The right coverage is the difference between rough seas and smooth sailing

Premier Pleasure Crafts

When the Warmer Weather bloWs in, many four million recreational boats in Canada, with about 4,000 of your affluent clients start making seasonal lifestyle companies providing goods and services to boat owners.adjustments, such as regular visits to cottages and excursions From sailboats to cabin cruisers to antique wooden boats, on their watercrafts. enthusiasts can choose from an array of high-performance,

Whether their pleasure crafts are powered by engines ultra-luxe pleasure crafts made by a range of manufacturers or propelled by wind, an increasing number of wealthy both in Canada and the U.S. The average price of a multi-Canadians are discovering the joy of boat ownership— person power craft is around $36,000. For those with no leading Canada’s recreational boating industry to experience shortage of funds, however, the price tags of some of these exponential growth. toys could easily be north of $100,000. And, as these

According to the latest statistics from the National Marine boaters can attest, the purchase price tag is just the first of Manufacturers Association (NMMA), there are more than many costs associated with owning such a valuable asset.

stay afloat with comprehensive coverage From title and registration to fuel and dockage fees, and from safety equipment to winter storage, a pleasure craft is not a buy-it-and-forget-it investment.

Comprehensive insurance coverage, therefore, becomes a meaningful expense necessary for keeping these crafts safe, seaworthy and secured against unexpected incidents. Whereas a basic homeowner’s policy could fall far short of what is adequate, boat insurance is like having a life jacket: you’re always glad you have it, especially when you need it.

Therein lies a business-building opportunity for brokers to steer the conversation from a standard homeowner’s policy to specialized coverage—a safeguard for precious assets. With the right leisure and lifestyle insurance solution, brokers can ensure their high-spending clients have a comprehensive risk manage-ment tool that lets them enjoy their lifestyle uninterrupted.

According to the World Wealth Report 2013 coproduced by Capgemini and RBC Wealth Management, the population of Canada’s high net worth individuals was pushing 300,000

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$2 billion total retail sales of new boats in Canada

$935 million total sales of used boats in Canada

4.3 million boats owned by Canadians

15 million Canadians went boating last year

45% Canadians participate in boating

source: 2012 Canadian statistical data from the national marine

manufacturers association (nmma).

in numbers

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in 2012. The Guarantee also researched this affluent group and its need to protect high-value assets. The company’s GUARANTEE GOLD® insurance products provide coverage for homes, cottages and other secondary residences, contents, personal liability, automobiles and recreational equipment.

Offered through the program is PleasureCraft, which provides exclusive coverage designed to let boat enthusiasts enjoy the thrill of owning a watercraft without worrying aboutthe attendant risks. The specialized program covers both owned and borrowed watercrafts, and provides some of the widest navigational zones in the industry, wading boldly into areas of protection where standard policies wouldn’t venture.

Moreover, coverage extends to both man and the machine. This means not only are the boat and its contents covered, but also all of the occupants who may sustain physical injury in the event of an accident are protected. The policy provides coverage of up to $30,000 for on-board personal effects for owners, guests and crew.

Give trouble a wide berth In the event of a mechanical breakdown, policies that address unexpected delays can make a real difference. A PleasureCraft

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policy covers any breakdown resulting from fire, sinking, collision and stranding, among other causes.

Furthermore, if the watercraft or trailer becomes disabled, coverage takes care of the cost of towing to the nearest marina, delivery of fuel or repairs done at the site of breakdown—a value that can help differentiate you from other brokers when serving high net worth clients.

Should repair work trigger unexpected costs, the program provides up to $1,500 of additional living expenses during the repair or replacement process. As well, the issuer will reimburse a rental cost of up to $1,500 per occurrence, and it will even take care of the deductible.

Your clients may also appreciate the “green coverage” component of the policy, which offers to pay up to $10,000 for damages the vessel owner may be legally obligated to pay for any marine environmental damage.

By encouraging policyholders to take risk mitigation steps, the program fills some safety gaps that other policies may not plug. To that effect, the program will reward or reimburse the steps a client takes to reduce the severity of a claim or avoid it altogether.

Keep liabilities at bay Another benefit for clients is they are protected from those who haven’t protected themselves. Brokers can highlight the peace-of-mind proposition of the PleasureCraft policy that offers up to $1,000,000 in damages for bodily injury sustained from a boating accident with an uninsured or underinsured boater.

Even the most affluent boaters are not immune to crime. According to the Stolen Boats Canada website, rarely a month goes by that a boat theft incident isn’t reported. To help watercraft owners tide over such a contingency, the guaranteed replacement cost feature of the policy provides clients with another layer of security. It covers both new and antique water-craft if they suffer a total loss, either due to damage or theft.

Brokers armed with this offering can also protect clients who love to take water vehicles out for a spin without the commitment of ownership. Clients are insured for up to $50,000 when they are exposed to legal damages arising out of their use of a watercraft not owned or leased by them.

Cast your security net wide Aside from the costs of repairs and replacement, there are other significant client considerations that policy features can help brokers address. These features include wreck removal, which covers up to 100% of the cost of wreckage removal if legally required to do so, and search and rescue, which pays the policy-holder up to $10,000 for search and rescue operation expenses.

And although many of your clients may be forced to dry dock their boats during peak winter months, clients can be reassured that they can enjoy boating pleasure year-round. The policy doesn’t require a lay-up period, the period of time during which the vessel is not in use.

Pleasure crafts are a big-ticket purchase with a unique set of risks and the benefits of a lifestyle worth investing in. Brokers can offer their clients a reliable assurance of smooth sailing with specialized insurance coverage.

• lock and secure it to the dock with a steel cable• remove expensive equipment when not in use• Chain and lock detachable motors to the boat• Do not leave title or registration papers in the craft• Disable the boat by shutting fuel lines or removing batteries• use a trailer hitch lock after parking a boat on its trailer• install a kill switch in the ignition systemsource: u.s.-based national insurance Crime Bureau.

Tips to proteCt your Boat from theft