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Boat Risks   CBMU Semi Annual Presentation   Ted Macaulay
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Boat Risks CBMU Semi Annual Presentation Ted Macaulay

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KNOW THE RISK - Pleasure Craft Underwriting presentation at CBMU Semi-Annual conference May 2011, Westin Trillium House, Blue Mountain

KNOW THE RISK - Pleasure Craft Underwriting presentation at CBMU Semi-Annual conference May 2011, Westin Trillium House, Blue Mountain

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Transcript

  • 1. KNOW THE RISK Pleasure Craft Risk Assessment
  • 2. HOW DO YOU UNDERWRITE THIS?
  • 3. Launch Day - What a Beauty!
  • 4. Oops!
  • 5. Probably a Total Loss!
  • 6. KNOW THE RISK Underwriting risks to consider? What types of claims occur? Is the loss covered? How is the loss settled?
  • 7. Generally Available Coverage       All Risk, Agreed Value No deduction for depreciation on most vessels under 15 years old Limited “ACV” clauses Low deductibles 1% or less $2,000,000 P & I limits Very few exclusions – tough to mitigate
  • 8. Current Underwriting Issues      Boat values are dropping due to economic conditions Rates are not increasing Partial loss costs same or increasing Loss ratios are increasing Canadian dollar valuation?
  • 9. Common Types of Pleasure Craft        Fishing Wakeboard – Water Ski Cottage Boats PWC’s Cruisers – Yachts Sail Performance
  • 10. Aluminum Utility Boats
  • 11. Aluminum Fishing Boats
  • 12. Bass Boats
  • 13. Centre Console Fishing Boats
  • 14. Underwriting Risks        Use – Location, fishing tournaments Speed – Bass boats 70+ MPH Operator experience Mooring or storage – is it secure Theft exposure Fishing equipment limits Navigation / trailering extensions
  • 15. Types of Claims     Striking submerged objects – outboard motor & propeller damage Theft of boat, motor, electronics or fishing equipment Damage while towing Hull damage
  • 16. Concerns     Fishing rod/reel values $500+ (ACV or agreed value?) Client unhappiness with time to repair Metallic flake paint on Bass boats is expensive to repair Aluminum boats with hull damage may need to be returned to manufacturer to repair
  • 17. Wakeboard Boats
  • 18. Wake Surfing Boats
  • 19. Water Skiing Boats
  • 20. Underwriting Risks      Operators – Age Mooring / storage location Use Theft Liability BI & PD
  • 21. Types of Claims     Striking submerged objects Theft of equipment, personal effects Property damage? Personal injury?
  • 22. Concerns     Liability limits Time to repair Personal effects limits Will there be more liability claims for property damage due to size of wakes being created
  • 23. Sport Jet Boats
  • 24. Family Jet Boats
  • 25. Fiberglass Runabouts
  • 26. Multi Use Fish & Ski Boats
  • 27. Pontoon Boats
  • 28. Underwriting Risks      Operators – Single operator, family, friends, cottage renters… Ingestion – Jet boats Moored or trailered Speed, horsepower Age of boat
  • 29. Types of Claims      Striking submerged objects Theft – Boat, motor, trailer, equipment Impeller damage – Jet boats Damage from wind, water, waves while moored and unattended Sinking after launch
  • 30. Concerns        Multiple operators Alcohol Storage location Theft Lack of survey’s for 15+ year old boats Lack of underwriting Pollution Liability?
  • 31. Personal Watercraft - Sport
  • 32. Personal Watercraft - Cruising
  • 33. Underwriting Risks       Operators, experience Loaning or borrowing Location – Use & storage Ingestion Liability – Especially bodily injury Speed, horsepower
  • 34. Types of Claims      Theft Impeller – Engine damage Liability – Bodily injury Property damage Hull – Physical damage
  • 35. Concerns       Agreed value or ACV High horsepower / speed Cost of new PWC’s Portability Operators Bodily Injury
  • 36. Small Cruisers
  • 37. Large Cruisers
  • 38. Yachts
  • 39. Underwriting Risks        Operators, captain, crew Location of use Navigation territory Propane on board Heaters Storage, winterization Liability
  • 40. Types of Claims       Striking submerged objects Theft of equipment, electronics, tender Lightning, wind, water Machinery damage Emergency medical, bodily injury Fire
  • 41. Concerns        Depreciated values Navigation extensions Liability risk in USA Proper surveys Repair expense vs. insured value Lack of Rate High additional limits of cover
  • 42. Sailing Dinghy
  • 43. Small Racing Sailboats
  • 44. Inland Sail Boats
  • 45. Large Sailing Yachts
  • 46. Underwriting Risks        Fire, lightning, wind, water Navigation extensions Liability exposure Racing Crew Live-a-boards Propane, heating
  • 47. Types of Claims       Damage while at anchor Sails (ACV?) Lightning strikes, wind, water, waves Fire, electrical Theft from marinas / yacht clubs especially early or late in season Tender, dinghy
  • 48. Concerns       Age of fleet Self maintenance Client expectations Repair expense vs. insured value Crew liability Navigation extensions
  • 49. High Performance Runabout
  • 50. Tunnel Hull
  • 51. Offshore - V Bottom
  • 52. Offshore - Catamaran
  • 53. Underwriting Risks        Operator, experience, CV? Speed Storage security Trailering Navigation extensions Speed tests, racing, poker runs Liability
  • 54. Types of Claims       Striking submerged objects Damage to stern drives, propellers Theft of stern drives, entire boat, trailer Paint damage - $$$$ Vandalism Bodily injury
  • 55. Claim Concerns       Boat values diminishing Most coverage is agreed value Limited ACV clauses Repair expense vs. insured value Limited service/repair facilities for this type of vessel Liability limit exposure w/o premium
  • 56. Claim Concerns for all Boat Types      Alcohol, drowning Lack of proper training Ability to purchase and operate without proof of competency Lack of a central claim registry to track pleasure boat claims Operator Card
  • 57. And Finally, Most Pleasure Craft policies cover just about everything including stupidity……. Enjoy the following
  • 58. Fire
  • 59. Fire Sinking
  • 60. Fire Sinking Collision
  • 61. Fire Sinking Collision Grounding
  • 62. Fire Sinking Collision Grounding Collapse
  • 63. Fire Sinking Collision Grounding Collapse Falling Objects
  • 64. Fire Sinking Collision Grounding Collapse Falling Objects Submerged Objects
  • 65. Happy Underwriting