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Ownership & Usage

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Part 1: Ownership

– Markel Boat: up to 3 owners allowed

– High Performance: up to 2 owners allowed

– Helmsman Yacht: up to 3 owners allowed. Greater than 3 must be classified as multi-owner/fractional.

– Husband and wife is considered 1 owner, not 2

Markel Confidential3

Personal Owners

Corporate/Trust/LLC

– For all corporately titled risks we require a designee.

– In Yacht and High Performance, the designee’s information will be used to obtain an insurance score.

– Markel Boat: we do not insurance score corporately titled risks

– In all programs corporately titled risks are allowed to use the boat for both personal use and client entertainment


Absentee Owners

– What is considered absentee?

– Additional information required: – How often do they visit the boat? – Is there a caretaker? – Kept ashore or in rack storage?– Hull coverage or just liability only?– Catastrophe plan in place (where required)?– Theft prevention measures?

– If eligible, higher deductibles and debits will likely be merited

– All absentee risks require referral


Ownership

Vessels for Sale

– We typically do not write boats that are held for sale, unless P&I only

– Coverage for may be extended to foreign owners who are buying to ship overseas


Ownership

Repossessed Boats

– The number of boat and yacht repossessions have declined, but still do occur.

– We can insure bank owned collateral

– We will want to know:– How the boat will be cared for?– If it is in the water, the captain’s name and resume.

– The minimum earned premium will be increased


Part 2: Usage

Pleasure

– The most common usage type

– Corporately titled boats fall into this category

– Corporately titled boats can be used for both personal use as well as client entertainment


Small Boat -- Professional Angler

– Endorsement is available for owners that use their boat as a professional angler

or guide.

– The endorsement may only be attached if the boat type is either a Bass or Walleye fishing style boat.

– Coverage is provided while the owner is acting in the scope of a professional angler.

– An additional premium charge will be added when the optional endorsement is selected.

– Available in all states except CA, KS, NE and WA.


Yacht -- Bareboat

Definition: A yacht chartered for a specific duration without a captain or crew being provided by the owner.

The owner of the boat typically contracts with a management company to promote and/or administer the charter.


Yacht -- Bareboat (cont’d.)

Guidelines:

– 2 years loss free experience in bareboat operation

– Mono-hulled sailboat or trawler, diesel powered and <10 years of age

– A copy of the bareboat charter contract

and checkout procedures needs to be

obtained and reviewed for acceptability

– If the boat is managed by a fleet, the

agreement between the owner and the

fleet manager needs to be reviewed as

well


Yacht -- Bareboat (cont’d.)

Coverage:

– Minimum 2% deductible required– Minimum premium charged -- $250– Coverage premium is fully earned– No primary fishing coverage available– Evaluate appropriateness of Personal Effects limit– Attach the Bareboat Endorsement

Under the bareboat agreement, the insurance benefit passes through to the charterer.

Typically the charterer is only responsible for the deductible in the event of a loss.


Yacht -- Captain Charter

Definition: For owners that utilize their boat in a limited captained charter capacity.

The owner or his hired captain is paid to take out a maximum of 6 passengers for a designated time.

Commonplace for owners who wish to help offset the costs of owning a boat.


Yacht -- Captain Charter (cont’d.)

Guidelines:

–Captain must have a minimum of 2 years loss free experience on a similar size and type boat

–Well built and maintained fiberglass powerboat, twin diesel powered and <15 years of age or twin engine center console with speed <= 45mph.

–Maximum of 6 passengers

–Maximum of 21 days charter

–Submit a copy of the Captain’s license

and resume


Yacht -- Captain Charter (cont’d.)

Coverage:

– Attach charter endorsement

– Refer to the Yacht product manual for pricing

– Charter premium is fully earned


Yacht -- Multi-Owner/Fractional

Definition: A boat with more than 3 parties that have ownership interest or have purchase a time period to use the boat (referred to as members).

The named insured will often be a corporation which manages the usage and maintenance.


Yacht -- Multi-Owner/Fractional (cont’d.)

Guidelines:

– The number of owners or members must be entered into the MAGIC system.

– MAGIC rates based upon the number of owners entered.

– The managing entity and member’s experience must be evaluated.

– Insurance score is not used in rating


NOTE: All Bareboat, Charter and multi-owner/fractional risks need to be submitted to MAIC for review.

If the risk does not fit the criteria of the Yacht program, please consider placing the risk in the Commercial Program if your agency is contracted to write commercial with us.

Yacht -- Liveaboard

Definition: A boat that is used as a primary residence.

Liveaboard status is not required for an owner with a primary house that occasionally lives aboard.


Yacht -- Liveaboard (cont’d.)

Guidelines:

– Ineligible: – floating homes without engines– houses on barges– floating homes

– Lay-up credit should not be given

Note: A higher premium is merited as Liveaboard boats create higher risk due to additional guest passenger activity. For older boats, appliances will be used heavily in a way that was not intended for the electrical systems when the boat was built.


Yacht -- Liveaboard (cont’d.)

Coverage:

– Optional Liveaboard Endorsement available

– Provides coverage for Bodily Injury, Property Damage, Personal Injury, Personal Effects and Medical Payments while off the insured yacht

– If the boat is uninhabitable, we will pay for additional living expenses

– Coverage for Personal Liability is equal to the selected P&I limit with a maximum of $1,000,000

– Endorsement is only available if hull coverage is purchased

– See endorsement MHY5080-1209 on www.markelmarine.com


Yacht & High Performance – Racing / Poker Runs

– The General Exclusions section of the policy excludes race, speed, and stunting contests.

– For boats in Markel High Performance, Poker Runs are not considered a race.

– If a poker run is outside the navigational limits, we can consider a trip endorsement.

– The race exclusion doesn’t apply to sailboats.


High Performance – Transit & Storage

Definition: Provides coverage for a boat while in storage or during transportation.

It is also used for boats that are in the process of being refurbished or used for racing.


High Performance – Transit & Storage (cont’d.)

Guidelines:

–The insured watercraft may not be launched or lifted from the trailer with the intent of being placed in the water

–The boat must be within the radius of transportation provided within the endorsement


High Performance – Transit & Storage (cont’d.)

Coverage:

– No lay-up provided

– Minimum 3% deductible

– Maximum $1,000,000 liability

– Minimum premium $1,000

– Underwriter will apply appropriate premium credit


Commercial – Rental

– Eligible risks include:

– boat rental operations onsite, – offsite trailered by owner of

the rental operation and

– offsite at a cabin.

– Typical boat classes range from manual and fishing boats, to houseboats and personal watercraft.


Commercial -- Rental (cont’d.)

– The rental agreements must contain hold harmless and indemnification clauses.

– We require that operator training is provided with review of check out procedures including renter sign off of accepted instruction.

– The hull coverage is written on an actual cash value basis and has a minimum $1,000 deductible.

– Coverage is provided for the rental operation only, and does not pass through to the renter.


Commercial – Non-Passenger

Utility/Artisans/Commercial Fish:

– Targeted risks are small family run commercial fishing operations, shrimpers, swamp cutters, real estate tours, ecological operations and more.

– Also included in this category are contractors and artisans who need watercraft to accomplish their work.

– Crew coverage for this product is not offered.


Commercial -- Passenger

Charter & Bareboat:

– Eligible risks in this program are:– 6-pack charter boats, – sightseeing excursion vessels carrying up to 50 passengers (exception could be granted for more passengers), – fish guides and professional anglers, – oilfield contractors and – airboat charters.

– Also included in this category are bareboat charters and boat clubs.


Commercial -- Passenger

Charter & Bareboat:

– Hull coverage is available up to $500,000 (higher hull limits by exception are available) and can be either ACV or agreed value.

– Crew coverage is available for 6-pack charters only; up to a maximum of 3 crew members at $50,000/$100,000 limits.


Questions?

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