Just for fun, let's play the “what if” game. It's Fridayafternoon and a client calls and informs you that she needscoverage for a new 45-foot houseboat she just purchased and plansto take out for the weekend. Or it's early Monday morning and aclient tells you he purchased a 28-foot center console fishing boatat the boat show over the weekend. He is picking it up today andneeds coverage.

Obviously, these boats are too large to be covered under theirhomeowners' policies and they fall outside the appetite of yourstandard personal insurance carriers. You don't have a specialtymarine market in house for high performance boats or boats morethan 26 feet in length. How do you respond?

Too many agents are not prepared to handle these types ofrecreational watercraft exposures for their clients. They may thinkthat without direct market access or knowledge of watercraft andwatercraft policies, they are not equipped to help theircustomers.

Related: Read the article by Dan Gordon “What YourCustomers Don't Know About Boat Insurance.”

Sadly, for many agents, the “what if” game results with theircustomers sent elsewhere to find coverage. But it doesn't have toend that way. Recreational watercraft experts who have access to awide array of carriers and products can meet the needs of yourboating clientele.

With the traditional boating season just around the corner, nowis the time to partner with one of these experts to ensure you areready to provide your clients with the proper solutions to theirrecreational watercraft needs. By doing so, you are strengtheningyour agency and opening new opportunities for growth.

Partner with an Expert

Finding the right partner is your first step. Any time one ofyour customers goes outside your agency to find coverage, you runthe risk of losing the entire account. Therefore, it is criticalthat you protect your client base by finding a partner who willwork with you and not compete against you. There are two ways to dothis. The first is to find a “watercraft only” retail agency. Whileyou may not be able to retain the revenue, at least you know thisagency will not attempt to cross sell auto, home or other lines ofbusiness to your customers.

Another option is to work with a wholesale specialist who doesnot own or support another retail distribution channel. With awholesale partner, you don't have to worry about cross-selling butyou also have the ability to share in the commission revenue. Youwill find that having access to the specialty watercraftmarketplace will benefit your agency.

First, tap into the expert's knowledge andexpertise. Marine specialists know their stuff. If you are notfamiliar with boats, marine policies and nautical terminology, youcould get yourself and your clients in real trouble. Consider thefollowing:

1. A typical recreational marine policy contains a warranty clausethat states the agent and insured certify that the boat is wellmaintained and “seaworthy.” If you have little knowledge of boats,are you comfortable putting your agency's reputation on theline?
2. At some point most specialty watercraft will require a marinesurvey. This is an inspection done on the vessel similar to a homeappraisal. The surveyor comments on the overall seaworthiness ofthe boat, its operating systems and determines a market value forthe vessel. A marine survey can contain as many as 100 pages oftechnical information. Are you prepared to read through thisdocument and certify that the boat meets National Fire ProtectionAssn. and U.S. Coast Guard standards?
3. At the time of a loss, a marine specialist will be inspectingthe boat and adjusting the loss. Are you equipped to knowledgeablyadvocate on behalf of your client and ensure they are getting afair settlement?

If you cannot confidently answer yes to all these statements,then you should seek out a specialty marine partner to handle yourboat coverage placements. Qualified marine wholesale specialistscan provide all this and more. They will help you understand yourclients' exposures and advise you on the right options andsolutions. They also should provide you with the right questions toask your customers so you can professionally and efficiently getcoverage written. In short, the right partner will make you lookgood in front of your customer.

Related: Read the article “What Defines an Expert?”by Richard Mintzer.

Another benefit of partnering with a boat specialist is, throughthem, you gain access to the markets you need to properly protectyour clients. Many retail agents do not write enough boat businessto support a direct appointment with these specialty carriers. Besure that your partner has access to multiple markets with theability to handle a wide variety of boats in the geographic areasthat are important to you and your customers. If your potentialpartner cannot place high performance boats, yachts, older boats,high value vessels, sailboats, coastal mooring or navigationoutside the U.S., keep looking.

In addition to knowledge and access to the right markets, realexperts have strong relationships and credibility with theircarriers. This credibility translates into flexibility when yourclient's exposure doesn't “fit” the stated underwriting guidelines.Being able to negotiate deals is important in the marinemarketplace. This is another example of how the right partner makesyou look good to your clients.

Increase Retention and Revenue

Once you have a watercraft partner in place, you immediatelybegin impacting the bottom line of your agency. Given a choice,most consumers prefer to deal with a single agent for all theirinsurance needs. As outlined earlier, having a recreationalwatercraft partner who doesn't compete against you for other linesof business lessens the vulnerability of losing your clients toanother agency. With a “wholesale only” partner, you have the addedbenefit of generating revenue directly from this new line ofbusiness.

Industry studies show that customer retentionincreases with the number of polices you have with that customer.Increased client retention improves your agency's productivity,efficiency and revenue.

With a solid recreational watercraft solution in your office,you also gain the ability to market this product line directly toyour clients. You may find that you have a significant number ofboat owners in your agency management system. What was once aninsignificant line of business for your agency may now become alegitimate revenue stream for your organization. In this way,offering watercraft coverage to your clients strengthens the longterm profitability of your agency.

Opportunities Through Referrals

Like most enthusiasts of a particular sport or hobby, boaterstalk to one another. In fact, they are a very tight-knitfraternity. Whether out on the water or anchored in the marina,they swap stories, share experiences and develop friendships withfellow boat owners, boat dealers and marina operators. This is anetwork that your agency can tap into when you are able to writerecreational watercraft products.

Related: Find carriers for your boat insurance inour Market Directory: Ocean Marine Insurance.

Boaters spend a considerable amount of time and money on theirvessels. With a limited number of insurance options available tothem, this group appreciates insurance professionals who understandwatercraft and have the proper markets and products to protecttheir investments. Word of mouth advertising is strong in theboating community. When you begin handling watercraft coverage foryour clients, they will refer other boaters to your agency.Referrals will call asking about coverage for their boats. Oncehandled, you then have the opportunity to cross-sell other lines ofbusiness. Where you once lost agency accounts by not writingwatercraft coverage, you are now generating new business as aresult of having this line of business in your agency.

With nearly 13 million registered pleasure watercraft in theU.S., this no small market. Can your agency afford to ignore thissegment of the personal insurance market? Can you afford to run therisk of losing established clients because you cannot writespecialty watercraft products?

Let's play another round of the “what if” game. What if you hadthe ability to place recreational watercraft in your agency? Whatwould that do to your overall sales? How could it impact retention?What would it do to your agency revenue?

Full steam ahead!