PRODUCT: Recreational yacht program

COMPANY: Burns & Wilcox

BEST RATING: A (Excellent) or better

AVAILABILITY: Coverage is available through appointed agents.

FOCUS: In 1790 B.C., the ancient civilization of Babylon established numerous trade routes that stretched from the Mediterranean to the Persian Gulf. These routes involved frequent shipping risks in the transportation of goods, including bandits and pirates, as well as rough waters and inclement weather.

To manage these risks, Hammurabi, the first Babylonian king, developed the system of bottomry—a maritime contract in which the owner of a ship borrowed money for its use, equipment or repair, and the ship was pledged as collateral. Bottomry acted as an early form of insurance, easing the minds of merchants and guaranteeing lenders a profit as long as shipments arrived safely.

Fast forward to 2017, when individuals are still trying to protect themselves from the perils of the sea. Although not much has changed—not even the risk of piracy—ships and insurable values are much more sophisticated nowadays.

“That’s where our recreational yacht coverage comes in,” explains Bill Gatewood, corporate vice president and director, personal insurance, Burns & Wilcox. “Most homeowners policies or corporate accounts have limitations when it comes to the inclusion of personal use and corporately titled vessels.”

Burns & Wilcox’s recreational yacht program offers an assortment of coverages, from personal watercraft up to mega and super yacht classes. “It takes a high level of expertise to effectively handle marine insurance,” Gatewood says. “With so many different types of boats and regional differences, that’s where our specialty comes in. We place routine risk, as well as frequently handling complicated marine risks.”

Gatewood adds, “There has been an uptick in boat purchases and an increase in the values of existing boats. Boat lovers will sacrifice other things before they part with their boats.”

UNDERWRITING: Key features include coverage for boat lifts and boat houses; pollution coverage; trip endorsements with increased navigational limits not found on an insured’s annual policy; Cuban water navigational limits; high-performance boat coverage; a tournament fee reimbursement; occasional commercial fishing or charter coverage; wreck removal coverage; and tender/trailer coverage.

Policies, which can be admitted or non-admitted, are written on standard one-year terms. Burns & Wilcox can offer both consumer direct and agency bill options. Based on location, Burns & Wilcox can include lay-up options. Insureds who winter in southern states may be eligible for enhanced pricing when storing vessels during the summer months.

Outside hull cover options, liability capabilities can extend to $500 million on a standalone basis. This is sometimes considered a mandatory level on mega and super yachts, due to the values associated with the boats moored nearby.

MINIMUM PREMIUM: None.

TARGET: Personal and charter vessels, personal watercraft, airboats, houseboats and mega yachts.

COVERAGE TERRITORY: All 50 U.S. states.

CONTACT: Burns & Wilcox Marine Center of Excellence; Burns & Wilcox, 220 Kaufman Financial, 30833 Northwestern Highway, Farmington Hills, MI 48334; 855-700-BOAT (2628).

Ronimarie Acord is an IA contributor.