High-Performance Boat Insurance

High-Performance Boat Insurance can be Complex – Your Marine Insurance Broker Should Be Your First Call

When you’re in the market for a high-performance boat, the thrill of speed and power is undoubtedly at the forefront of your mind. Whether you’re eyeing a sleek Cigarette Racing model, a versatile Midnight Express, or a powerful Nor-Tech, there’s more to consider than just the boat’s top speed and cutting-edge design. One of the most critical, yet often overlooked, aspects of owning a performance boat is ensuring you have the right insurance coverage. Here’s why getting your marine insurance broker involved early in the process is essential.

The Need for High-Performance Boat Insurance

Most standard boat insurance policies are tailored for vessels operating at speeds up to 70-75 mph. However, once your boat exceeds this threshold, it enters the realm of high-performance boats, requiring specialized insurance coverage. High-performance boat insurance is designed to address the unique risks associated with these powerful machines, from increased speeds to specialized engine configurations.

At On The Water Marine Insurance, we have access to carriers that specialize in high-performance boat insurance. We can provide coverage for boats that reach speeds up to 120 mph and even have a carrier that insures boats capable of hitting 170 mph. Whether you’re planning to participate in poker runs, navigate offshore waters, or simply enjoy the thrill of high-speed cruising, having the right coverage is crucial.

Why Involve Your Marine Insurance Broker Early?

Involving your marine insurance broker early in the boat-buying process can save you from unexpected surprises and ensure that you secure the right coverage for your high-performance boat. Here’s why this step is so important:

1. Carrier Qualification: Matching Your Boat to the Right Insurer

Not all insurance companies are equipped to handle the unique demands of high-performance boats. Each carrier has specific criteria that they use to determine whether they can offer coverage for your boat. This includes factors such as:

• Top Speed Limits: Standard boat insurance typically covers speeds up to 70-75 mph. For boats that exceed this speed, such as those reaching 120 mph or even 170 mph, you’ll need a specialized policy. We work with carriers that can cover these higher speeds, ensuring you’re protected regardless of how fast your boat goes.
• Engine Configuration: The number and type of engines on your boat can affect your eligibility with different carriers. Some insurers have a maximum limit of four outboards, while others can accommodate more. Similarly, with stern drives, some companies may limit coverage to two engines, while others can offer policies for boats with more. If your engine is supercharged, that is also important for us to know. Some companies are only looking for stock condition engine configurations; a modified or added supercharger may mean your insurance company options are limited. Knowing these limitations upfront allows you to make informed decisions about your boat purchase.
• Boat Age and Condition: Boats over ten years old typically require a marine survey to assess their condition before they can be insured. This survey can influence your eligibility with certain carriers and may impact the cost of your premium. By involving your broker early, you can ensure your boat meets the necessary requirements and avoid any delays in getting coverage.

2. Avoiding Coverage Gaps: Ensuring Comprehensive Protection

One of the biggest risks in purchasing a high-performance boat without consulting your broker is the potential for coverage gaps. These gaps can occur if your boat’s speed, engine configuration, or other features exceed the limits of a standard policy. For example, if your boat can reach 130 mph but your insurer only covers up to 120 mph, you could find yourself in a situation where a carrier may deny a claim. By working with your broker, you can identify these gaps early on and ensure you get the comprehensive protection you need, tailored to your boat’s specific capabilities.

3. Navigating Complex Requirements: Understanding What’s Needed

High-performance boats often come with complex insurance requirements. Here are some key points to keep in mind:

• Named Operator Endorsements: High-performance boat insurance is typically a named operator policy, meaning only specific individuals listed on the policy are allowed to operate the boat. There is no permissive use, so anyone who isn’t named on the policy won’t be covered in the event of a claim. This ensures that only experienced, qualified operators are handling the boat.

• Boater’s Resumé: To qualify for coverage, especially for boats over 27 feet, many insurers will require you to submit a boater’s resumé. This document details your prior experience with similar vessels and is crucial in demonstrating your ability to safely operate a high-performance boat. Don’t worry about creating this on your own—we provide the necessary forms for you to fill out, making the process as straightforward as possible.

• Marine Surveys: As mentioned earlier, older boats often require a marine survey. This thorough inspection assesses the boat’s condition and seaworthiness, which can affect both your eligibility for coverage and the premiums you’ll pay.

4. Maximizing Your Coverage Options: Tailoring Policies to Your Needs

Every boater’s needs are different, especially when it comes to high-performance boating. Whether you’re planning to participate in poker runs, engage in offshore navigation, or simply enjoy high-speed cruising, your broker can help tailor your policy to fit your lifestyle. By involving your broker early, you can ensure that your policy covers all the activities you enjoy, without any surprises.

The Bottom Line: Secure Your Thrill with the Right Coverage

Purchasing a high-performance boat is a significant investment, and protecting that investment with the right insurance is essential. By involving your marine insurance broker early in the process, you can ensure that you’re getting the best possible coverage tailored to your boat’s unique features and your specific needs. From understanding which carriers will insure your boat’s top speed to navigating complex requirements like named operator endorsements and marine surveys, your broker is your best ally in making sure you’re covered on all fronts.

At On The Water Marine Insurance, we specialize in guiding high-performance boat owners through these complexities. Whether your boat reaches 120 mph, 170 mph, or anywhere in between, we have the expertise and carrier relationships to ensure you get the coverage you need.

Call me anytime with any question at (513) 653-3800.

As always, remember to wear your life jacket and enjoy the water!