Cover Boaters for Propulsion Wear and Tear

PRODUCT: Sign & Glide® and Propulsion Plus® programs for boats

COMPANY: Progressive Insurance

BEST RATING: A+ (superior)

AVAILABILITY: Coverage is available through independent agents and brokers.

FOCUS: In the past, a boater with a disabled vessel had to personally radio a tow operator and pay out of pocket. If they made it home, they had to file for reimbursement. Now, Progressive offers Sign & Glide, which provides an 800 number for a Progressive dispatcher who locates, sends and, in most cases, pays a tow operator directly so the customer incurs no out-of-pocket expense.

“We took the roadside business model and applied it to the water,” says Rick Stern, boat product manager at Progressive. “This is an industry first.”

The Sign & Glide policy pays not only for towing, but also for jump starts, fuel delivery and soft un-groundings if a watercraft becomes disabled while on the water. Progressive also offers new Propulsion Plus coverage, which provides for repair or replacement of the lower unit of an outboard motor, or the upper and lower units of a stern-drive motor, in case of mechanical breakdown. “For the first time, boaters can have mechanical breakdown coverage for the upper and lower units of the propulsion system, even for wear and tear,” Stern says.

Progressive insures more than 1 million watercrafts. Insurance options range from personal effects replacement to fuel spill coverage. Boaters can also add Sign & Glide and Propulsion Plus. “Our boat coverages are a la carte, so customers and their agents can build a policy in which they don’t get things they don’t want,” Stern explains.

UNDERWRITING: Sign & Glide is available for any boat Progressive insures, either with general liability or physical damage. As long as the boat is not more than 10 years old, with either an outboard or an inboard/outboard motor, it is eligible for Propulsion Plus coverage. Once the boat owner has the policy, they can keep it until the boat turns 21 years old.

MINIMUM PREMIUM: Sign & Glide: $30 a year in every U.S. state except Florida, where minimum premium is $50. Propulsion Plus: depends on the motor. For example, minimum premium starts at $38 a year if the policyholder has a 150-horsepower outboard motor on a new boat.

TARGET: Small boats, 26 feet or shorter. This market is broad: 95% of boats registered in the U.S. are less than 26 feet in length.

COVERAGE TERRITORY: Both Sign & Glide and Propulsion Plus are available in the following 34 states: AL, AZ, CO, FL, GA, ID, IA, IL, IN, KS, LA, ME, MI, MN, MO, MT, ND, NE, NM, NY, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, VT, WA, WI and WY. Standalone Propulsion Plus is available in AR, KY, MD, MS, NC, NJ, NV and WV. By year-end, Progressive expects both products to be available in all states.

CONTACT: Rick Stern, boat product manager; Progressive Insurance, 300 North Commons Boulevard, Mayfield Village, OH 44143; 440-395-7451.

Ronimarie Acord is an IA contributor.