We’ve all heard the stories of the automotive sector suffering from runaway premiums and major underwriters pulling out of motor insurance altogether, but the good news is that the marine sector remains more robust.
While basic ‘third party’ liability insurance is not yet mandatory for leisure craft in the UK, the world is becoming more litigious, so it’s a very good policy to have. The Royal Yachting Association’s (RYA) trusted insurer Bishop Skinner, part of the Marsh Group, says third party claims are by far the most frequent type it receives.
In addition, marine mortgage companies will insist on comprehensive insurance to protect their investment before a loan can be made. Most modern marinas will also demand proof of insurance to cover themselves for the costs of their berth holder’s boats sinking, colliding with the infrastructure, or catching fire.
Marine insurance has been around since the opening of Lloyds Coffee House in the late 1680s, when a group of shipowners met and formed a fund to cover the loss of their cargo through shipwreck, fire or piracy. Nowadays, there are possibly 10 providers of marine insurance to the leisure boat owner, some of those, such as Simon Winter Marine, specialising in niche areas like classic craft and others, such as Craft Insure, offering a wide range of online services. In the mainstream, the market is dominated by GJW Direct, Haven Knox-Johnston, Pantaenius, Bishop Skinner, Admiral, and Navigators & General. These providers are themselves underwritten by larger international companies such as Zurich or Allianz Commercial.
The changing face of insurance
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