KNOW THE RISK

Pleasure Craft Risk Assessment
HOW DO YOU UNDERWRITE
THIS?
Launch Day - What a Beauty!
Oops!
Probably a Total Loss!
KNOW THE RISK
Underwriting risks to consider?
What types of claims occur?
Is the loss covered?
How is the loss settled?
Generally Available Coverage
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All Risk, Agreed Value
No deduction for depreciation on most
vessels under 15 ...
Current Underwriting Issues
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Boat values are dropping due to
economic conditions
Rates are not increasing
Parti...
Common Types of Pleasure Craft
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Fishing
Wakeboard – Water Ski
Cottage Boats
PWC’s
Cruisers – Yachts
Sail
Pe...
Aluminum Utility Boats
Aluminum Fishing Boats
Bass Boats
Centre Console Fishing Boats
Underwriting Risks
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Use – Location, fishing tournaments
Speed – Bass boats 70+ MPH
Operator experience
Moor...
Types of Claims
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Striking submerged objects – outboard
motor & propeller damage
Theft of boat, motor, electronic...
Concerns
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Fishing rod/reel values $500+ (ACV or
agreed value?)
Client unhappiness with time to repair
Metallic f...
Wakeboard Boats
Wake Surfing Boats
Water Skiing Boats
Underwriting Risks
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Operators – Age
Mooring / storage location
Use
Theft
Liability BI & PD
Types of Claims
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Striking submerged objects
Theft of equipment, personal effects
Property damage?
Personal injury...
Concerns
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Liability limits
Time to repair
Personal effects limits
Will there be more liability claims for
property...
Sport Jet Boats
Family Jet Boats
Fiberglass Runabouts
Multi Use Fish & Ski Boats
Pontoon Boats
Underwriting Risks
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Operators – Single operator, family,
friends, cottage renters…
Ingestion – Jet boats
Moored...
Types of Claims
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Striking submerged objects
Theft – Boat, motor, trailer, equipment
Impeller damage – Jet boat...
Concerns
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Multiple operators
Alcohol
Storage location
Theft
Lack of survey’s for 15+ year old boats
Lack of...
Personal Watercraft - Sport
Personal Watercraft - Cruising
Underwriting Risks
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Operators, experience
Loaning or borrowing
Location – Use & storage
Ingestion
Liability –...
Types of Claims
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Theft
Impeller – Engine damage
Liability – Bodily injury
Property damage
Hull – Physical damag...
Concerns
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Agreed value or ACV
High horsepower / speed
Cost of new PWC’s
Portability
Operators
Bodily Injury
Small Cruisers
Large Cruisers
Yachts
Underwriting Risks
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Operators, captain, crew
Location of use
Navigation territory
Propane on board
Heaters
...
Types of Claims
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Striking submerged objects
Theft of equipment, electronics, tender
Lightning, wind, water
Ma...
Concerns
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Depreciated values
Navigation extensions
Liability risk in USA
Proper surveys
Repair expense vs. ...
Sailing Dinghy
Small Racing Sailboats
Inland Sail Boats
Large Sailing Yachts
Underwriting Risks
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Fire, lightning, wind, water
Navigation extensions
Liability exposure
Racing
Crew
Live-...
Types of Claims
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Damage while at anchor
Sails (ACV?)
Lightning strikes, wind, water, waves
Fire, electrical
...
Concerns
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Age of fleet
Self maintenance
Client expectations
Repair expense vs. insured value
Crew liability
N...
High Performance Runabout
Tunnel Hull
Offshore - V Bottom
Offshore - Catamaran
Underwriting Risks
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Operator, experience, CV?
Speed
Storage security
Trailering
Navigation extensions
Speed...
Types of Claims
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Striking submerged objects
Damage to stern drives, propellers
Theft of stern drives, entire ...
Claim Concerns
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Boat values diminishing
Most coverage is agreed value
Limited ACV clauses
Repair expense vs....
Claim Concerns for all Boat Types
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Alcohol, drowning
Lack of proper training
Ability to purchase and operate ...
And Finally,
Most Pleasure Craft policies
cover just about everything
including stupidity…….
Enjoy the following
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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

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Boat Risks CBMU Semi Annual Presentation Ted Macaulay

  1. 1. KNOW THE RISK Pleasure Craft Risk Assessment
  2. 2. HOW DO YOU UNDERWRITE THIS?
  3. 3. Launch Day - What a Beauty!
  4. 4. Oops!
  5. 5. Probably a Total Loss!
  6. 6. KNOW THE RISK Underwriting risks to consider? What types of claims occur? Is the loss covered? How is the loss settled?
  7. 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. 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. 9. Common Types of Pleasure Craft        Fishing Wakeboard – Water Ski Cottage Boats PWC’s Cruisers – Yachts Sail Performance
  10. 10. Aluminum Utility Boats
  11. 11. Aluminum Fishing Boats
  12. 12. Bass Boats
  13. 13. Centre Console Fishing Boats
  14. 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. 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. 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. 17. Wakeboard Boats
  18. 18. Wake Surfing Boats
  19. 19. Water Skiing Boats
  20. 20. Underwriting Risks      Operators – Age Mooring / storage location Use Theft Liability BI & PD
  21. 21. Types of Claims     Striking submerged objects Theft of equipment, personal effects Property damage? Personal injury?
  22. 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. 23. Sport Jet Boats
  24. 24. Family Jet Boats
  25. 25. Fiberglass Runabouts
  26. 26. Multi Use Fish & Ski Boats
  27. 27. Pontoon Boats
  28. 28. Underwriting Risks      Operators – Single operator, family, friends, cottage renters… Ingestion – Jet boats Moored or trailered Speed, horsepower Age of boat
  29. 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. 30. Concerns        Multiple operators Alcohol Storage location Theft Lack of survey’s for 15+ year old boats Lack of underwriting Pollution Liability?
  31. 31. Personal Watercraft - Sport
  32. 32. Personal Watercraft - Cruising
  33. 33. Underwriting Risks       Operators, experience Loaning or borrowing Location – Use & storage Ingestion Liability – Especially bodily injury Speed, horsepower
  34. 34. Types of Claims      Theft Impeller – Engine damage Liability – Bodily injury Property damage Hull – Physical damage
  35. 35. Concerns       Agreed value or ACV High horsepower / speed Cost of new PWC’s Portability Operators Bodily Injury
  36. 36. Small Cruisers
  37. 37. Large Cruisers
  38. 38. Yachts
  39. 39. Underwriting Risks        Operators, captain, crew Location of use Navigation territory Propane on board Heaters Storage, winterization Liability
  40. 40. Types of Claims       Striking submerged objects Theft of equipment, electronics, tender Lightning, wind, water Machinery damage Emergency medical, bodily injury Fire
  41. 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. 42. Sailing Dinghy
  43. 43. Small Racing Sailboats
  44. 44. Inland Sail Boats
  45. 45. Large Sailing Yachts
  46. 46. Underwriting Risks        Fire, lightning, wind, water Navigation extensions Liability exposure Racing Crew Live-a-boards Propane, heating
  47. 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. 48. Concerns       Age of fleet Self maintenance Client expectations Repair expense vs. insured value Crew liability Navigation extensions
  49. 49. High Performance Runabout
  50. 50. Tunnel Hull
  51. 51. Offshore - V Bottom
  52. 52. Offshore - Catamaran
  53. 53. Underwriting Risks        Operator, experience, CV? Speed Storage security Trailering Navigation extensions Speed tests, racing, poker runs Liability
  54. 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. 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. 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. 57. And Finally, Most Pleasure Craft policies cover just about everything including stupidity……. Enjoy the following
  58. 58. Fire
  59. 59. Fire Sinking
  60. 60. Fire Sinking Collision
  61. 61. Fire Sinking Collision Grounding
  62. 62. Fire Sinking Collision Grounding Collapse
  63. 63. Fire Sinking Collision Grounding Collapse Falling Objects
  64. 64. Fire Sinking Collision Grounding Collapse Falling Objects Submerged Objects
  65. 65. Happy Underwriting

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