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Old 05-16-2005, 08:50 PM
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Default Insurance Question

Does anyone have any information on what it would take to form a insurance company that writes only powerboat. What kind of total dollars envolved. 3Mill 4 Mill ???. I read were one claim took down Blackdar. They paid out 2,000,000. Just doing a little research.
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Old 05-16-2005, 09:46 PM
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Default Re: Insurance Question

you would need alot more capitol then 3 or 4 Mil to get something like that going. I would think atleast 50 million to get rolling. Until you build up a pretty large client base you are at a huge risk. The safety comes in numbers in that buissnes. I don't know if a company that only insured high performance boats could survive long enough to make it work. The initial risks are huge. You want your risk spread out over thousands of policies if not more, to make it work I think you would need to write policies for just about every performance boat out there. The reason Sate farm and other companys don't want to get into it, is that they don't think they can write enough policies to spread the risk out enough to make it a safe investment. Just my 2 cents.
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Old 05-16-2005, 09:52 PM
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Default Re: Insurance Question

50 M? we should be able to round that up around here pretty quick.... everybody throw in 1M or so and we will be rolling..... i never understood how blackdar got taken down by one claim...
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Old 05-16-2005, 10:02 PM
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Default Re: Insurance Question

Even large insurance companies "reinsure" some of the risk and there is no market for that, so you would be the new guy on the block trying to reinsure with Markel and Ace and it would be very hard to compete without an existing client base of low risk customers in todays market.
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Old 05-16-2005, 10:26 PM
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Default Re: Insurance Question

Quote:
Originally Posted by hillbilly24
you would need alot more capitol then 3 or 4 Mil to get something like that going. I would think atleast 50 million to get rolling. Until you build up a pretty large client base you are at a huge risk. The safety comes in numbers in that buissnes. I don't know if a company that only insured high performance boats could survive long enough to make it work. The initial risks are huge. You want your risk spread out over thousands of policies if not more, to make it work I think you would need to write policies for just about every performance boat out there. The reason Sate farm and other companys don't want to get into it, is that they don't think they can write enough policies to spread the risk out enough to make it a safe investment. Just my 2 cents.

I'm confused. State Farm is "into it". They insure all kinds of high performance boats that I know of.

Buck
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Old 05-16-2005, 10:30 PM
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Default Re: Insurance Question

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Originally Posted by buck183
I'm confused. State Farm is "into it". They insure all kinds of high performance boats that I know of.

Buck

those owners better read closely, i have been told and have heard from others that they don't insure HP boats...i have state farm for all my stuff but my boat and my agent told me to look elsewhere when he couldn't get my boats underwritten.... 70 and over scare them.. plus if they do, it is not an agreed value policy, which means you will get screwed if something happens...
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Old 05-16-2005, 10:50 PM
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Default Re: Insurance Question

We need some competion!! If Ace and Markel won't write you, who will? We all cant be that much of a risk...3k for one year is well above what one should have to pay for a 120k boat. One of my quotes were 6700 with a 13,500 storm damage waiver not to be waived if boats a total loss.
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Old 05-16-2005, 10:52 PM
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Default Re: Insurance Question

Quote:
Originally Posted by buck183
I'm confused. State Farm is "into it". They insure all kinds of high performance boats that I know of.

Buck
Not realy, you or your agent has to tell ome outright lies to get them to cover it, and when something does go wrong they aint gonna cover anything.
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Old 05-16-2005, 10:54 PM
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Default Re: Insurance Question

They are bending me over for the finish. My experience and driving record perfect. No tickets in 20 years,48 years old, and I cant insure my boat. For 2 years Blackadar carried me, now Im done and stuck with a 120k boat.
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Old 05-16-2005, 11:08 PM
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Default Re: Insurance Question

Hell it makes you want to charge people that ride in your boat $1,000 dollars an hour to ride with you. I would think the high prices on cat insurance would hurt the older cat market. Example 32 Skater. I could not find anyone that would write a 89 32 Skater with Tripple 2.5's when i was shopping.
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