This document summarizes the various risks involved in underwriting pleasure craft insurance. It outlines the common types of boats, associated risks, claims that arise, and concerns for underwriters. Key risks include operator experience, usage patterns like location and activities, security of mooring or storage, theft exposure, and liability risks. Common claims relate to physical damage from collisions, sinking, or theft, as well as liability claims. Underwriters must consider factors like depreciation, repair costs, liability limits, and assessing risk for different boat types, users, and usage scenarios.

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
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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
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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
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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
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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
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Striking submerged objects – outboard
motor & propeller damage
Theft of boat, motor, electronics or
fishing equipment
Damage while towing
Hull damage

16. Concerns
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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
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Operators – Age
Mooring / storage location
Use
Theft
Liability BI & PD

21. Types of Claims
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Striking submerged objects
Theft of equipment, personal effects
Property damage?
Personal injury?

22. Concerns
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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
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Operators – Single operator, family,
friends, cottage renters…
Ingestion – Jet boats
Moored or trailered
Speed, horsepower
Age of boat

29. Types of Claims
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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
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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
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Operators, experience
Loaning or borrowing
Location – Use & storage
Ingestion
Liability – Especially bodily injury
Speed, horsepower

34. Types of Claims
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Theft
Impeller – Engine damage
Liability – Bodily injury
Property damage
Hull – Physical damage

35. Concerns
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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
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Operators, captain, crew
Location of use
Navigation territory
Propane on board
Heaters
Storage, winterization
Liability

40. Types of Claims
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Striking submerged objects
Theft of equipment, electronics, tender
Lightning, wind, water
Machinery damage
Emergency medical, bodily injury
Fire

41. Concerns
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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
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Fire, lightning, wind, water
Navigation extensions
Liability exposure
Racing
Crew
Live-a-boards
Propane, heating

47. Types of Claims
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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
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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
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Operator, experience, CV?
Speed
Storage security
Trailering
Navigation extensions
Speed tests, racing, poker runs
Liability

54. Types of Claims
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Striking submerged objects
Damage to stern drives, propellers
Theft of stern drives, entire boat, trailer
Paint damage - $$$$
Vandalism
Bodily injury

55. Claim Concerns
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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
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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

61. Fire

62. Fire
Sinking

63. Fire
Sinking
Collision

64. Fire
Sinking
Collision
Grounding

65. Fire
Sinking
Collision
Grounding
Collapse

66. Fire
Sinking
Collision
Grounding
Collapse
Falling Objects

67. Fire
Sinking
Collision
Grounding
Collapse
Falling Objects
Submerged Objects

68. Happy Underwriting