Between the condition and value of older hulls and the evolving technology of new builds, the list of potential hazards is endless. And in today’s world, boat owners tend to have less practical, hands-on experience when it comes to operating and maintaining their vessels. Combine an uncertain risk with an inexperienced operator who has an ambitious plan for using the vessel in a challenging geographic area and the risk increases exponentially.
Case Study
The owner of this renewing policy felt that he had sufficient fire extinguishers on board, even though this was what he was referring to. It’s doubtful that any of these fire extinguishers would function, if needed.
Underwriters face this type of challenge every day- they’re under pressure to make decisions without the information they need.
It’s not unusual for an underwriter to review a submission and have the feeling that something’s not right, but he or she just can’t put a finger on it. The underwriter would benefit tremendously if he or she could get a second opinion from someone who can provide the proper insight in order to make a sound decision. For example, we’ve discovered cases where a given vessel was being operated, for all intents and purposes, as a commercial vessel on a recreational marine policy. Large yachts, undergoing an extended refit, can sometimes be more accurately classified as a “builder’s risk”, and coverage amended accordingly. And this can work both ways. We’ve seen cases where a prospective piece of business might look unacceptable to the non-expert, but is, in fact, a good risk.
There are possible exceptions to most underwriting guidelines, but good business opportunities sometimes get overlooked. A brief consultation, to discuss the specifics of an unfamiliar or unusual risk, is often a worthwhile business strategy and a learning opportunity for the underwriter at the same time. Naturally, a Risk Assessment Consultation could include any or all of the specific services as listed on our “Services” page.