The marine insurance landscape today is both complex and dynamic. Changes are happening frequently and often in surprising ways. The dramatic increase in boat purchases amid the pandemic, by new boaters and current boaters alike, has significantly impacted not only the marine supply chain, but also the insurance market and underwriting parameters. The increase in demand for yacht policies is resulting in substantial pressure on an already competitive marine insurance market. Advanced technologies that are integrated into marine construction, materials, rigging systems, and on-board electronics have created new challenges and complexities for underwriters. While the reality of today’s insurance marketplace can feel overwhelming to boat owners and buyers, there are smart ways to navigate forward.
Key elements of a strong boat insurance submission. It is helpful to have a clear understanding of what makes a risk most attractive to an underwriter and to different insurance companies. In nearly all cases, the underwriting company wants to know that you and your boat are a good risk. Underwriters scrutinize each risk and expect detailed background information to accompany each application. Boat owners should work with their insurance broker to determine which of the below listed supplemental materials are needed to make for a strong, attractive submission for marine insurance.
- Boating Resume - detailing boating experience (owning and operating), licenses, certifications, expertise areas, etc.
- Prior Boat Ownership – list of similar sized vessels with dates of ownership and navigation areas (if no relevant prior ownership, a captain may initially be required)
- Paid Captain Resume (if applicable) – detailed experience, including claims history
- Paid Crew Resume(s) (if applicable) – detailed experience, including claims history
- Accredited NAMS/SAMS Marine Survey (less than 3 years old) - including confirmation of survey recommendation completion
- Hurricane/Storm Plan - if boat will be in areas prone to Hurricanes or severe weather patterns
- Absentee Owner Plan - if boat will be left unattended for periods of time
- Maintenance Service Records – may be needed in the event of a claim or if an insurance company asks for proof of improvements
- Boating Safety & Claims Records – helpful in the underwriting process
- Personal Insurance Portfolio (homes, autos, valuables) – can be helpful when considered as part of a packaged submission with your request for marine insurance
Working with a Specialized Marine Insurance Broker can make the difference. An experienced marine insurance broker can help a boat owner work through most challenges to secure insurance solutions. The marine insurance broker will advise the boat owner on which supplemental materials are needed to support their insurance application, and often can provide templates to facilitate the creation of these materials. Boat owners and buyers should seek out a broker that is active in today’s dynamic marine insurance marketplace, has strong relationships with marine insurance companies and underwriters, and has access to a wide range of marine insurance solutions. The broker should be well versed not only in risk management and insurance placements, but also knowledgeable about a wide range of boat types, marine electronics and technologies, marine construction, cruising plans, racing schedules, safety equipment, navigation areas, and hurricane zones. Timing also matters. Boat owners and prospective boat owners should connect with a specialized insurance broker very early in the boat buying process to allow for ample time to secure the best insurance solution possible.
Risk Strategies’ marine insurance advisors are here to help. Gowrie Group, the marine specialty division of Risk Strategies, has a team of marine insurance advisors who stand ready to help boat owners and prospective owners navigate the process of securing yacht insurance in today’s market.
Learn More
Connect with John Fisher on LinkedIn
Email John at johnf@gowrie.com
Connect diretcly with the Gowrie Marine Team at boats@gowrie.com
