Marina Dock Age, April 2006

Stick with insurance companies that know and support
the marina industry
By Mark Yearn

Selecting an insurance program is a lot like building a house in that they both require a solid foundation before building a strong structure.

The foundation of a marina’s insurance program is the insurance broker. Marinas must select an insurance broker who understands the marina business, is committed to the marina industry and has the dedication to the marina to stay abreast of the specific developments that affect one’s business. Once a marina finds that broker, stay with him or her. Give that person trust, confidence, and commitment, and the marina is likely to be rewarded in more ways than the marina owner or operator can imagine.

Three-year rule

Having selected a reputable and trusted insurance broker, marina owners and operators should not go through the quote and bid process every year for a couple of reasons.

First, there are a limited number of insurance markets available to properly write an insurance program and if marinas quote and bid every year, more than likely, these quality markets have seen the insurance plan more than once. Many times an underwriter will be asked to work on account, only to be told that they have seen it every year for the past three years and are not interested in quoting on it any more.

Second, brokers who know that a marina owner is going to shop frequently are less likely to give him or her the benefit of their full commitment. That’s perfectly understandable. It works the same way at marinas. Marinas typically provide better service to its long-term customers than it does to the short-term price shoppers. Likewise, professional brokers tend to do more, provide more services, and have a greater commitment to their customers who they have a long-term relationship with, as opposed to those customers who “price shop.”

Marinas should shop for insurance or put it out to bid every three years. Be committed to the insurance broker and the underwriters for a three-year period — unless, of course, the owner/operator feels the marina is being used. At the end of the three-year period, discuss the market with the broker and determine if there’s a need to bring another broker into the situation. A broker who is well-positioned in the market can bring all the proper insurance companies to the table and can conduct a quote and bid process with all of them that will benefit the marina.   Continue »