Programs

Spring Boating Season

Nicole Esguerra

According to the National Marine Manufacturers Association (NMMA) last year marked the sixth consecutive year of growth in new boat sales and recreational boating expenditures. That growth is also expected to continue through 2018 and possibly beyond, as some of that growth may be coming from boaters who lost their vessels during the 2017 cold bomb cyclone and hurricanes; Harvey and Irma. As the spring boating season rapidly approaches, you can expect an increase in new boats entering the market. Agents and brokers should be on the lookout for a variety of new opportunities.

 

4 Industry Insights

Insight #1: Recreational boats can cross into the commercial insurance world.

There can be some confusion surrounding personally-owned recreational boats that may sporadically be used for business purposes. For example, some clients will utilize their pleasure crafts for entertaining clients, leaving a potential business exposure.

Insight #2: Boat owner experience matters.

At Eagle we confirm and review an owner or captain’s motor vehicle history during the application process. This provides us with a good portrayal as to how your client will navigate the pleasure craft. A clean record will help save your client money.

Insight #3: Covering recreational marine can increase a broker’s or agent’s book of business.

When seasoned boat owners discuss insurance, it generates a lot of referral business. On top of that, brokers who are able to take care of a client’s boat will often cover the rest of their insurance needs.

Insight #4: Deductibles are swelling.

Deductibles are increasing and this is true all across North America and not just on the coasts.

 

2018 Boating Trends

  • Family boats are one-way boat manufacturers are attracting new and younger customers. Versatile family-friendly vessels offer boat buyers an all-in-one package that allows them to go cruising, fishing and do watersports.
  • Bigger and better boats are growing in popularity, as boaters are looking to spend more time out on the water, cruising, entertaining and just relaxing. Bigger boats provide more amenities to boaters looking for an upgrade.
  • Customizable options are trending, especially with seasoned boaters who are particular about the features of their watercraft. Tailor-made boats are a hot item at boat shows.
  • New technology on personal boats is definitely something to look out for. Digital dashboards on boats can connect all of the systems together in one easy-to-navigate system. This new technology may also come with some risks that insurance agents should be ready for.
  • First-time boaters are making a splash on the industry as well, typically buying smaller, simpler, easy-to-navigate vessels.

 

Preparing Your Clients for the Upcoming Boating Season

Regardless of whether your clients are new or seasoned boaters, it’s always helpful to reach out to them prior to the start of the season to share tips and get them ready to hit the water. Here are a few ways you can help your clients prepare for the upcoming boating season:

  • Send out a checklist of maintenance steps that boaters should do before their first trip of the season. Include tips like; replacing or topping off oil and fluids, having the engine checked and/or tuned up, checking the integrity of all of the belts and hoses, checking the water and bilge pumps, ensuring all electronics systems are working properly and re-familiarizing themselves with navigation and safety equipment.
  • Familiarize clients with weather preparedness tips. In the event that extreme weather is expected, agents can prepare boaters by helping them create an emergency plan for securing their vessels is possible.
  • Last but definitely not least…
  • Remind boaters to review their policies, especially if they have made upgrades to their boats or added additional watersport accessories to their collection.

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Underinsurance

Nicole Esguerra

The importance of valuing “Things that Move” (TTM) correctly

When the unexpected happens, clients rely on their insurance cover to make good their losses allowing them to effectively continue operating. Underinsurance can seem very appealing as it may result in lower premiums but in the event of a claim, underinsurance can result in serious financial loss to the policy holder. What many don’t understand is that unless their TTM have been valued correctly, they may be significantly underinsured without even knowing it. The amount the client insures is the most an insurer will pay out in the event of a claim, and with a partial loss, the client may even be found to be a ‘co-insurer’ and be on the hook for part of the loss.

Transportation involves the movement of property or people by water, road, rail, air and pipeline, and is vital to the economic development of a country. The risks are diverse and the chances of under valuation increases; aircraft, ships, and cargo are particularly susceptible.

Trade and global integration involving the exchange of goods or services, either domestically or internationally, plays a huge roll in today’s economy. The global supply chain is very complex these days, and proper valuation can often be difficult to establish.

Movable property includes assets that are constantly changing. Clients who own high-value items such as fine art, antiques, wine collections, family heirlooms and jewelry are vulnerable to being underinsured. Owners may not necessarily know the true value of such items, particularly if they are gifted or inherited, and are often unaware how the value of these items appreciates over time. Personal as well as commercial clients should be advised that external events can influence a certain items’ value. Common examples are; fine art can soar in value following the death of an artist or wine may increase in value if it wins a prestigious award or gold prices which have gone up by 25 per cent over the past five years – altering the value and level of cover needed.  All this needs to be factored into the insurance policy and should be evaluated regularly as part of the client risk management philosophy and due diligence.

The benefits of having a proper basis of valuation carried out are significant:

  • Not paying the consequences of underinsurance in the event of a claim
  • Not paying excessive premiums due to over insurance
  • More negotiating power when it comes to renewals
  • Fast-tracked claims process without disputes over the insured values
  • Minimized interruption to business operations
  • Implementation of internal processes, such as asset registers
  • Compliance for risk mitigation

Eagle Underwriting Group highly recommends their partner brokers and agents to ensure their clients report accurate replacement value as basis of valuation of their insured assets. This will avoid the potential of co-insurance penalties following a loss in the event of underinsurance. In-turn Eagle will provide your insureds with client-centric risk and insurance solutions, so that their business or livelihood can continue to grow rest assured.

We are your one stop shop, as most insurers only protect part of your client’s total exposure.

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Environmental Impairment Liability Insurance

Nicole Esguerra

What is Environmental Liability? It is a potential legal obligation to make a future expenditure due to the ongoing or future manufacture, use, release, or threatened release of a particular substance, whether such events are “sudden and accidental” or “gradual” in nature. Clients in every industry are subject to environmental risk and liability and is a growing concern for many businesses that are involved in transportation or trade.

Today there are stricter regulatory requirements which have increased the demand for a broader risk management and insurance solution in this segment. Eagle’s Environmental Impairment Liability insurance is tailored to provide your clients with a coverage that is far more superior to that of the standard CGL coverage; which they need to adequately protect their business from the continuously changing environmental landscape.

Standard Coverage’s

•      1st party clean-up

•      3rd party clean-up, bodily injury, property damage, natural resource damage

•      Emergency response

•      Gradual and sudden

•      Transportation

•      Contractors / Insured Work

•      Business Interruption

•      DIC Automobile Pollution

Who benefits from this type of Coverage?

•      Airports and Fuelers

•      Aircraft operators

•      Aerospace manufacturers

•      Marinas / Boat Yards / Ship Builders

•      Terminals / Ports

•      Rail Carriers / Rail Car Owners

•      Logistics companies including truckers and warehousemen

•      Maintenance, Repair and Overhaul

•      Service companies – aviation, marine, rail

•      Combine with other insurance coverage’s such as marine liability, aviation liability, cargo liability

Even if you haven’t recommended Environmental Impairment Liability cover to a client in the past, it makes sense to re-examine the exposures of your client on a regular basis.

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