➛ ➛ From our list of Stuff we have and use [and do...] in the right sidebar ➛ ➛
Preface: I am not in the insurance business; I'm just a consumer... Therefore I have had several marine insurance brokers [in the USA] contribute to, and vet this page because I am dependent upon those professionals for the integrity and accuracy of what is stated here...
Of course, our preferences outlined below are of our own choosing...
_________________
For our marine insurance needs, we prefer working with an insurance broker.
Why? Because brokers represent us; insurance agents represent their company...
The late Al Golden of IMIS created a great reputation [and was an ex-cruiser...] Al earned our business for many years, and IMIS was always competitive... IMIS puts together a policy [Al developed the Jackline Policy for cruisers] to meet our specific needs, and has an ongoing reputation for no fuss claims handling and quick payouts. [Though, thankfully, we have no first-hand experience in this regard...]
Update May 2022: Now that we have decided to continue cruising the NNE Pacific waters [e.g., Gulf of Alaska, Bering Sea, etc.] for the foreseeable future, we solicited competing offers from brokers using underwriters more familiar with this region of the world. We worked with Amy Hemenway at a local [Alaskan] insurance broker P-W Insurance. This broker covers many commercial fishing vessels in Alaska, and Amy found us excellent [and very competitive] cover which meets our requirements.
Five Key considerations [for us] when evaluating marine insurance coverage include: [Aside from company rating and payout history, geographic and seasonal limitations, etc.]
1- All Risk [vs. Named Peril] coverage.
We specify All Risk because it covers everything not on the excluded list. Named Peril tells you specifically what is covered, but not necessarily what isn't. We prefer to not have to read between the lines...
2- Total Loss [of the vessel.] Here we specify an Agreed Value [negotiated replacement price] vs. Actual Cash Value policy [which is the insurance company's adjuster's estimate of what it is worth after the loss- as is typical with automobiles...]
There are no surprises with an Agreed Value policy; you know what you will be paid when the policy is written, and are not at the mercy of an adjuster's estimate at the time of loss.
3- Partial Loss [e.g., stolen items, lightning destroyed electronics, etc.] We prefer Replacement Cost [new for old] vs. Actual Cash Value [depreciated value of item(s) to be replaced... often pennies on the dollar...]
Important things to know about the Marine Insurance industry: [In the USA anyway...]
Additional Resources:
Five Key considerations [for us] when evaluating marine insurance coverage include: [Aside from company rating and payout history, geographic and seasonal limitations, etc.]
1- All Risk [vs. Named Peril] coverage.
We specify All Risk because it covers everything not on the excluded list. Named Peril tells you specifically what is covered, but not necessarily what isn't. We prefer to not have to read between the lines...
2- Total Loss [of the vessel.] Here we specify an Agreed Value [negotiated replacement price] vs. Actual Cash Value policy [which is the insurance company's adjuster's estimate of what it is worth after the loss- as is typical with automobiles...]
There are no surprises with an Agreed Value policy; you know what you will be paid when the policy is written, and are not at the mercy of an adjuster's estimate at the time of loss.
3- Partial Loss [e.g., stolen items, lightning destroyed electronics, etc.] We prefer Replacement Cost [new for old] vs. Actual Cash Value [depreciated value of item(s) to be replaced... often pennies on the dollar...]
4- Consequential Loss is coverage for hull loss caused by fire, explosion, sinking, collision or
stranding even if the initial cause of loss is not covered due to a policy exclusion like wear & tear, corrosion, rotting, etc.
5- Liability Coverage has several categories, some of which a better policy will provide as independent coverages of $1mm+ each (our preference.)
Often we hear of liability insurance referred to as an 'umbrella.' I like to think of them as parachutes; you may never need one, but if you do... (And then there is the addage you don't need a parachute to skydive- unless you want to do so more than once...)
Liability categories often include:
- 3rd party property and medical coverage
- Incidental fuel/ oil spill (US boat owners are liable for up to $939,800 in federal damages. Better policies offer this as separate liability coverage.)
- Salvage and wreck removal
- Uninsured/ underinsured Boater Coverage (Another case for a independent coverage.)
- Etc. (I suspect some underwriters would create as many additional genres as you are willing to pay for...)
What about Towing coverage?
We have always been advised- if we plan to transit areas where we might need the services of commercial towing companies- [there are none in our waters...] we should purchase separate towing coverage [e.g., Towboat US, Sea Tow, etc.] to avoid small insurance claims that may cause future premiums to increase... [Some policies include separate towing coverage issued by a towing company.]
When comparing policies, be sure to only compare the ones that have matching criteria as outlined above, otherwise you aren't comparing similar products.
For instance, often we hear of boat owners comparing quotes offering vastly different coverages. Some common mistakes include comparing these apples to oranges:
- All Risk vs. Named Peril policies (a common mistake)
- Agreed Value vs. Actual Cash Value
- Vastly different Consequential Loss coverages
- Likewise comparing a policy with one liability parachute to a policy with 3 independent liability categories- each with their own coverage limits
- e.g., The difference between $1mm vs. $3mm in liability coverage
- Etc.
Important things to know about the Marine Insurance industry: [In the USA anyway...]
- Marine Insurance is NOT regulated by State or Federal Government [but some coverage limits may be- like fuel spill liability in the US as mentioned above...]
- The product that you buy has not been approved by anyone [besides the insurer]
- The price that you pay has not been approved by anyone [no oversight]
- You need to either understand what you’re buying, or commission an agent [in the brokerage] in whom you can place your trust
Additional Resources:
- Chubb overview of yacht insurance
- How to get the best Insurance Quote [An informative and detailed article (which is now archived) by a fellow cruising sailor...]
- What Marine Insurance Companies Don’t Want You To Know [More good info from fellow cruisers...]
- Basics about Marine Insurance, and Company Comparisons [Even more good info from fellow cruisers...]
- Practical Sailor Article about Consequential Damage Coverage
- Seeking a new Insurance provider; SV Harmonie [early 2020]
- Insurance Term Knowledge Base [By Offshore Risk Management]
- Seven important things to know about the fine print on your boat’s insurance policy [BoatUS article]
- Forum Discussions:
- Cruiser's Forum:
Thanks for the reminder that you had this post, Donna. I will contact Al Golden and get him to give us a quote.
ReplyDeleteYou're welcome. We met Al one time when we were in Maryland, it was fun to meet face to face.
DeleteGreat information. Thanks very much. We have been talking to Cindi at IMIS.
ReplyDeleteThank you, John. We wish you the best finding the coverage you are looking for. The IMIS 'Jackline' policy does it for us...
Delete