Clients Want to Sail to Cuba? They Can Go Insured!

PRODUCT: Coverage for navigation in Cuban Territorial Waters

COMPANY: Novamar Insurance Group Inc. with National Specialty Insurance Company

BEST RATING: A (Excellent)

AVAILABILITY: Coverage is available through independent agents and brokers.

FOCUS: Novamar, which has specialized in marine and yacht insurance since 1987, now offers an endorsement to its yacht policy that covers yachts with U.S. crews navigating Cuban waters.

A yacht policy that includes Caribbean navigation limits typically excludes the waters of Cuba, Venezuela and Haiti. But Novamar’s policy covers U.S. boaters with an approved reason to travel to Cuba, provided they have applied for and obtained the proper permits. Most vessels valued at $50,000 or greater are eligible for coverage.

“People are interested in seeing Cuba before it changes,” says Jerry Norman, Southeast U.S. general manager for Novamar and a lifelong sailor. “We’re delighted to make it possible for people to fulfill this dream with less risk.”

Novamar’s product is different from other Cuba boaters’ insurance in three ways. First, if a boat insured by Novamar breaks down in Cuba and requires additional time for repairs, Novamar can extend coverage as long as the boat owner follows the endorsement requirements and secures the necessary permits from the U.S. Coast Guard.

Second, Novamar’s Cuba insurance program is placed with an A-rated U.S. insurance company, which means policyholders enjoy state insurance department protections regarding company financial security and claims handling. This provides greater confidence for U.S. citizens—and insurance agents—versus insuring with an overseas insurance carrier.

Third, Novamar’s yacht policy—which insureds must purchase to gain access to the Cuba endorsement—covers consequential damage to the vessel, which most policies do not cover. For example, most policies exclude rust and corrosion and will not cover the loss if a sailboat’s mast falls down because the rigging is corroded, but Novamar’s policy does.

UNDERWRITING: Insureds must obtain all permits for the vessel and crew. Endorsements will display the number of days coverage is in effect corresponding with U.S. Coast Guard-approved permits. Novamar excludes anything less than 27 feet and covers up to $2 million in hull value. Higher coverage limits are available in other Novamar programs.

MINIMUM PREMIUM: $500.

TARGET: Boats more than 35 feet in length and less than 20 years of age. Novamar will consider smaller vessels based on vessel quality and owner experience.

COVERAGE TERRITORY: Cuban territorial waters.

CONTACT: Jerry Norman, Southeast U.S. general manager; Novamar Insurance Group Inc., 1235 2^nd Street, Sarasota, FL 34236; 800-823-2798.

Ronimarie Acord is an IA contributor.