.
P.O. Box 8
Dallas, TX 75488
Contact: Carolyn Sangster
Phone: (800) 442-6061
Fax: (903) 664-4309
An MGA operating in TX offering liability limits of up to $500,000. Physical damage for the watercraft is available with a $500 deductible on the vessel and $250 on the trailer. Pacific Specialty is the A rated carrier.
Florida International Underwriters, Inc.
2300 Glades Rd., Ste. 135 East
Boca Raton, FL 33431
Contact: Janice Silverman
Phone: (561) 392-1323
Fax: (561) 392-2995
A broker operating in all states offering up to $10 million on hull and liability coverage. Worldwide navigation is included. Target markets include all types and sizes of pleasure craft, charter and rental operations. A rated domestic carriers along with Lloyd's and I.L.U. companies are utilized to place coverage.
INAMAR Insurance Agency
18500 Von Karman Ave., Ste. 250
Irvine, CA 92612
Contact: David Worden, Vice President
Phone: (800) 221-3884
Fax: (949) 955-7111
E-mail: david.worden@ace-ina.com alisa.breese@ace-ina.com
Web site: www.inamar.cigna.com
An MGA operating in AR, AZ, CA, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, ND, NE, NH, NJ, NV, NY, OH, OR, PA, RI, SD, TN, TX, UT, VT, WI and WV. Limits offered are $5 million on hull coverage and $10 million on P&I limits. Target markets are PWCs, high-performance boats, pleasure craft, and live-a-board risks. Carriers include ACE USA, Fireman's Fund, Northland, and Zurich, all A rated or better. No commercial fishing risks are considered.
Jimcor Agencies
15 Ver Valen St.
Closter, NJ 07624
Contact: Coryn Mastowski
Phone: (800) 334-0474
Fax: (201) 784-7901
E-mail: cmastowski@jimcor.com
An MGA/E&S broker operating primarily in the Northeast and Mid-Atlantic states. Limits include $25 million on hull and $5 million on P&I. All types of watercraft are considered. Stand-alone coverage for all types of recreational watercraft, including high-performance vessels, also is available. Various carriers are utilized including Jefferson Insurance, Essex Insurance, and Lloyd's.
K&K Insurance Group, Inc.
P.O. Box 2338
Ft. Wayne, IN 46801
Contact: Ralph Odell,
Sr. Account Representative
Phone: (800) 927-4756
Fax: (219) 459-5109
An MGA operating in all states offering limits of $1 million on liability. Hull, P&I, property, inland marine, and workers compensation also are available. Target markets are watercraft rental operations including parasailing, sailing schools, and windsurfing schools. Incidental rental of bikes, umbrellas, and chairs can be provided. Bare boat charters, houseboats, scooter, motorcycles, and ATV rentals are not considered. The A rated carrier is TIG Insurance Group.
H.R. Keller & Company
1520 Sheridan Dr.
Buffalo, NY 14217
Contact: Sandi Smejles
Phone: (800) 424-2202
Fax: (716) 874-4920
A general agency operating in NY offering up to $1 million in liability limits. Target markets are PWCs, high-performance boats, older watercraft, and insureds with poor driving records. All carriers are A rated or better.
M.J. Kelly Company, Inc.
P.O. Box 231
Turners, MO 65765
Contact: Gary Spurrier
Phone: (800) 725-7211
Fax: (417) 833-7103
An E&S broker operating in AR, FL, IA, IL, KS, MO, MS, NE, OK, TN, UT and WA. Limits of $50,000 on primary and up to $5 million on excess watercraft liability are offered. Most types of vessels are considered, including older craft, high performance, and unusual watercraft. GuideOne Specialty Mutual and Old United Casualty are carriers utilized to place coverage.
Marine Underwriters Agency, Inc.
P.O. Box 8699
Red Bank, NJ 07701
Contact: Underwriting Department
Phone: (800) 631-2147
Fax: (800) 548-0501
Web site: www.marineunderwriters.com
An MGA operating in all states except AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA and WY offering limits of up to $10 million on P&I and unlimited on hull coverage. Target markets include PWCs and mega-yachts. Carriers include ACE USA, Markel, CGU, American Modern, and Windsor Mt. Joy.
G.A. Mavon & Company
10 W. Chicago Ave.
Hinsdale, IL 60521
Contact: Georgianne Dykstra
Phone: (877) GA-MAVON
Fax: (639) 654-4447
An MGA operating in IL and contiguous states. Limits will vary with the carrier. Standard and nonstandard risks considered. All carriers are A rated or better.
The Monitor Company, Inc.
P.O. Box 427
Delray Beach, FL 33447
Contact: Deborah J. Hiebert
Phone: (800) 561-7561
Fax: (561) 330-9041
E-mail: dhiebert@mindspring.com
An MGA operating in all states except LA offering limits of $250,000 on hull and $1 million on liability coverage. Target markets include high-performance boats and PWCs. The A rated carrier is The Jefferson Group.
National Marine Underwriters, Inc.
P.O. Box 4636
Annapolis, MD 21403
Contact: John Beachley
Phone: (800) 262-8467
Fax: (410) 268-9764
E-mail: jbeachley@nmu.com
Web site: www.nmu.com
A managing underwriter operating in all 48 contiguous states offering limits of up to $500,000 on hull coverage and $1 million on liability. Personal effects, uninsured boater, and medical payments are available. The A rated carrier is Hanover Insurance Company.
Northland Insurance Company
1295 Northland Dr.
Mendota Heights, MN 55123
Contact: Roger Vossen
Phone: (800) 237-9334, Ext. 4204
Fax: (651) 688-4498
E-mail: roger.vossen@northland.com
An insurer operating nationwide offering limits of $100,000 on hull and $300,000 liability for PWCs and personal vessels. Yacht limits are $500,000 for hull and $1 million on P&I. All classes are considered. Northland Insurance and Northland Casualty are A rated.
Old United Casualty Company
P.O. Box 795
Merriam, KS 66201
Contact: Douglas E. Semler, VP, Marine Operations
Phone: (800) 866-6090, Ext. 271
Fax: (800) 777-BOAT (2628)
E-mail: dsemler@vtaig.com
Web site: www.oldunited.com
An insurer and marine general agent operating in all states except AK, HI, ME, NH and VT offering hull limits of $50,000 on boats and $2 million on yachts. Watercraft liability of up to $500,000 and P&I of $1 million also are offered. High-performance yachts over 26 feet in length along with NAVIGUARD mechanical breakdown is a target market. PWCs and antique boats are not currently written direct with Old United Casualty. Old United Casualty is an A rated carrier. Business is placed with American Modern and the Ski Safe program as a general agent.
Pacific Specialty Insurance Company/McGraw Group
P.O. Box 40
Anaheim, CA
Contact: Vivian Tafolla
Phone: (800) 303-5000
Fax: (714) 939-0219
E-mail: mikemcgraw@aol.com
Web site: www.mcgrawgroup.com
An insurer operating in all 50 states offering limits of $300,000 CSL. Target market is personal watercraft. All-risk coverage on hull coverage is available.
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 operating in IL and IN offering limits of $100,000/$300,000/$50,000 through GuideOne, an A rated carrier, on a direct-bill basis only. Target markets are stand-alone policies for PWCs, bass boats, pleasure craft, pontoon boats and sailboats. Boats over 30 feet in length, over 300 h.p., houseboats, and commercial risks are not considered.
W.A. Schickendanz Agency
P.O. Box 445
Belleville, IL 62222
Contact: Judy Wall
Phone: (800) 869-9976
An MGA operating in IL offering several levels of limits depending on the risk. The target market is personal watercraft. Northland Insurance Company is the A rated carrier.
Bruce V. Schneider Associates, Inc.
45 Middle Country Rd.
Middle Island, NY 11953
Contact: Scot Schneider
Phone: (800) 224-1701
Fax: (631) 698-6128
E-mail: bvsa@banet.net
Web site: www.bvsainsurance.com
An MGA operating in all states offering open end on limits depending on the risk and carrier. Target market all types of marine exposures including high-performance boats, yachts, live-a-boards, PWCs, houseboats, bass boats, airboats, jet boats, pontoons, PWC and power boat rentals, and excess liability. Carriers include Markel American, Great American, Old United, American Reliable, American Modern, and CGU.
Robert A. Schneider Agency
5620 Smetana Dr., Ste. 350
Minnetonka, MN 55343
Contact: American Service Center
Phone: (800) 236-2637
An MGA offering liability limits of $1 million in IA, MN and ND. Both hull and P&I coverages are written. All classes are considered, including hard-to-place risks such high-performance vessels. Markel is the A rated carrier.
Ski-Safe-Sea-Safe
One Hollow Lane
Lake Success, NY 11042
Contact: New Quote Department
Phone: (800) 225-6560
Fax: (800) 225-6560
Web site: www.SkiSafe.com
An MGA/program administrator operating in all 50 states and Canada offering limits of liability on PWCs, ski boats, and classic boats of $1 million--$20 million and higher is available on yachts. Target markets are PWCs, water ski risks, and certain classes of fishing boats and cruisers. USA Waterski, Antique Boat Club, and various manufacturers endorse some special programs. Hull, P&I, uninsured boaters, trailering and transit, and course of restoration are available. PWCs are written on an ACV basis; other vessels can be placed either on ACV or agreed value.
Thum Insurance Agency, LLC.
6119 28th St., S.E.
Grand Rapids, MI 49546
Contact: Larry Thum
Phone: (800) 366-0777
Fax: (616) 957-1204
E-mail: thum@msn.com
Web site: www.thuminsurance.com
An agency operating in all states except HI. No high-end limit on hull and $10 million and up on liability for yachts. Guaranteed replacement cost available on selected yacht risks. All risks are considered except commercial watercraft. A rated or better carriers are utilized to place coverage.
Van Wagoner Company, Inc.
1100 Jupiter Rd., Ste. 121
Plano, TX 75074
Contact: Paul Van Wagoner, II
Phone: (800) 727-9999
E-mail: pvanwag@frash.net
An MGA operating in OK and TX offering limits of $150,000 on hull and $1 million on liability coverage. Target markets are personal boats and yachts. The A rated carrier is American Reliable.
J.M. Wilson
8036 Moorsbridge Rd.
Portage, MI 49224
Contact: Sue Pifer
Phone: (800) 678-8106
Fax: (616) 327-4131
E-mail: sue-pifer@jmwilson.com
Web site: www.jmwilson.com
An MGA operating in IL, MI, OH, PA and WI. Limits of liability offered are $300,000. Target market includes high-performance and personal watercraft. Markel and Jefferson Insurance Company is the A rated carrier. *
©COPYRIGHT: The Rough Notes Magazine, 2000