Watercraft is a niche that retail agents' standard companies will probably not address. For the most part, standard carriers consider this niche to be a very small portion of their total book of business; consequently, it does not receive a great amount of their attention. The underwriter may be responsible for several other lines of business and thus may not understand the watercraft market as well as someone who deals with it on a daily basis. Watercraft usually is seen as an accommodation line for auto and homeowners policyholders.
Most markets will provide liability limits of $500,000 to $1 million and hull coverage to $1 million for personally owned boats and yachts. These limits will satisfy the majority of your clients unless you are located in one of the major areas such as Florida and California where watercraft ownership is common. Certain markets specialize in writing large yachts and boats that can be valued at upwards of $50 million.
Most policies will contain liability and hull coverage. Optional coverage includes medical payments, passenger liability, equipment, trailers, towing, underinsured watercraft, and mechanical breakdown. Certain exclusions such as water-skiing and tournament participation can be found in many policies. If your client has these exposures some carriers provide a buy-back option. For E&O purposes, it may be a good idea to address these exposures with each application.
Difficult risks such as antique and classic, wooden and nonstandard construction watercraft as well as high-performance boats can also be placed with watercraft specialty markets. Antique and classic boats are ones 25 years and older. For the most part wooden boasts that are desirable to underwriters are of the Chris Craft class. Some coverage can be obtained through an association basis.
High-performance boats are generally ones that can obtain speeds of up to 100 mph. The important issue with this type of watercraft is "what is the manufacturer's recommended horsepower?" A plate on the inside of the boat will provide the maximum horsepower, number of passengers, and weight recommended for that model. Some watercraft today operate with outboard motors exceeding 200 horsepower, but are constructed to safely handle that speed.
Watercraft rental consisting mostly of personal watercraft or the "Jet Ski" type of unit has taken some negative hits of late. Several national parks have banned the use of PWCs due to the impact on the environment from noise, fuel emissions, and shore erosion. A total ban will take effect in 2002. Licensing requirements in some states prevent underage drivers from taking the helm of PWCs.
David Mello, division vice president with K&K Insurance, comments: "On the watercraft rental side, many of the programs have been discontinued. The trends in the watercraft market reflect trends in other areas of the specialty insurance. Some markets that were willing to write the business on a one-off basis are now less willing or unwilling to write the risk."
The issue of pricing has yet to be resolved. Howard Reiff, executive vice president of Ski-Safe-Sea-Safe, an MGA, states: "Pricing will most likely be firming, trending with the general P&C market. Fewer PWCs are being sold. Those sold are higher powered and valued units; however, we remain strongly committed to providing a competitive market. We also see a continuation of the trend to outsource the underwriting and servicing of this small niche to the specialty markets."
Bob Kinsey of Marine Underwriters Agency, a wholesaler, observes that "declining investment income and capacity along with reinsurance cost increases should push rates higher. On the other hand, a storm-free 2000 might encourage price reductions." Considering these two views, Kinsey feels that overall rates will probably remain close to stagnant.
As was mentioned previously, watercraft does not take up a large portion of most agency book of business. In most cases these risks are placed for existing clients. In a recent Rough Notes reader survey, agents indicated that 79% had placed coverage on boats/yachts in the past year. This indicates that almost every agent will need a market sometime during the year. The Insurance Marketplace for
2001 lists 59 markets for yachts
and boats.
The following markets have responded to our survey and indicated they write all or a portion of watercraft risk.
American Modern Insurance Group
P.O. Box 5323
Cincinnati, OH 45201
Contact: Sales Administration
Phone: (513) 943-7200
An insurer operating in all states except HI offering limits of up to $150,000 on hull and $500,000 on liability. American Modern Insurance is an A rated carrier.
Barnhardt Marine Insurance Inc.
4492 Southside Blvd., Ste. 100
Jacksonville, FL 32216
Contact: Eva Poole
Phone: (904) 646-0770
Fax: (904) 646-0659
E-mail: barnhardtins@cs.com
An MGA operating in all states and the Caribbean offering limits of up to $1 million with excess available. A rated or better carriers include RLI Insurance, Royal Insurance, and AGF Marine Aviation Transport.
Russell Bond & Company, Inc.
295 Main St., Ste. 866
Buffalo, NY 14203
Contact: Michelle DiMartile, CISR, (Ext. 142)
Eileen Rogers, AIS, ARP,
(Ext. 146)
Phone: (800) 333-7226
Fax: (716) 856-0403
E-mail:
info@RussellBond.com
Web site:
www.RussellBond.com
An MGA/E&S broker operating in NY offering limits of up to $500,000 on liability and $175,000 on hull coverage. Target markets are all watercraft including powerboats, PWCs, sailboats, boats up to 45 ft. and 70 mph, problem MVRs, corporate titled, multiple owners, live-aboards, and wooden boats. Coverages available include water ski liability, personal effects, miscellaneous equipment, towing and labor, and uninsured boaters. Jefferson Insurance Company is the carrier.
Brauer & Associates, Inc.
P.O. Box 20232
Columbus, OH 43220
Contact: Dan Martin, Toni Montoney, or Donna Sahr
Phone: (800) 695-0934
Fax: (614) 451-8810
An MGA operating in all states offering limits of up to $100 million on liability and $50 million on hull coverage. Target markets include PWCs. A+ Ace (INAMAR) is the carrier.
Burns & Wilcox
30833 Northwestern Hwy., Ste. 220
Farmington Hills, MI 48334
Contact: Bill McCord
Phone: (800) 521-1918
Fax: (248) 932-9046
E-mail:
wmmccord@burns-wilcox.com
Web site:
www.burns-wilcox.com
An MGA/E&S broker operating in all states except HI and NY offering limits of up to $100 million on both liability and hull coverage. Markets available for watercraft with claims, nonstandard construction, high performance, along with PWCs. Personal effects, towing and uninsured boaters are also written. A rated American Modern and Lloyd's are the carriers.
Combined Resources
P.O. Box 1152
Medford, NY 11763
Contact: Richard Rossi
Phone: (800) 784-6775
outside NY (631) 447-6153
An MGA/wholesaler operating in DE, FL, NH, NY, PA, SC and VA offering limits of up to $5 million on hull coverage. All marine risk considered. Various carriers are utilized to place coverage.
Cross Border Underwriting Services, Inc.
545 Wilson Ave.
North York, ON, Canada M3H 5Y6
Contact: Damion Brooks, Amanda Grozier, Patti Anderson
Phone: (888) 646-CBUS (2287)
Fax: (416) 636-5367
Web site: www.CBUS.net
A wholesaler operating in Canada and the United States offering limits up to $1,000,000. Target market is watercraft owned by Canadians in the United States and Canada. Chubb is the carrier.
Fireman's Fund McGee Marine Underwriters
Two World Trade Center, 47th Floor
New York, NY 10048
Contact: Dennis Mathies or
Brian Wood
Phone: (212) 524-8600
Web site: www.ffic.com
An insurer operating in all states offering limits of up to $1 million liability and $5 million hull coverage. Target markets are yachts and powerboats. Fireman's Fund Insurance is A+ rated.
First Western Insurance
100 One Corporate Place
1501 42nd St.
West Des Moines, IA 50266
Contact: Hazel Woods,
Stephanie Daniels
Tom Boettcher
Phone: (800) 475-1000
E-mail: H.Woods@fwins.com
S.Daniels@feins.com
T.Boettcher@fwins.com
Web site: www.fwins.com
An MGA/E&S broker operating in IA and NE offering limits of $500,000 on liability. Physical damage is also written. Target markets include older pleasure boats, houseboats, and PWCs. A rated or better carriers are Jefferson and American Reliable Insurance.
G&M Marine Inc.
818 Howard Ave., Ste. 201
New Orleans, LA 70113
Contact: Bill Trufant or Louise Butler
Phone: (504) 588-9044
Fax: (504) 588-9397
E-mail: billtrufant@gmmarine.com
Web site: www.gmmarine.com
An MGA operating in all states offering limits of up to $25 million on liability and $1 million on hull coverage. Target markets include older yachts, houseboats and high-performance powerboats. Centennial Insurance Company is the carrier.
Gallant Insurance Company
6640 S. Cicero Ave.
Bedford Park, IL 60638
Contact: Bob Meagher, Marketing Manager
Phone: (800) 333-5530
Fax: (847) 692-1193
E-mail: Bobmewarriorinsurance.com
Web site: www.warriorinsurance.com
An insurer operating in IL and IN offering limits of up to $100,000/300,000/25,000 on liability, hull values to $30,000 and 32 ft., $15,000 on PWCs, and up to $20,000 on jet boats. Gallant is B rated by Standard and Poor's.
Hull & Company, Inc.
2150 S. Andrews Ave.
Ft. Lauderdale, FL 33316
Contact: B.J. Denton
Phone: (800) 241-4855, (Ext. 11)
Donna Bowles
(800) 678-4855, (Ext. 242)
Mike McFarland
(800) 725-4855
Fax: (954) 524-0479
Web site: www.hullco.com
An MGA operating in all states offering limits of up to $15 million. Target markets include mega yachts, high performance, corporate owned, multiple owners, small watercraft, and PWCs. Various carriers are utilized to place coverage.
INAMAR Insurance Underwriting Agency
18500 Von Karman Ave., Ste. 250
Irvine, CA 92612
Contact: David E. Worden, Vice President or Debbie Gross, Senior Pleasure Craft Broker
Phone: (800) 221-3884
Fax: (949) 955-7111
E-mail: INAMAR.agency@ace-ina.com
Web site: www.INAMAR.com
An MGA operating in all states except HI, NM, OK and WY offering liability limits of up to $10 million on yachts, and $1 million on small watercraft. Hull limits of up to
$35 million on yachts and $100,000 on small watercraft are offered. Target markets are high-performance watercraft, PWCs, live-aboards, and pleasure craft of all sizes. A rated or better carriers include ACE USA, Fireman's Fund, Northland, and Zurich.
John G. Alden Special Risks, Inc.
1300 SE 17th St., Ste. 220
Ft. Lauderdale, FL 33316
Contact: Jim Gallaudet
Phone: (800) 330-3370
Fax: (954) 523-0588
E-mail: jg@alden.cncdsl.com
Web site: aldeninsurance.com
An E&S broker operating in all states and worldwide offering limits of up to $10 million. All marine risk is considered. Various A rated U.S. and U.K. carriers are utilized to place coverage.
K&K Insurance Group, Inc.
1712 Magnavox Way
Fort Wayne, IN 46804
Contact: David Mello, Division Vice President, Ralph Odell, Senior Account Representative
Phone: (800) 552-9253
Fax: (219) 459-5511
Web site: www.kankinsurance.com
An MGA operating in all states offering limits of up to $16 million. Target market is watercraft rental; no individually owned watercraft is written, The A rated carrier is TIG Insurance Company.
H.R. Keller & Company
1520 Sheridan Dr.
Buffalo, NY 14217
Contact: Sandi Smejles or Rob Martin
Phone: (800) 424-2202
Fax: (716) 874-4920
A wholesaler/general agent operating in NY. Limits vary by the carrier and risk. Target markets include PWCs, high-performance watercraft, and older boats. Various
A rated or better carriers are utilized to place coverage.
M.J. Kelly Company, Inc.
P.O. Box 231
Turners, MO 65765
Contact: Gary Spurrier
Phone: (800) 725-7211
Fax: (417) 883-7103
An E&S broker operating in AR, FL, IA, IL, KS, MO, MS, OK and TN offering limits of up to $1 million. Excess is also written. Target market is individually owned watercraft. Carriers include Old United Casualty, Guideone, G & M Marine, U.S. Liability, and Mt. Vernon.
Marine Underwriters Agency, Inc.
P.O. Box 8699
Red Bank, NJ 07701
Contact: Robert Kinsey
Phone: (800) 631-2147
Fax: (800) 548-0501
Web site: www.marineunderwriters.com
A wholesaler/agency operating from the Great Lakes to TX and to the East Coast offering limits required. Various A rated U.S. carriers are utilized to place business.
National Marine Underwriters, Inc.
410 Severn Ave., Ste. 207
Annapolis, MD 21403
Contact: John Beachley
Phone: (800) 262-8467
E-mail: jbeachley@nmu.com
Web site: www.nmu.com
A managing underwriter operating in 48 states offering limits of up to $1 million on liability and $500,000 on hull coverage. Target markets include recreational watercraft, yachts, high-performance boats, and PWCs. The A rated carrier is Hanover.
Old United Casualty Company, dba Vantage Casualty Company in CA
P.O. Box 795
Merriam, KS 66201
Contact: Douglas E. Semler or Tim Bankston
Phone: (800) 866-6090
Fax: (800) 777-0200
E-mail: dsemler@vtaig.com
Web site: www.oldunited.com
www.navigard.com
An insurer operating in all states except AK, ME, NH and VT. Limits offered are boat/watercraft; hull up to $75,000; liability up to $500,000; yachts up to $2 million. Other marine coverage written includes mechanical breakdown (stand-alone or by endorsement), medical payments, uninsured boaters, personal effects, emergency and towing, and U. S. L. & H. Target markets include PWCs, individually owned watercraft, yachts and classic watercraft. Old United Casualty is an A rated carrier.
Pacific Specialty Insurance/McGraw Insurance Services
3601 Haven Ave.
Menlo Park, CA 94025
Contact: Vivian Tafolla
Phone: (800) 6McGraw (662-4729)
E-mail: DMcAllister@McGrawGroup.com
Web site: www.McGrawGroup.com
An insurer operating in all states offering liability limit of up to $500,000. Target market is PWCs. Pacific Specialty Insurance Company is an A rated carrier.
Rossi Insurance Group
455 Route 112
Patchogue, NY 11772
Contact: Richard Rossi
Phone: (800) RV-INS75 (784-6775)
An MGA/wholesaler operating in DE, FL, NH, NY, PA, SC and VA offering hull limits up to $5 million. All marine risk considered. Various carriers are utilized to place coverage.
Roush Insurance Services, Inc.
P.O. Box 1060
Noblesville, IN 46061
Contact: Stacy Specht, Alice Booth or Jerry Roush
Phone: (800) 752-8402
Fax: (317) 776-6891
E-mail: jerry.roush@roushins.com
Web site: www.roushins.com
An MGA operating in IL and IN offering limits of up to $500,000 and hull coverage up to $150,000. Medical, personal effect, mechanical breakdown, and uninsured boaters are also written. Target markets are stand-alone boat and yachts. The
A rated carrier is Old United Casualty.
Robert A. Schneider Agency
5620 Smetana Dr., Ste. 350
Minnetonka, MN 55343
Contact: Markel Service Center
Phone: (800) 236-2637
An MGA operating in MN offering limits of up to $1 million on liability and up to $500,000 on hull coverage. Target markets include all types of watercraft including preferred, high-performance boats, yachts and PWCs. Personal and corporate-owned watercraft as well as rental risk are also written. Markel Insurance is an A rated carrier.
Bruce V. Schneider Associates, Inc.
45 Middle Country Rd.
Middle Island, NY 11953
Contact: Scot Schneider or Andrea Cobrera
Phone: (800) 224-1707
Fax: (631) 698-6128
E-mail:
bvsa@banet.net
Web site:
www.bvsainsurance.com
An MGA operating in 48 states offering limits of $5 million on liability and $25 million on hull coverage. Target markets include boats, yachts, high-performance, PWCs, bass boats, mega yachts, and boat and PWC rental. A rated carriers include Markel, Essex, Great American, AMH, Old United Casualty, CGU, and Clarendon.
Sea to Sea, Inc.
P.O. Box 515
Pismo Beach, CA 93448
Contact: Kurtis L. Limbo
Phone: (800) 732-2732
Fax: (805) 481-8222
E-mail:
limbo@charter.net
A general agent/broker operating in all states offering limits of up
$2 million on primary and an additional $4 million on excess. Target markets include personal pleasure craft, airboats, high performance, mvr risk, seasonal yachts, and rentals. A rated carriers include Markel American, Old United Casualty, Essex and T.H.E. Insurance company.
Ski-Safe/Sea Safe
One Hollow Lane
Lake Success, NY 11042
Contact: Howard M. Reiff
Phone: (800) 225-6560
Fax: SAME AS PHONE
E-mail:
Inquiry@SkiSafe.com
An MGA operating in all states offering limits of up to $2 million on liability and hull coverage of $2 million for boats/personal watercraft and $20 million on yachts. Target markets are recreational marine, PWCs, boats, yachts, antique/classic boats, bass boats, and ski boats--no rentals. ACE Group is the A+ rated carrier.
Specialized Insurance & Services
455 Medford Ave.
Patchogue, NY 11772
Contact: Richard Rossi
Phone: (800) 360-5988
Fax: (631) 758-6781
An MGA operating in DE, FL, NH, NY, PA, SC and VA offering hull limits up to $5 million. Various carriers are utilized to place coverage.
Superior Access Insurance Services
P.O. Box 57092
Irvine, CA 92619
Contact: Patti Harrell
Phone: (800) 272-7550
Web site:
www.superioraccess.com
A wholesale agency operating in 48 states offering limits of up to $1 million on liability and $500,000 on hull coverage. Target markets include high-performance boats. No wooden boats, foreign registered craft or twin engine PWCs are written. Extended cruising coverage for sailboats and houseboats with multi-hulls is available. Highland Insurance Group is the carrier.
Thum Insurance Agency, L.L.C.
6119 28th St. S.E.
Grand Rapids, MI 49546
Contact: Larry Thum
Phone: (800) 866-0777
Fax: (616) 957-2400
E-mail: thum@msn.com
Web site:
www.thuminsurance.com
An agency operating in all states except HI, MT, NJ and SC offering limits of up to $500,000. Target markets are fishing boats, pontoons, cabin cruisers, bass boats, runabouts, and PWCs. The carrier is Progressive.
Unifax Insurance Systems, Inc.
23251 Mulholland Dr.
Woodland Hills CA 91364
Contact: Sue Vier or Anne Ferris
Phone: (800) 669-9800
Fax: (818) 591-9858
An MGA operating in CA offering CGL packages up to $5 million. Rental operations are written. American Equity is an A+ rated carrier.
Van Wagoner Company, Inc.
1100 Jupiter Rd., Ste. 121
Plano, TX 75074
Contact: Paul Van Wagoner
Phone: (800) 727-9999
E-mail:
pvanwag@flash.net
An MGA operating in OK and TX offering limits of up to $1 million on liability and $50,000 on hull coverage. Target market is PWCs. Trailers and water ski liability are also written. The A+ rated carrier is American Bankers. *
