SPECIALTY LINES MARKETS
Smooth sailing or choppy waters?
By Larry G. France
Any time you deal with a product that depends a great deal on the economy, it certainly will have peaks and valleys. Recreational "toys" fall into that category. Pleasure boats and personal watercraft are not on most people's buy list when the future economy is not very predictable.
Let's also add to that mix the fact that some states do not allow personal watercraft (PWC) units on public waterways due to pollution/chemical issues and, of course, noise. To invest $5,000 and up for a luxury item that may need to be transported some distance, and whose operational costs rise along with rising gasoline prices, may make this type of purchase out of the question.
The market for watercraft has been decreasing overall due to fewer carriers, declining capacity and losses. Some carriers are now charging for coverage that was waived during the prior soft market. The year 2003 doesn't appear to be bringing relief in pricing.
According to Doug Semler, senior vice president of Old United/Vantage Casualty Insurance Company, the increase in insurance fraud regarding the boating industry is a major factor for underwriters to accurately and properly price and evaluate risks.
As Semler stated in the "Western Boaters Safety Group" newsletter: "A recent insurance Research Council and Insurance Office survey taken among 343 insurance carriers showed that 40% of the insurance carriers are spending more on the battle against insurance fraud over the last three years than in prior years."
Semler said that the respondents indicated that "soft fraud" (the exaggeration of otherwise legitimate claims) is far more frequent than "hard fraud" (the deliberate attempt to stage losses often committed by organized crime). "The mere prevalence of 'soft fraud' adds more to the overall claims cost than 'hard fraud.'"
Semler stated: "Watercraft theft is on the rise nationwide as well. Boat thefts cost the boating community between $85 million and $125 million each year, according to the Wisconsin Department of Natural Resources (DNR). Approximately 27,000 boats are reported stolen each year and of those, 90% are less than 20 feet in length."
Semler says that one of the major factors regarding fraud and theft claims is that there is no uniformity in watercraft registration documentation. Currently, 19 states have no requirements that a title must be presented in order to register a watercraft; 13 states require no proof of ownership; and 10 states require neither a title nor a proof of ownership. Semler says that states need to mandate boat licensing and registration. The boating community needs to address establishing both minimum operator ages and mandatory boating education standards. "We need state watercraft registration legislation, which is uniform countrywide, that requires proof of ownership and proof of insurance to help us fight against fraud, boat theft, and a serious increase in frequency of uninsured boaters claims."
Know your product and have fun. That's the attitude taken by Andrew Anderson, executive vice president of Anderson Insurance Agency of Long Beach Island, New Jersey. This independent insurance agency writes more than 500 boat, yacht, and other policies and has its own in-house marine department. The Anderson Agency also places coverage on commercial fishing boats, marina and boat dealer risks and difficult-to-place boats.
"Boat insurance is fun to write if you enjoy the outdoors and being on the water," says Anderson. "It gives you something pleasant to talk to the clients about. Boats insurance is usually purchased because the client sees value in the coverage. This often puts the clients in a better frame of mind when they are talking about their hobbies." Anderson stresses the importance of adding the watercraft policy to the client's umbrella policy if the client has one. "When a client purchases a large vessel, we advise them that they are now a 'higher profile' member of the community; and it is possible that more will be demanded from them if they injure someone. This helps make the umbrella sale a little easier."
Anderson says that pleasure craft with good loss experience are seeing modest rate increases (in the area of 10% to 15%) while those with adverse loss experience are finding coverage difficult to impossible to secure. "Some underwriters will skillfully underwrite a tougher risk by excluding certain types of equipment from coverage or imposing other restrictive conditions on the policy as a way of making the risk acceptable. You need a real marine underwriter to do that. Many underwriters have expertise in a particular geographical region or with a particular type of boat. Like the rest of the insurance market today you need to start work on your difficult risk early."
Anderson says that underwriters want a complete picture the first time they look at the risk. Include MVRs for all operators and hardcopy loss runs for the difficult risk. Agents need to know what the insurers are willing to write. They also need to know the boating terminology if they are interested in pursuing boat business. "A lot can be learned by attending a boat show and talking with dealerships."
The following responded to our survey and indicated that they are a market for certain types of watercraft risk. You can also access www.insurancemarketplace.com for additional assistance.
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, with standard limits of up to $150,000 on hull and $500,000 on liability. Higher limits are available. American Modern is an A rated carrier.
American Reliable Insurance Co.
8655 E. Via de Ventura, Ste. E-200
Scottsdale, AZ 85258
Contact: Valley Owens, Michelle Ribaudo
Phone: (800) 535-1333
An insurance company (contact for availability), with values limits of up to $125,000 (higher may be available) and liability of up to $500,000. Target market is watercraft that is over 40 feet in length or with speed in excess of 70 mph. Can also offer watersport liability, uninsured boatowner, trailer, towing & assistance, med pay, personal property, replacement cost, agreed value, liability-only policies and various credits. American Reliable is an A rated carrier.
BAT Insurance Corp.
465 S. Beverly Dr.
Beverly Hills, CA 90212
Tony Trocino, CPCU
Phone: (310) 282-0753
Fax: (310) 282-7133
A surplus broker operating in CA and NV only with limits of $2 million. Can offer supplemental. A rated carriers are used to place coverage.
Brauer & Associates, Inc.
P.O. Box 20232
Columbus, OH 43220
Contact: Toni Montoney
Phone: (800) 695-0934
Fax: (614) 451-8810
E-mail: tonimontoney-brauer@rrohio.com
Web site: www.brauerins.com
An MGA/agency that operates in AR, AZ, CA, CO, CT, DE, FL, GA, IA, ID, IN, IL, KY, MN, MT, NC, ND, NE, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WA, WV and WI with unlimited limits. Target market is commercial fishing fleets. Will also offer passenger vessels, marina operators legal liability, hull and P&I, ship repairers legal liability, boat dealers, wharfingers/landing dock, ocean cargo, and six-pack charters. Carriers are ACE-INA, One Beacon America, and Great American.
Bruce V. Schneider Associates., Inc.
45 Middle Country Rd.
Middle Island, NY 11953
Contact: Andrea Cabrera, Office Manager
Phone: (800) 224-1707
Fax: (631) 698-6128
E-mail: amcbra@optonline.net
An MGA that operates throughout the continental United States with hull limits of $5 million, and P&I limits of $10 million. Target markets are high-performance-f/t live-a-board PWC to mega yachts and six-pack charters. (Open to licensed agents.) All domestic and admitted carriers are A rated.
Combined Resources
P.O. Box 1152
Medford, NY 11763
Contact: Richard Rossi, Celeste Noto
Phone: (800) 784-6775
An MGA that operates in DE, FL, NY and PA with limits of up to $5 million. Will consider all classes. Various A rated or better carriers are used to place coverage.
Continental/Marmorstein & Malone
P.O. Box 586
305 Rt. 17
Paramus, NJ 07652
William H. Malone Jr., VP
Phone: (800) 932-0849
Fax: (201) 261-8922
E-mail: bmalone@ca-group.com
Web site: www.ca-group.com
An MGA/ broker operating in NJ and NY. Can offer marinas (including GL), property, marina operators legal liability, hull and P&I, marine contractors, boat & watercraft rental, boat dealers, slip rental and boat shows. Carriers are Essex, Nautilus and Western World.
Evolution Insurance Broker Specialty
P.O. Box 4439
Sandy, UT 84091
Contact: F. Darrell Lindsey, President
Phone: (877) 678-7342
Fax: (801) 304-3800
Web site: www.eibdirect.com
An E&S broker that operates in all states with all limits available. Will consider all classes. Carriers are Prime Syndicate (C+) and Lloyd's (A-).
Global Marine Insurance Agency
1115 Munson Ave.
P.O. Box 6747
Traverse City, MI 49696
Contact: Matthew R. Anderson
Phone: (800) 748-0224
Fax: (231) 947-4407
E-mail: matt.anderson@quotemyboat.com
Web site: www.quotemyboat.com
An MGA that operates in all of the lower 48 states with limits of $20 million, P&I; and unlimited hull values. Target markets are all pleasure craft and commercial marine, including rental fleets and passenger vessels.
Can also offer uninsured boaters, pollution/spill liability, charter boat, personal property, fishing equipment, med pay, and towing. Carriers are Inamer, Markel, Royal, Zurich, Chubb, and Middlesex Mutual.
H.R. Keller & Co., Inc.
1520 Sheridan Dr.
Buffalo, NY 14217
Contact: Rob Martin, Sandi Smejles
Phone: (800) 424-2202
Fax: (716) 874-4920
A wholesaler that operates in NY only with limits that vary by company. Target market is jet ski (PWC) and high-performance boats. All water craft are welcome. Various admitted and nonadmitted carriers are used to place coverage.
Hull & Company, Inc.
2150 S. Andrews Ave.
Ft. Lauderdale, FL 33316
Contact: Donna Bowers
Phone: (800) 678-4855
Fax: (924) 524-0479
E-mail: dbowers@hullco.com
St. Petersburg, FL 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
Charlotte, NC
14120 Ballantyne Corporate Pl., Ste. 525
Charlotte, NC 28277
Contact: B.J. Denton
Phone: (800) 241-5855
Fax: (704) 540-7611
E-mail: bjdenton@hull.com
Web site: www.hullco.com
An E&S agent operating in all states with limits of $5,000 up. Target markets are personal watercraft, small boats, yachts/mega-yachts. Will also offer tenders, trailers, P&I, Jones Act, Longshore & Harborworkers Act, med pay, uninsured boaters, towing, and personal effects. Various A rated carriers are used to place coverage.
INAMAR Marine Marketing Specialists
18500 Von Karman Ave., Ste. 250
Irvine, CA 92612
Contact: David E. Worden, pleasure craft broker; Steve Lamirand, commercial broker
Phone: (800) 221-3884
Fax: (949) 955-7111
E-mail: inamar.agency@ace-ina.com
An MGA operating in all states except HI, NM, OK and WY with hull limits of up to $50 million and liability of up to $10 million. Excess is available. Will consider pleasure crafts of all sizes, along with most compatible commercial marine risks. Can also offer live-aboard coverage and extended navigational limits. The A rated or better carriers are ACE INA, AIG, CNA, Great American Navigators, National Casualty, and Zurich.
Insurance Center Special Risks, Ltd.
P.O. Box 1185
West Springfield, MA 01090
Contact: Leo Roberge, Ext. 353; Angela Cyrankowski, Ext. 350; Grace Gallardo, Ext. 346
Phone: (888) 773-7475
Fax: (413) 781-0050
E-mail: lroberge@insctrne.com acyrankowski@insctrne.com ggalardo@insctrne.com
Web site: www.specialrisksltd.com
An MGA operating in CT, MA, ME, NH, NY, RI and VT with hull limits of $2 million and liability limits of $2 million. Target markets are watercraft, personal watercraft, yacht rental operations, and charters. Can also offer pollution liability, available as a sub-limit or within limit of liability. Old United Casualty, Markel American, and One Beacon are the A rated or better carriers.
International Brokerage & Surplus Lines
120 E. Pine St., Ste. 11
Lakeland, FL 33801
Contact: Clyde Holliday, Janner Holliday
Phone: (800) 348-4275
Fax: (863) 687-4684
E-mail: info@ibsl.com
Web site: www.ibsl.com
An E&S broker that operates nationwide with hull and machinery limits of around $10 million, and P&I from $500,000 to unlimited liability. Target markets are yachts and sportfishing (target risks of $250,000 in hull values +). Can also offer maintenance--cure and other endorsements available.
Irvin B. Green & Associates, Specialty Insurance Markets
5086 North Lane
Orlando, FL 32808
Contact: Darla Molnar, Dawn Bentley, Linda Brewer
Phone: (877) 424-7336
Fax: (407) 295-5395
E-mail: ibgreen@ibgreen.com
An MGA operating in FL only with limits of $100,000. Target markets are run-abouts and commercial fishing. Can also offer jet ski and commercial watercraft. American Bankers, American Reliable and Market American are the A rated carriers.
J.M. Wilson
8036 Moorsbridge Rd.
Portage, MI 49024
Contact: Sue Pifer
Phone: (800) 678-8106
Fax: (269) 327-4854
E-mail: spifer@jmwilson.com
Web site: www.jmwilson.com
An MGA that operataes in IL, IN, MI, OH, PA and WI with limits of $300,000. Target markets are high-performance, personal watercraft, bass boats, and older yachts. Markel and American Modern are the A rated carriers.
John G. Alden Special Risks, Inc.
1300 SE 17th St., Ste. 220
Ft. Lauderdale, FL 33316
Contact: James Gallaudet, Scott Thompson
Phone: (800) 330-3370
Fax: (954) 525-0588
E-mail: jgallaudet@aldeninsurance.com sthompson@aldeninsurance.com
Web site: www.aldeninsurance.com
A broker that operates in all states and the Caribbean with limits of $50 million. Target markets are yachts, charter boats, marinas, boat dealers, and artsans. Will not write commercial fishing boats and PWCs. Can also offer coverage on all pleasure and commercial marine risks. All U.S. and U.K. carriers are A rated.
Markel American Insurance Co.
P.O. Box 906
Pewaukee, WI 53072
Contact: Lenny Richileau
Phone: (800) 236-2862
Fax: (262) 548-9448
E-mail: lrichile@markelcorp.com
Web site: www.markelmarine.com
An insurance company that operates in all 50 states with limits that are product specific. Most classes are considered. Can offer pollution liability, extended navigation, rental operations, bare boat charter, crewed charter, airboats and other specialty risks. Markel is an A rated company.
Midlands Management of Texas, Inc.
P.O. Box 794878
Dallas, TX 75379
Contact: John Posey
Phone: (888) 743-2628
Fax: (972) 588-2020
E-mail: jposey@midmantx.com
An MGA that operates nationwide with hull limits of $500,000 and P&I limits of $300,000. Target market is sport boats up to 90 mph. Lloyd's is the carrier.
Midwestern General Agency, Inc.
255 NW Blue Pky.
Lee's Summit, MO 64063
Contact: Joann Guyer, Jan Lampe
Phone: (816) 246-1200
Fax: (816) 246-1290
Web site: www.mgakcmo.com
An MGA that operates in AR, IL, KS, MO, NE, and OK with limits of up to $500,000. Target market is pleasure craft. Also offered are hull, personal effects, uninsured boaters, emergency service, and equipment damage. American Modern Home and Old United Casualty are rated A; First Marine is rated B++.
Mitchell, York & Cooper
1220 U.S. Highway One, Ste. D
North Palm Beach, FL 33408
Contact: Christopher Cooper, Stephen York
Phone: (800) 448-3327
E-mail: info@mycinsurance.com
Web site: www.mycinsurance.com
An E&S broker that operates nationwide. Target market is yachts. Also offered are marinas, boat dealers, cargo, marine contractors, marine artisans, motor truck cargo, and equipment. Essex, One Beacon, Great American, MOAC, and Scottsdale are the carriers.
National Marine Underwriters, Inc.
P.O. Box 4636
Annapolis, MD 21403
Contact: John Beachley, VP
Phone: (800) 262-8467
Fax: (410) 268-9764
E-mail: jbeachley@nmu.com
Web site: www.nmu.com
An agency that operates in all of the 48 contiguous states with hull limits of $500,000 and liability of $500,000. Target market is recreational marine. American Modern Insurance Group is the A rated or better carrier.
Old United Casualty Co., dba Vantage Casualty Co. in CA
P.O. Box 795
Merriam, KS 66201
Contact: Doug Semler, Ext. 291
Phone: (800) 866-6090
Fax: (800) 777-2628
E-mail: dsemler@vtaig.com
Web site: www.oldunited.comwww.naviguard.com
An insurer operating in all states except AK and HI. Limits are boats (less than 26 feet and less than $75,000 in hull, motor & trailer value) $75,000 hull and $500,000 watercraft liability; yachts (less than 26 feet or greater than $75,000 in hull value) $2 million hull and $1 million P&I. Target markets are Great Lakes business and inland waters. Also bass boats. Prohibitive classes are high-performance boats/yachts and antique/classic yachts. All policies include generous sub-limits for: uninsured boaters, med pay, personal effects, emergency service & towing. Yachts policies include additional coverage for underinsured boaters. Old United (dba Vantage Casualty in the state of CA only) is an A rated company.
Pacific Specialty Insurance
3601 Haven Ave.
Menlo Park, CA 94025
Contact: Jeffrey R. Kenny
Phone: (800) 828-3003
Fax: (650) 780-4835
E-mail: jkenny@mcgrawgroup.com
Web site: www.mcgrawgroup.com
An insurer that covers personal watercraft in all states and pleasure boats in CA only. Personal watercraft limits are $15,000, $25,000, $50,000, $100,000 and $300,000 (all CSL); pleasure boat limits are $25,000/$50,000/$10,000; $50,000/$100,000/$25,000; $100,000/$300,000/$50,000; and $300,000 CSL. Target market is personal watercraft/pleasure boats. Other coverages offered are personal watercraft: physical damage hull/liability package, liability only, trailers, med pay, six-month policy, and water sports liability. Pleasure boat: standard, mid-performance and high-performance programs, med pay, and physical damage (including trailer). Direct bill and discounts available. Pacific Specialty is an A rated company.
Prime Insurance Syndicate Inc./I.E.B.S.
P.O. Box 4439
Sandy, UT 84091
Contact: Rick J. Lindsey, Pete Anderson
Phone: (801) 304-5591
Fax: (801) 304-5595
E-mail: rjl@primeis.com
petea@primeis.com
Web site: www.primeis.com
An insurer that operates nationwide with all limits available. Will consider any class. Prime is rated C+; Lloyd's is an A rated company.
R.E. Chaix & Associates Insurers Brokers
1501 Westcliff Dr., Ste. 290
Newport Beach, CA 92663
Contact: Jo Sargent, Ext. 223
Phone: (949) 722-4177
Fax: (949) 722-4172
E-mail: jos@rechaixinsurance.com
An E&S broker that operates in CA plus inland lakes and rivers of continental United States and Canada. Liability Limits are $1 million (can do excess up to $20 million) and H&M limits are $5 million. Target market is private pleasure-owned boats. Will not write vessels exceeding 45 mph. Will also offer hull & machinery, protection & indemnity, personal effects, trailer CVG, uninsured boaters, and pollution. One Beacon America and American Modern Home are the carriers.
Robert A. Schneider Agency
5620 Smetana Dr., Ste. 225
Minnetonka, MN 55343
Contact: Jody Stolp
Phone: (800) 862-6038
Fax: (952) 938-0701
E-mail: rs@rasinc.com
Web site: www.rasinc.com
An MGA/E&S broker operating in IA, MN, ND, SD and WI with limits of $1 million. All classes are considered with marinas, jet ski rental and commercial watercraft also offered. Markel is the A rated carrier.
Roush Insurance Services, Inc.
P.O. Box 1060
Noblesville, IN 46061
Contact: Stacy Specht
Phone: (800) 752-8402 (IL, IN)
Fax: (317) 776-6891
Web site: www.roushins.com
An MGA that operates in IL and IN only with hull limits of $150,000; P&I of $500,000; med up to $10,000; boats & yachts, uninsured boaters up to $10,000. Target market is stand-alone coverage for boats and yachts. Can also offer boat equipment and mechanical breakdown. Old United Casualty is the A rated carrier.
Sea to Sea Insurance Services, Inc.
P.O. Box 515
Pismo Beach, CA 93448
Contact: Kurtis L. Limbo, President
Phone: (800) 732-2732 (SEA 2 SEA)
Fax: (805) 773-2010
An agency/broker operating in all 50 states with primary limits of $1 million and excess limits of $4 million. Can offer personal, commercial, excess and marinas. Markel, Essex, and Old United Casualty are the A rated carriers.
Ski-Safe / Sea Safe
One Hollow Lane
Lake Success, NY 11042
Contact: Howard Reiff, Ext. 208; David Strauss, Ext. 200; Valerie Gambino, Ext. 204
Phone: (800) 225-6560
Fax: same
Web site: www.skisafe.com
An MGA operating nationwide; contact for virtually any limits needed. Target markets are PWCs, ski boats, yachts, performance boats, antique/classic boats, pontoons, houseboats. Will not write rentals. Can also offer all-risks, agreed amount or ACV hull, P&I, waterskiing/watersports liability, optional discounted lay-up, waterskiing events, performance boats, and antique boats. ACE Group is the A rated or better carrier.
Symons International Group (Florida) Inc.
2300 Glades Rd., Ste. 135E
Boca Raton, FL 33431
Contact: Jane Otto
Phone: (800) 275-4348
Fax: (561) 392-2995
E-mail: jotto@florida-international.com
An MGA/E&S broker that operates worldwide (southeast Florida most difficult at this time). Limits are up to $5 million (P&I) and up to $5 million (H&M). Target markets are private pleasure, charter, brown water, excursion, excess P&I, bumbershoot. Can also offer pollution, builders risk, tender/trailer/personal articles/towing. One Beacon, AIG, and Lloyd's (all A rated) and Hamburger Versicherungs are the carriers.
Western Marine Insurance Services
4227 Coronado Ave.
Stockton, CA 95204
Contact: Sheri Geyer
Phone: (800) 922-4890
Fax: (209) 466-0260
Web site: www.aquapac.com
An MGA that operates in AZ, CA, CO, ID, MT, NM, NV, OR, UT and WA with P&I limits of $500,000 and hull of $500,000. Most classes are considered. Old United and Hannover are the carriers.
Western World Insurance Co.
400 Parson's Pond Dr.
Franklin Lakes, NJ 07417
Timothy P. Hochkeppel, VP
Phone: (201) 847-8600
Fax: (201) 847-1010
Web site: www.westernworld.com
An insurer that operates nationwide with limits of $1 million/$2 million. Target market is smaller/lighter risks. Will not write jet skis, waterskiing, diving risks, kayaks, and ocean exposures. Can also offer GL, property, and floaters. Western World and Tudor are the A rated or better carriers. *
