The Great Recession was expectedly rough on boat sales, whichsaw widely reported declines of 50% or more in revenues as theeconomy sunk. However, that tide is now turning—and producers whounderstand the exposures can make hay by writing coverage on newwatercraft.
Sales of recreational boats (up to 26 feet in length), whichaccount for 95% of craft on the water, were up about 10% in 2014.Sales of yachts (over 26 feet) were reportedly flat compared to2013, but brokers and underwriters report smoother waters in thelarge-craft sector than in recent years.
“In the mid-range—vessels from 60 to 90 feet—there is definitelyan uptick in sales and an increase in vessels scheduled to come offthe [assembly] line,” says John Gaffney, senior vice president andyacht practice leader within Marsh Private Client Services. “Withmega-yachts over 100 feet, we have seen delivery times beingextended, which is normally a very good indicator that yards arebusier than they had been.”
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