MARKEL HELMSMAN YACHT BOAT USE FEATURES AND BENEFITS Presented by: Mario Chiappetti.

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MARKEL HELMSMAN YACHT BOAT USE FEATURES AND BENEFITS

Presented by: Mario Chiappetti

Good Morning/Afternoon Everyone, my name is Mario Chiappetti; I have been with Markel American Insurance for about 11 years and I am a Senior Marine Underwriter.

Welcome to the next installment of the Markel Marine informational series. In this session we will discuss the ability to customize coverage based on the Owners intended or anticipated use of their boat.

Please remember to keep your phones on mute during the presentation, and to hold your questions until the end.

So, lets get started.1CUSTOMIZEABLE COVERAGE TO SUIT YOUR CUSTOMERS NEEDS There are 1000s of Boat types and 1000s of Owners all using their Boat differently.We will explore standard and optional coverage features that an owner may find desirable. Markel Confidential2

The base policy provides many standard benefits which are outlined in the program manual. Our focus today is how to further customize the coverage based on how the owner intends to use their boat.

When you anticipate an owners needs it positions you as an expert with the knowledge and understanding of those needs.

2Numerous FeaturesMarkel Confidential3

This grid provides a few options for what an owner may be interested in based on their boat type. Of course, not all use their boats similarly, but provides a good framework to show coverage features that may be of interest. This grid is also available for your reference on the Markel Marine website. 3SAMPLE BOAT USAGE SportfishingUsed primarily for fishing near shore and deep sea, they may enter a tournament or travel distances.LiveaboardThe boat is their primary residence.CruisingAn owner that is taking an extended voyage or trip.RecreationalThis is a typical user, a weekend boater.

Markel Confidential4

Here are a few examples of how an owner may use their boat. We will take a look at each one to discuss what may be contemplated. 4SPORTFISH USEMarkel Confidential5

Center ConsoleSport Fish

The Center Console and Sportfish boats are very popular. An owner may day fish or go on extended fishing expeditions to participate in tournaments.

A typical owner would like to address fishing coverage options to enhance their policy coverage. Yes, we have a few options available.

5COVERAGE OPTIONS FOR THE FISHING ENTHUSIASTFishing EquipmentTournament Fee ReimbursementBoat Lifts Emergency Trip Expense ReimbursementExcess Catch & Part Time Charter


When you have a Sport Fishing type of risk, these are some of the options to think about adding benefit to your quote/policy.

Lets explore these options a little closer.

6FISHING EQUIPMENT COVERAGEHighlights:Primary Replacement Cost SettlementMarkel Confidential7

Hard to have a good day of fishing without your gear.

This endorsement adds coverage on a primary basis to cover equipment like: rods, reels, tackle box, etc. on a replacement cost settlement basis.

Items that are attached to the boat, like outriggers, would be covered as part of the Hull.

To add the coverage, just select the amount desired on the coverage page and rate. 7TOURNAMENT FEE REIMBURSEMENT ENDORSEMENTMarkel Confidential8Highlights:This is added coverage to provide for your non-refundable Tournament Fees, if you could not participate because;Bodily injury to you or a family memberLoss or damage to the Insured yachtMechanical breakdown of your towing vehicleWe will reimburse up to $1000 per occurrence and a $1000 maximum per policy period

Tournament Fishing occurs all over the U.S. and each tournament has fees and registrations, which can be very meaningful.

The Tournament Fee reimbursement is an added benefit for the avid fisherman on a Sport Fish or Center Console boat.

Review highlights.

The premium for this endorsement will automatically show when the optional endorsement is chosen. Currently, the premium is only $108BOAT LIFTOverview: Coverage for sudden accidental loss to the boat lift on named perils basis. ACV Settlement. Markel Confidential9

Boat lifts are very prevalent in certain areas of the country and are commonly used to store Center Consoles. Lifts add an additional level of protection from sinking and can be an effective theft prevention mechanism.

Please note, the boat lift needs to be used and designed for the insured yacht.

Other carriers may not provide boat lift coverage, so this may provide a meaningful coverage advantage.

Coverage is ACV and written on a named perils basis. We rate on the value of the boat lift - we insure up to $50k with a $500 deductible.

9EMERGENCY EXPENSE REIMBURSEMENT ENDORSEMENTHighlights:If there is loss covered under Physical damage, then this will provide lodging and transportation expense assistanceMust be more than 250 miles away and the repair period must be longer than 2 daysWe Pay 50% of expense up to $1000 per occurrence and max $2500 per policy period


Talk highlights.

This is a benefit for the fisherman that will travel a significant distance to fish their favorite spot or tournament.

This endorsement gives you the opportunity to address coverage availability for expenses that your client that would otherwise be incurred out of pocket.

Coverage is added via optional endorsement and current pricing is only $20 for the term. 10SUBSIDIZE OPERATIONAL COSTSEXCESS CATCHPossess Commercial Fishing LicenseNo Paid Captain or CrewFish Caught by Rod & Reel or Outrigger only, No Netting or TrapsMust Keep a Catch Log for Review, Include Dates, Catch info & Sell infoNo More than 60 Days of UseAdd by Policy Change Endorsement

CAPTAIN CHARTER6 Passenger MaximumLicensed Captain Required21 Days of Charter MaximumAdd by Policy Use Type and Endorsement


Some Sport Fishing owners may want to subsidize the cost of running their boats by selling the fish they caught to local markets or by taking out passengers for a Fishing Charter.

The Captain Charter is Part Time use and requires to be licensed to statute. To add the coverage you must select Charter use on the boat page and add the Captained Charter endorsement with pricing. Guidelines and pricing is outlined in the Markel Helmsman Yacht manual.

The Excess Catch is added by Policy Change Endorsement by Underwriting, refer with details for approval and pricing. This coverage is not intended for commercial risks. 11LIVEABOARD USEMarkel Confidential12 MOTOR YACHT

SAILBOAT HOUSEBOATS

TRAWLER

So lets talk live aboards - Coverage designed for those that are living The Dream

Boats used as a Liveaboard commonly include Houseboats, Motor Yachts, Trawlers and Sailboats

12COVERAGE OPTIONS FOR THE LIVABOARD USERLiveaboard Enhancement EndorsementProvides additional protection while onboard or away from the insured yacht. Emergency Trip Expense ReimbursementDoes your applicant travel away from their mooring or marina location? (Discussed earlier)


Coverage is available for owners where their boat is a full time residence.

When living the dream, when an owner goes ashore, an owner would have coverage gaps that are important to the responsible owner.

Lets take a deeper look into the coverage features provided.

13LIVEABOARD ENDORSEMENTHighlights:This endorsement provides benefit for risk while aboard and off the insured yachtPersonal InjuryPersonal Liability Personal EffectsMedical Payments Additional Living Expense


Review Highlights

This is not available on liveaboard liability only policies, hull coverage must be purchased. A fee is associated with coverage limits selected.14LIVEABOARD ENDORSEMENTPersonal Injury: injury arising from false arrest, false detention, false imprisonment, malicious prosecution, libel, slander, defamation of character, invasion of privacy, wrongful eviction or wrongful entry.Personal Liability: coverage for bodily injury, property damage, or personal injury for which an insured becomes legally liable because of an occurrence not arising through ownership, maintenance, or use of the insured yacht, or non-owned yachtPersonal Effects: We will cover sudden accidental direct physical loss or damage to your personal effects while on board, or other than on board anywhere in the world. We will also cover Personal Effects for guests and unpaid crew while on board. Medical Payments: coverage is provided for necessary medical, nursing and funeral expenses with in one year of loss to any person while aboard the yacht. It also covers for bodily injury caused by the insured while not on the yacht whereas it meets the personal liability requirements.Additional Living Expense: if a loss is covered under physical damage that makes the yacht uninhabitable, we will pay for additional living expenses necessary to maintain the normal standard of living. Our maximum payment is 10% of the hull coverage. Coverage begins after the 14th day after loss.


Lets review these liveaboard enhancements a little closer. (read slide)

Always refer to endorsement MHY5080 which is available on the Markel Marine website for full understanding of coverage provided.

15Extended CruisingMarkel Confidential16

Some boat owners use their boat for cruising. They may take a few months exploring different destinations at different times of the year.

16COVERAGE OPTIONS FOR CRUISINGTrip EndorsementProvides navigational use for a defined limited destination and time period.Emergency Trip Expense ReimbursementDoes your applicant travel away from their mooring or marina location? (Discussed earlier)Emergency Tow and AssistanceWe provide $750 of coverage at no cost, but you can sell up to $5000 of coverage. Markel Confidential17

For boats that will undertake extended cruising, it goes without saying that the first consideration is the navigation.

In addition, consider increasing the Emergency Tow and Assistance coverage, which provides expense reimbursements when the boat is in distress. (Talk about what is covered) 17TRIP ENDORSEMENTHighlights:Provides extended navigation for a limited time period or tripDo not need to add/delete/change the policy conditionsTakes lay up period into accountAbility to mold conditions of trip by listing requirements.


If you had a Yacht, wouldnt your dream be to sail or cruise off into the sunset and live the life of the sea? Well, many of your clients may have that desire or are retired and would like to go off into that proverbial sunset.

This endorsement provides that opportunity. To accommodate this client need, we do have to be careful of the risk involved and we need to know underwriting information; details of prior experience in the area intended, dates (time of year), navigation limitations, and more as the trip may require.

When submitting, simply begin an endorsement adding the trip form (found in endorsements on the coverage page drop box), fill the form completely and refer to underwriting in the system for review, pricing, requirements, conditions and approval. 18NAVIGATION vs TRIPSWhen is it best to add a trip or just amend the navigation?What is the destination? What is the distance, miles?How long is the trip, dates?When is it to occur, time of year?


When an applicant is considering taking a trip, depending on certain factors would it be better to amend navigation, or add a trip endorsement.

If the intent is for a very long extended period travel, we may choose to change navigation, generally we would consider this if the trip is 6 months or longer in time. So, it is best to learn of the applicants intent for the full trip at the beginning of adjustment.

Remember, if a trip is to extend beyond the policy effective dates, we must separate the trip to coincide with each term.

19RECREATIONAL BOAT USE CRUISER

PONTOONPICNIC-RUNABOUTMarkel Confidential20

We can also provide exceptional coverage for the Recreational User.20COVERAGE OPTIONS FOR RECREATIONAL USEBoat House Boat Lift Trip EndorsementEmergency Trip Expense ReimbursementTrailer


Here we will explore the uses and coverage availability for the recreational user. Even though it is the most popular use of the boat, they too have unique needs.

We have spoken on a few of these coverage options earlier so, we will look a little closer at Boat Houses and Trailers21BOAT HOUSESMarkel Confidential22

These are Boat houses, just like the boats themselves, boat houses come in a variety of styles22NOT BOAT HOUSESMarkel Confidential23

Please note; there is a difference between a boat house and a houseboat, or, floating home, or a yacht with boat storage availability, or a home designed to look like a boat, a boat house is a structure intended to store the boat on the water.

It is not a covered dock.23THE BOAT HOUSE ENDORSEMENT

Highlights:Coverage up to $150k in valueACV settlement, the deductible is greater of 2% or $250Named Perils Medical coverage includedHowever, this coverage is not available in wind catastrophe zones: NC, SC, GA, FL, AL, MS, LA or TXMarkel Confidential24

Boat House coverage, like Boat lift coverage, is available to add benefit to ensure a well protected owner.

Boat houses are more popular in the Midwest, North and Northwest.

Simply enter the Boat House information on the Boat information page, you will need some description and value of the Boat House.

Please note that pictures should be secured to evaluate value and condition.

24TRAILERSWe will pay for the sudden and accidental physical loss to the trailer if used to transport the insured yacht.Coverage is ACV settlementCoverage does not exceed the Trailer value listed on the Declaration PageMust be designed and intended for the Insured YachtMarkel Confidential25

The Recreational User, may desire to move the boat to several different bodies of water, or, they may haul the boat for offseason layups, or, utilize a storage facility when not in use, here they typically may need to use a trailer.

There are many different trailer sizes designs. The one thing to note is they must be designed to carry the insured yacht. For instance, a sailboat would need a different trailer designed to protect the keel.

25ADDITIONAL COVERAGE FOR SPECIAL USESLimited Wreck RemovalFor liability only policiesTransit & Storage Used for boats in refit and/or storageBoat Show Use Endorsement If attending a boat showBroad Loss PayeeFor a Banks InterestMarkel Confidential26

Finally, there are many additional coverage options available to provide Special Use coverage needs.

Your applicant may have a particular situation to address.26WRECK REMOVAL ENDORSEMENTMarkel Confidential27

We have a solution for wreck removal coverage for liability only policies27WRECK REMOVAL ENDORSEMENTMarkel Confidential28Highlights:Under Protection and Indemnity coverage is provided for a Liability Only policy to add $7500 of Wreck removal. It also provides the availability to add $25,000 of Pollution coverage.This endorsement satisfies a Marinas coverage requirement the applicant may need to address.

When P&I only, the base policy does not provide Wreck Removal coverage, however, for $75.00 limited wreck removal can be added.

In addition, when you add the Wreck Removal endorsement, you may also add the $25k of limited pollution as well, if the boat would not otherwise qualify for Pollution, such as when the hull is wood or ferro cement and no acceptable survey is in place.

This is an optional endorsement that may be selected from the Coverage Page.28TRANSIT AND STORAGE ENDORSEMENTMarkel Confidential29

Do you have a client with a boat in refit, or repair, we can help you meet their needs.29TRANSIT AND STORAGE ENDORSEMENTMarkel Confidential30Overview:Intended for a boat in need of repair or going through an extended maintenance period.The policy is amended by Yacht may not be lifted or launchedNavigation has been removed.No electrical feed while awayAlso, the policy navigation is replaced by limiting the yacht to while it is ashore and with in the Radius of Transit shown in the endorsement schedule.

Transit and storage is intended for a period of time when the boat is placed into storage to be worked on for maintenance purposes or to refit. Many of the boats with this endorsement are in need of repair or undergoing refurbishment- Perhaps the boat was salvaged in Sandy.

Once work is completed, the policy can easily convert to a personal use policy. A survey will be required, so we encourage they have a surveyor (SAMS or NAMS) on board through out the process to inspect as the refit proceeds.

The risk of fire is a consideration, so no electrical feed is to be connected to the yacht while the owner is away.

There is no navigation coverage, so once the boat is lifted or launched, our coverage will cease.

30BOAT SHOW ADDITIONAL INSURED ENDORSEMENTMarkel Confidential31

Pictured is the largest and most known Boat Show in the U.S., really it is an International event.BOAT SHOW ENDORSEMENTHighlights:Provides Boat Show Promoter Additional Insured status.


When a boat show promoter requires that they are added as an AI to participate in a boat show, this endorsement satisfies that requirement.

This is an optional endorsement, submit to MAIC underwriting for pricing. When submitting, be sure the party to be listed as an AI, the boat show name and location including the physical address. 32BROAD LOSS PAYEE ENDORSEMENTHighlights:Providing the Loss Payees coverage interest for a policy breach by the insured.


The Broad Loss Payee endorsement performs as the title sounds, it broadens coverage in the interest of the Bank or Loss Payee by removing language that would prevent coverage for them by fraud, misrepresentation, material omission, willful or intentional misconduct, or criminal acts committed by the Insured.

This endorsement is added by endorsement on the coverage screen in Magic MHY and will need to have the bank information entered.

It provides the client to be able to satisfy the loan requirements placed by the Bank or Loss Payee when requested. A fee may be applied.33Questions?Phone #: 1-800-236-2862General Email: [email protected]

At this point, please take your phones off mute and feel free to ask any questions pertaining to this presentation on :THE MARKEL POLICY: SELLING BENEFITS BY BOAT TYPES AND ENDORSEMENTS. I hope it was informative and provides you an overview of coverage features that may be of benefit based on how the owner uses their boat.

(after question section) announce: The next session will be held on the dates of April 11th and 25th . Jennifers topic is BOATS OWNERSHIP & USAGE

Thank you for your time and participation in this presentation. Please note that emails will be sent out regarding future presentations on other watercraft insurance topics.

So thank you againand enjoy the rest of your day.

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MARKEL HELMSMAN YACHT BOAT USE FEATURES AND BENEFITS Presented by: Mario Chiappetti.

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