Novamar Creates Long-Term Program for Yachts

PRODUCT: Novamar Yacht Insurance Program

COMPANY: Novamar Insurance Group, underwritten by admitted domestic insurer, National Specialty Insurance Company

BEST RATING: A (Excellent)

AVAILABILITY: Coverage is available through independent agents and brokers.

FOCUS: Novamar’s president and underwriting staff members are boaters who recognized the need for a yacht insurance program that simplifies the underwriting process, improves claims service, reduces response times and provides flexible, stable coverage at a competitive price.

“The big insurance companies come in and out of the market and their appetite changes with the wind, so to speak,” says founder Craig Chamberlain. “Many underwriters change at different rates and different times for different reasons. We’ve created something more predictable.”

As a managing general agent and retail brokerage firm, Novamar employs underwriters who ask yacht owners for their three-year plan: Will they cruise the yacht in local U.S. waters, or do they require more extended navigation limits?

“We match the yacht owner’s plan with a tailored program,” Chamberlain says. “We work hard to avoid having to rewrite coverage, which might require a new survey. That’s expensive and inconvenient. By having broad underwriting authority, we offer more stable products in terms of pricing and coverage.”

The company has found that clients want a same-day response, so it uses technology to deliver processes more quickly. “We’ve incorporated technology from the very beginning, really streamlining the whole process and our response time,” Chamberlain says. “Our Web portal creates a logical workflow in the quote, bind, issue and endorse cycle. Technology leaves our staff with more time to help clients and partner agents and brokers.”

Novamar, which has specialized in marine, and primarily yacht, insurance since the mid-1980s, understands that it takes a lot of boat and insurance expertise to create a good program. “Yachts are so varied in type, value, quality and how they’re used,” Chamberlain explains, adding that not only do boat manufacturers number in the hundreds, but the industry is capricious. “It’s a more dynamic industry than, say, cars with just 20 or so manufacturers.”

UNDERWRITING: Novamar offers broad underwriting guidelines: $2 million in hull and $5 million liability limits, with higher limits available. The company requires the following basic information: owner’s date of birth, occupation and boating experience, along with boat description, age, length, manufacturer and engine manufacturer. Novamar also requires information about where the owner will use the boat due to areas prone to hurricanes or piracy or those that lack repair facilities. Owners must provide information on required limits for hull, personal property, yacht tender, liability, crew and the medical coverage limit they seek.

MINIMUM PREMIUM: $500

TARGET: Yachts $50,000 and above in value

COVERAGE TERRITORY: U.S., Mexico, Central America, Caribbean, Mediterranean and South Pacific

CONTACT: Craig Chamberlain, president; Novamar Insurance Group, Inc., 1115 N. Northlake Way, #200, Seattle, WA 98103; 800-823-2798.

Ronimarie Acord is an IA contributor.