SPECIALTY LINES MARKETS
Not as many waves
By Larry G. France
As part of an improving economy, there will be some increase in watercraft sales. ... With approximately 80% of agencies placing some watercraft business, this increase is good news.
Some positive aspects have surfaced in the field of watercraft insurance. Overall, the rate increases are slowing down--some even to single digits. Markets are still willing to write good business. Even watercraft rental coverage is available again, although it is very tightly underwritten.
As part of an improving economy, there will be some increase in watercraft sales. Ownership of watercraft is a luxury item. The recent slow economy has affected the sale of new units. With approximately 80% of agencies placing some watercraft business, the increase is good news.
The underwriting of watercraft has been very tight. Carriers willing to place business are asking for detailed information regarding operators, type of craft, the location of the principal body of water of operation, and where the craft is stored.
Just to protect your agents' E&O and take proper care of your client, be sure all equipment used in conjunction with craft is covered on the boat policy homeowners policy--in some cases, a commercial policy may be needed. If the client lives along the coast and may navigate in offshore waters, provide that information. This may prevent a claim denial in the future. Does your client participate in any types of tournaments and will that exclude coverage?
Robert Wells, president of First Flight Insurance Group in Kitty Hawk, North Carolina, provides coverage for water sports risks. Wells assesses the market for 2004 by saying that it comes as no surprise that the marine market is not immune to the factors affecting other insurance markets today. "Premium is no longer the driving force in the placement of coverage," says Wells. "Simply finding available marine products with 'A' rated carriers is one of the biggest challenges for agents. Underwriters, who at one time balanced growth with profitability, are now focusing primarily on the selection process. Corporate managers are placing the emphasis on the underwriting and re-underwriting of risks and are scaling back their overall marketing programs. Insurers are requiring higher minimum premiums and minimum limits of their insureds."
Wells states that the water sports markets are few and far between. "Operations involving jet ski, motor boat, kayak and canoe rentals, and parasailing operations can expect a 15% to 20% rate increase and only if they meet certain stringent underwriting criteria," he explains. "Carriers are looking for customers who exhibit a strong commitment to risk management. Controls pertaining to maintenance and safety programs, screening of participants, and the training and management of employees are weighted heavily in the selection process. Waivers, Warranties of Compliance and other critical documentation are no longer optional in most markets."
The current economy has affected sales of pleasure craft, although sales of yachts with values over $1 million have maintained a steady pace, says Wells. "We are anticipating an increase in the sales of small recreational boats as the economy takes an upward trend. Another trend is the reduction of physical damage claims on boats. This is due to claims now covered by manufacturers' warranties."
Wells goes on to state that the increased premiums, better selection process and reduction in physical damage losses should all combine to encourage greater market availability for the good risk. Agents are encouraged to educate their customers on the importance of good risk management for their own benefit and the overall sustainability of the marketplace.
The following companies have indicated that they can provide coverages for watercraft exposures primarily centered on yachts and other pleasure craft, water sports rental, jet pump boats and sportfishing risks. For additional information go to www.insurancemarketplace.com. This free site contains information from the 2004 Insurance Marketplace directory.
American Modern Insurance Group
P.O. Box 5323
Cincinnati, OH 45201
Contact: Sales Administration
Phone: (800) 759-9008
E-mail: thayden@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 or better carrier.
American Reliable Insurance Co.
8655 E. Via de Ventura, Ste. E-200
Scottsdale, AZ 85258
Contact: Doug Ulery, Roger Vossen
Phone: (800) 535-1333
An MGA that operates in most states--excluding AK--with hull value limits of up to $200,000 and liability up to $500,000. Target market is pleasure craft up to $200,000. Will not consider commercial use or any use other than pleasure craft. American Reliable is an A rated carrier.
Atlass Insurance Group
1300 SE 17th St., Ste. 220
Ft. Lauderdale, FL 33316
Contact: Jim Gallaudet, Lorrie Nero
Phone: (800) 330-3370
Fax: (954) 525-0588
E-mail: jgallaudet@atlassinsurance.com
Web site:www.atlassinsurance.com
An E&S broker that operates in all states and worldwide with limits of $50 million. Target market is all watercraft--personal and commercial. Will not write airboats. Can also offer worldwide navigation, charter and rental. Various A rated carriers are used to place coverage.
BAT Insurance Corp.
465 S. Beverly Dr.
Beverly Hills, CA 90212
Contact, Tony Trocino
Phone: (310) 282-0753
Fax: (310) 282-7133
E-mail: trotony@earthlink.net
An E&S broker that operates in CA only with limits of $2 million. Can offer marine operators liability and ocean cargo. AIG, Great American, and Lloyd's are the A rated carriers.
Bohrer, Croxdale & McAdoo, Inc.
P.O. Box 2760
Springfield, MO 65801
Contact: Donna Allen
E-mail: dallen@bcmins.com
An MGA that operates in AR, IL, KS and MO with limits of $1 million. Target market is personal watercraft on inland lakes in the Midwest only--no coastal. Will not consider water skis/bikes, no rental coverages available. Various carriers are used to place coverage.
Burns & Wilcox Ltd.
220 Kaufman Financial Center
Farmington Hills, MI 48334
Contact: Call 800 number for local branch
Phone: (800) 521-1918
An MGA that operates in all states except AL and NY with limits of $500,000. Target market is nonstandard risk. Will not write multi-lines. Can offer P&I. Various A rated carriers are used to place coverage.
The Colonial Group, Inc.
4411 W. Market St., Ste. 400
Greensboro, NC 27407
Contact: Vickie Isley
Phone: (800) 628-3762
Fax: (336) 855-1190
Web site: www.thecolonialgroup.com
An MGA operating in GA, NC, SC, TN and VA with limits of $100,000/$300,000. Target market is pleasure watercraft, personal watercraft and sailboats. American Modern Home and American Reliable are the carriers.
Corporate Advisors Inc.
P.O. Box 429
McHenry, IL 60051
Contact: Kenneth Hill
Phone: (888) 895-6930
Fax: (815) 363-6931
E-mail: k.hill@4corporateadvisors.com
Web site: www.4corporateadvisors.com
A wholesale/retail broker that operates in all states with limits of $100,000 up. Will consider all watercraft. Various A rated or better carriers are used to place coverage.
Eagle Marine Underwriters
P.O. Box 1701
Orlando, FL 32802
Contact: Thomas Cotton
Phone: (800) 444-6503
An MGA that operates in FL only with limits of $1 million. Target market is pleasure boats less than 35 feet long. Will not consider charter and commercial. Various carriers are used.
Evolutions Insurance Brokers International (EIB International)
8722 Harrison St.
Sandy, UT 84070
Contact: F. Darrell Lindsey
Phone: (877) 678-7342
Fax: (801) 304-3800
E-mail: fdl@eibdirect.com
Web site: www.eibdirect.com
An E&S broker that operates in all states with all limits available. Will consider all classes. Prime Insurance Syndicate is rated B-, and Lloyd's is in the A range.
First Flight Insurance Group, Inc.
4112 N. Croatan Hwy.
P. O. Box 1048
Kitty Hawk, NC 22949
Contact: Clint Midkiff
Phone: (252) 261-1903
Fax: (252) 261-0292
E-mail: cmidkiff@southerninsurance.com
An E&S broker that operates throughout the United States, in the U.S. Virgin Islands and in Canada with limits of $4 million. Target markets are parasail operations, watersports rentals (boats and Jetskis, kayaks, canoes), snorkel and dive boats, tour boats, waterski/waterboard schools, yachts, boat dealers, and marinas. Will not consider high-speed vessels, or vessels with three or more engines. All carriers are A rated or higher.
Foremost Insurance Group of Companies
P.O. Box 2450
Grand Rapids, MI 49501
Contact: Heather Tobak
Web site: www.foremost.com
An insurer operating in all states except FL. Target market is boats 26 feet and under, as well as personal watercraft. Can also provide hull and liability coverage as well as personal property and towing options. Foremost is an A rated carrier.
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
Web site: www.hullco.com
St. Petersburg, FL office
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 office
14120 Ballantyne Corporate Pl., Ste. 525
Charlotte, NC 28277
Contact: B.J. Denton
Phone: (800) 241-5855
Fax: (704) 540-7611
E-mail: bjdenton@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 Recreational Marine Insurance
1601 Chestnut St., TL28
Philadelphia, PA 19103
Contact: Peter Lafontaine
Phone: (215) 640-2609
Fax: (215) 640-5025
E-mail: peter.lafontaine@ace-ina.com
recreational.marine@ace-ina.com
Web site: www.inamarmarine.com
An insurer operating in all states (worldwide navigation available), with unlimited hull limits (special programs for over $2 million) and unlimited P&I limits. Target markets are boats, yachts, six-pac charter vessels, mega-yachts, boat dealers, marinas and yacht clubs. Will not write watersports rental or bareboat chartered powerboats. Can also offer personal property, medical payments, wreck removal, towing & assistance, uninsured boater, salvage & expense, USL&H, pollution liability, and defense costs. ACE American Insurance is rated A.
Insurance Innovators Group
130 S. Easton Rd.
P.O. Box 969
Glenside, PA 19038
Contact: Cheryl Braker
Phone: (800) 523-6422
Fax: (215) 886-2482
E-mail: cheryl@iiigroup.com
Web site: www.iiigroup.com
An MGA/E&S broker that operates in DE, MD, NJ and PA with limits of $20,000-$300,000, depending on the program. Can offer water sport liability, trailer accessory, and uninsured boater. American Reliable is the A rated carrier.
International Excess Agency, Inc.
26451 Curtiss Wright Pky., Ste.103
Cleveland, OH 44143
Contact: Diane Madigan
Phone: (800) 937-3497
Fax: (888) 291-1382
E-mail: diane@internationalexcess.com info@internationalexcess.com
An E&S broker that operates nationwide (depending on state tax filings required) with limits of $5 million on hull and protection and indemnity -- builders risk as well as operating, excess and increased value, and $5 million on excess protection and indemnity. Target markets are personal & commercial watercraft operators, marinas, and boat builders (repair, etc.) Does not write crew P&I (Jones Act) exposure. Can offer marine GL (including products), marina operators legal liability and/or ship repairers legal liability, boat moorage/storage, boat repair/sales, wharfingers, stevedores legal, boat dealers inventory and demo liability, and artisan contractors specializing in boat repair at premises of others. Essex is the A rated or above carrier.
John W. Fisk Co.
4833 Conti St.
New Orleans, LA 70119
Contact: John Fisk
Phone: (888) 486-5411
E-mail: insure@jwfisk.com
Web site: www.jwfisk.com
A wholesaler/E&S broker that operates in all states with any limits required. Target markets are marine contractors, oceanographers, charter boats, dinner cruise boats, construction barges, and workboats. Will not consider airboats or houseboats. Can also offer marine GL, contractor's equipment, maritime employers liability, and excess/umbrella. All carriers are A rated and most are admitted.
Marine Underwriters Agcy., Inc.
P.O. Box 3667
Pawleys Island, SC 29585
Contact: Robert R. Kinsey
Phone: (800) 631-2147
Fax: (800) 548-0501
E-mail: rrkinsey@sc.rr.com
Web site: www.marineunderwriters.com
A wholesale agent that operates in AL, AR, CT, DE, FL, GA, IA, IL, IN, KY, LA, MA, MD, ME, MI, MN, MO, MS, NJ, NH, NY, NC, OH, OK, PA, RI, SC, TN, TX, VA, VT, WVA and WI with unlimited hull limits and P&I of $1 million-$20 million for larger risks. Target markets are yachts and pleasure boats. Will not consider rentals. All carriers are A rated admitted U.S. companies.
Marine Expert
5900 Cousineau Blvd., Ste 300
St-Hubert, Quebec, CA J3Y7R9
Contact: (Ontario) Sylvain Tisi, (Quebec) Chantal Premeau
Phone: (Ontario (866) 671-3030 (Quebec) (888) 671-3030
An MGA that operates in Quebec, Ontario, and British Columbia with liability limits of $2 million and hull of $1 million. Will not write offshore catamarans, wooden boats, or tunnel boats. Carriers are Lombard Canada and Aviva Elite.
Markel American Insurance Co.
P.O. Box 906
Pewaukee, WI 53072
Contact: Lenny Richileau, Ext. 3359
Phone: (800) 236-2862
Fax: (262) 548-9448
Web site: www.markelmarine.com
An insurer that operates in all states with specialty marine programs: hull limits to $750,000, liability to $1 million, and helmsman yacht program: hull to $5 million, liability (P&I) to $10 million. Target markets are: specialty marine-high performance and ultra-high performance (including catamaran hulls), airboats, trouble operator, specialty boats and standard boats under 26 feet, specialty commercial including rental operations; yacht-midrange yachts, 26 feet - 75 feet, owner operator for pleasure use. Will write uninsured boater, medical payments, towing, personal effects, tender and rental reimbursement. Will not write large charter vessels with crew, or PWC rental operations in FL.
Midlands Management Corp.
P.O. Box 794878
Dallas, TX 75379
Contact: Dewey Isham, Colin Caldwell
Phone: (888) 743-2628
Fax: (97) 588-2020
E-mail: disham@midmantx.com ccaldwell@midmantx.com
An MGA that operates in a majority of the states excluding TX and FL coastal-within 50 miles of the coast. Hull limits are $2 million. Will consider all personal watercraft agents. Will not write commercial vessels. Can also offer liability and medical programs. All carriers are A rated.
National Marine Underwriters, Inc.
410 Severn Ave., Ste. 207
Annapolis, MD 21403
John Beachley
Phone: (800) 262-8467
Fax: (410) 268-9764
E-mail: jbeachley@nmu.com
Web site: www.nmu.com
An agency that operates in all states except AK and HI with limits of $400,000. American Modern is the A rated carrier.
Old United Casualty Co., dba Vantage Casualty Co. in CA
8500 Shawnee Mission Pky., Ste. 120
P.O. Box 795
Merriam, KS 66201
Contact: Douglas E. Semler
Phone: (800) 866-6090
Fax: (800) 777-2628
E-mail: dsemler@vtaig.com
Web site: www.oldunited.com
An insurer/company that operates in all states except AK, FL and HI with limits of boats: (greater than 26 feet and $75,000 value) hull up to $75,000/watercraft liability $500,000; yachts: (26 feet or $75,000 value) hull up to $2 million/P&I up to $1 million. Target markets are Great Lakes, inland waters and Northeast/Middle Atlantic Coast waters. Will not write bareboat charters, high-performance, or antique/classic watercraft over 26 years old. Can offer emergency service & towing, personal effects, medical payments, uninsured boaters, contaminant/oil spill liability, underinsured boaters (yachts only), and mechanical breakdown coverage.
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. Limits available are (personal watercraft): $15,000, $25,000, $50,000, $100,000 and $300,000 (all CSL); pleasure boat: $25,000/$50,000/$10,000 $50,000/$100,000/$25,000, $100,000/$300,000/$50,000 and $300,000 CSL. Can offer for personal watercraft: physical damage hull/liability package, liability only, trailers, medical payments, six-month policy, and water sports liability (direct bill and discounts available); pleasure boat: standard, mid-performance/high-performance programs, medical payments, and physical damage including trailer (direct bill and discounts available). Pacific Specialty is an A rated carrier.
Philadelphia Insurance Co.
One Bala Plaza, Ste. 100
Bala Cynwyd, PA 19004
Contact: Marisa Burke, Dave Brenner
Phone: (800) 873-4552
Fax: (610) 617-7940
E-mail: phlysales@phlyins.com
Web site: www.phly.com
An insurer that operates in all states except AK, LA, MS and NM, with limits of $1 million. Target market is boat dealers (50% of sales should be boat, minimal repair work and storage). Will <I>not<I> write marinas, boat builders, or boat dealers with risky supplemental products. Philadelphia Indemnity Insurance Cos. are A rated.
Prime Insurance Syndicate Inc./I.E.B.S.
P.O. Box 4439
Sandy, UT 84091
Contact: Rick J. Lindsey
Phone: (801) 308-8704
Fax: (801) 304-3702
E-mail: fjl@primeis.com
Web site: www.primeis.com
An insurer that operates in all states with all limits available. Will consider all classes. Prime is rated B-; Lloyd's is in the A range.
Robert A. Schneider Agency
5620 Smetana Dr., Ste. 225
Minnetonka, MN 55343
Contact: Jody Stolp
Phone: (800) 862-6038
E-mail: rs@rasinc.com
Web site: www.rasinc.com
An MGA/E&S broker that operates in IA, MN, ND, SD and WI with limits of $1 million. Target markets are commercial, preferred personal, high-performance personal, and jet ski. Can offer general liability for premises exposure and for commercial risks. Markel is the A rated carrier.
Russell Bond & Co., Inc.
295 Main St., Ste. 866
Buffalo, NY 14203
Contact: Jayme Kralick, Ext. 263
Phone: (800) 333-7226
Fax: (716) 695-0403
E-mail: boats@russellbond.com
An MGA/E&S broker operating in CT, MA, NJ, NY, OH, PA and UT with liability limits of up to $50 million and hull values up to $20 million. Target market is all types of watercraft including power boats, sailboats up to 45 feet, speed boats up to 60 mph (liability only, corporate titled) multi-owner, and wooden boats. Can also offer uninsured boaters, pollution/spill, towing & labor, waterski liability, personal effects, and miscellaneous equipment. Various A rated or better carriers are used to place coverage.
Ski-Safe / Sea Safe
One Hollow Lane
Lake Success, NY 11042
Contact: Howard Reiff, Valerie Gambino
Phone: (800) 225-6560
Fax: same
E-mail: inquiry@skisafe.com
Web site: www.skisafe.com
An MGA/program administrator that operates in all states with all limits considered for hull, P&I limits of $1 million on PWC; and $5 million on yachts (higher limits considered). Target markets are PWC, ski boats antique/classic, pontoons, houseboats, yachts, bass fishing boats, performance boats. Liability only is also available. Can offer watersports liability, Jones Act, and antique and classic. Ace American is the A rated carrier.
Southern Insurance Underwriters, Inc.
P.O. Box 105609
Atlanta, GA 30348
Contact: Roger Shelton
Phone: (800) 884-1706
Fax: (678) 498-4769
E-mail: rshelton@siuins.com
An MGA that operates in most states with P&I limits of up to $10 million. Target markets are personal watercraft, bass boats, houseboats, yachts, and high-performance boats. Will not consider classic or antique. Can offer boat dealers, boat rentals and marinas. All carriers are A rated.
Surplus Insurance Brokers Agency, Inc.
P.O. Box 749
South Bend, IN 46624
Contact: Jo Ann Laatz, Pat Sorberg
Phone: (800) 342-5706
Fax: (800) 578-7758
Web site: www.surplus.com
An MGA that operates in IN only with limits of $300,000. Will not consider boats with a top speed of 56 mph or value over $150,000. Can offer jet ski coverage. American Modern Home is the 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: jlotto@sigfl.com
An MGA/E&S broker that operates countrywide (workboats) and in AK, CA, FL, GA, KS, LA, ME, MO, MN, MS, NY, PA, SC and TX (yachts). With hull limits of up to $2 million and P&I up to $5 million. Target markets are charter boats, excursion boats, work boat fleets, tugs & barges fleets, and yachts. Will not consider water sports or personal watercraft. Can offer medical payments, uninsured boaters, pollution, tender, trailer, personal property, and towing. AIG, Great American, and Great Lakes are the carriers.
Trafalgar Marine Insurance Services, Inc.
18500 Von Karman Ave., Ste. 250
Irvine, CA 92612
Contact: Diane Carrillo, yachts; Leah Katz, commercial marine
Phone: (800) 221-3884
Fax: (949) 955-7111
E-mail: info@trafalgarinsurance.com
Web site: www.trafalgarinsurance.com
An MGA that operates in all states except HI and AK with hull limits to $50 million, liability limits to $10 million, and excess liability up to $50 million. Target market is all marine risks, especially pleasure craft, marinas, boat dealers and ship repairers. Will not consider non-marine risks. Can offer live-aboard coverage, extended navigation, MOLL, SRLL. The A rated or better carriers are ACE INA, AIG, American Reliable, CNA, Essex, Fireman's Fund, Great American, Navigators, National Casualty, and Zurich.
Western Maritime Insurance Services
4226 Coronado Ave.
Stockton, CA 95207
Contact: Jeana Ramos (north), Lelora Petersen (south)
E-mail: jramos@aquapac.com
lpetersen@aquapac.com
Web site: www.aquapac.com
An agency/program manager that operates in 11 western states with liability limits of $2 million and property limits of $5 million. Target markets are recreation marine, boat dealers, marinas, rental, boat repair, boat manufacturers, marine retail stores, boat/yacht risks, and full range. Will not consider blue water marine. Can also offer Aquapac Commercial Recreation, Marine Group Package Program, NewPac Millenium Boat/Yacht Group Program. Clarendon, Insurance Corp. of Hannover, and Old United Casualty are the A rated carriers.
Western World Insurance Co.
400 Parson's Pond Dr.
Franklin Lakes, NJ 07417
Contact: Timothy P. Hochkeppel
Phone: (201) 847-8600
Fax: (201) 847-1010
Web site: www.westernworld.com
An insurer that operates in all states with limits of $1 million/$2 million GL (no surety). Target markets are smaller/lighter risk and some white water risks. Will not consider jet skis, waterskiing, diving risks, kayaks or ocean exposures. Can offer GL, property and floaters. Western World and Tudor are the A rated or better carriers.*