Insurance Carriers News

On January 15, 2021, the U.S. Coast Guard issued an Advanced Notice of Proposed Rulemaking (ANPRM) for Safety Management System (SMS) requirements in the domestic passenger vessel industry (Docket No. USCG-2020-0123). This requirement will have the largest implications on the domestic passenger vessel industry since the revisions of 46 CFR Subchapter T & K in the mid-90s. However, the question remains, is it necessary?Over the last three decades, the effectiveness and need for…

Global trade tensions have captured headlines in recent months, as the imposition of a series of tariffs and counter-tariffs by various global trade counterparts has raised questions about the possibility of a trade war. Such development could potentially have an impact on global trade flows, and, consequently, the companies which facilitate international movement of goods.Though the situation is still developing and the final impact is uncertain, Gregory Draco, the Chief U.S. Economist at Oxford, predicted in July that the tariffs would create an 0.1 percent to 0.2 percent drag on U.S. GDP.

When it comes to insuring your assets, changing markets and risk variables demand better understanding of the underwriting process, as well as a long-term, stable relationship with an insurer who – like you – is in for the long run.U.S. inventor Thomas Edison once said, “There is no substitute for hard work.” Nobody knows this better than the men and women who operate diverse and industrious workboat fleets.Ferrying commuters, towing dry and liquid bulk, and assisting larger ocean…

A busy market, fraught with risk, needs specialized protection. The marine construction business is booming in the United States for many reasons. Nationwide, ports are expanding, deepening their channels to accommodate the bigger, so-called post-Panamax vessels. And, that means more than just deepening the channel. Docks, piers, cranes and other shoreside infrastructure need to be bolstered in order to stand up to heavier vessel impacts. Other infrastructure and bridges also need updating to be brought into the 21st century.

Harry Diamond, Vice President and Chief Claims Officer at WQIS, is celebrating 21 years with the company this year. Diamond is a graduate of LaSalle University with Bachelor of Arts degrees in social studies education and history; he also holds an Associate degree in Risk Management. He began his insurance career right out of college when he was hired by a brokerage firm whose main client was Keystone Shipping Company. Diamond continued with the firm for four years until he changed his career path because of “an itch that needed to be scratched” – his desire to be a teacher. For the next six years, Diamond taught eighth grade at St. Mary’s Interparochial School in the Society Hill area of Philadelphia, Pennsylvania.

The Affordable Care Act (ACA), otherwise known as Obamacare, the recent healthcare plan in the United States, is affecting the international superyacht industry, according to yacht insurance expert Eva Maria Karlsson of Superyacht Insurance Group (SYIG). Maria, who is president/broker at SYIG, said, “The biggest challenge presently is Obamacare. Interestingly enough, it’s actually affecting the international marine industry, in that we now have to cope with tighter guidelines regarding time spent in-and-out of the U.S. waters. Most underwriters require that the yachts spend at least six months outside the U.S. in a 12-month period. It doesn’t matter that the yacht is registered outside the U.S. and the crew are non-U.S. “Some underwriters can’t even provide coverage for U.S.

As a maritime business owner, your day-to-day focus is on managing and growing your business. Understandably, thinking about and understanding the nuances of your insurance coverage is not likely to be among your top priorities. However, what if the unthinkable happens and your docks and piers are seriously damaged? A review of the damage with your insurance claim adjuster will likely lead to discussions of “coinsurance percentage,” “coinsurance penalty” and “insured to value.” While these aren’t terms you’ll use very often, it’s important to understand how coinsurance works, especially since a misunderstanding can impact how much you receive on an insurance claim versus how much you anticipated receiving.

Marine insurance – just like health, automobile and homeowner’s insurance – can be a valuable safeguard in case something unexpected happens. And when something bad happens, it provides reassurance that you have assistance in place to help get back to business quickly. In the maritime industry, there is a high likelihood that your businesses will experience a loss at some point. Vessels run aground, cargo containers get damaged, and fires occur in shipyards. These are just some of the types of situations that can – and do – happen routinely to maritime owners and operators. Knowing these risks exist, you should ask yourself two questions to make sure your business is prepared: First, what can I do to mitigate the risk of loss before an incident occurs?

Business is cyclical, and nowhere is there more evidence of its cyclical nature than in the insurance market, characterized by ups and downs in insurance premiums, coverages and profitability. By most accounts, the current insurance market has been one of the most competitive in recent memory. With intense price-cutting and expanding coverages, these conditions are typical of a “soft” market which is very much a buyers’ market. The obvious benefits of a ‘soft’ market to the buyer are lower insurance premiums…

Most every company knows it should have a plan to deal with catastrophe. That’s especially true for shipyards and vessel owners who often ply their trade in hurricane zones, where weather can rip apart a lifetime of work overnight, make confetti out of assets, and leave disarray in its wake. Emergency plans can be simple or complex, depending on the needs of a specific business. There are a number of resources to help business owners create customized plans, including online templates, detailed guidelines and model documents. A company’s insurance agent and carrier can also serve as useful resources for businesses trying to determine what should be in a plan, and how to best position themselves to recover quickly if disaster strikes. A plan by itself, however, is not enough.

“It’s important that boat owners understand the details of their hurricane coverage before a storm approaches,” said Eric Baillargeon, GEICO Insurance Agency boat program manager. Hurricane haul-out protection typically reimburses boat owners a percentage of the cost to move a boat to a safe location when a hurricane watch or warning is issued. Some insurance carriers will also cover expenses such as storage or mooring fees, strapping down and re-launching the boat in calmer waters once the storm has passed. “It’s much more cost-effective to move a boat to a secure area than to risk facing a dangerous hurricane,” said Baillargeon.

Construction is a complex business. Equipment can break down; employees can be injured; a project can go awry in unexpected ways. Add a marine element to the work underway, and the pitfalls that a contractor must navigate to manage risk become even more challenging. Marine contractors have long understood that they need specialized coverage and have sought out ocean marine insurance carriers with the expertise to help them. Each project they bid on, however, can come with a variety of special requirements.

The maritime industry is notorious for braving the elements. One element however — the human one — poses greater safety risk than rough seas or gale-force winds and is requiring more companies to take an aggressive approach in emphasizing every employee’s role in their risk management efforts. While maritime companies have developed technologically sophisticated hull designs, stability systems, propulsion systems, and navigational equipment, overall the industry’s safety record could be better. It is undoubtedly one of the world’s most risky and complex industries. And as such, it requires very attentive focus on safety and risk management issues, especially in light of the economic and workforce issues facing the industry today.

Todd Shipyards Corporation announced financial results for the second quarter ended Sept. 28, 2003. For the quarter, the Company reported net income of $2.0 million or $0.35 per diluted share on revenue of $44.4 million. For the six month period then ended, the Company reported a net loss of $0.2 million or $0.05 per diluted share on revenue of $65.6 million. In the prior year second quarter ended Sept. 28, 2002, the Company reported net income of $2.0 million or $0.36 per diluted share on revenue of $40.6 million. For the six month period then ended, the Company reported net income of $4.3 million or $0.77 per diluted share on revenue of $89.8 million. The Company's second quarter revenue of $44.4 million reflects an increase of $3.9 million (9%) from the same period last fiscal year.

Having been rather "soft," or in layman's terms "very competitive" for the last several years, the marine liability insurance market has begun what appears to be an upward trend in the pricing cycle over the last few months. There are, to be certain, several factors influencing this trend. The collapse of marine insurance giant Reliance Insurance Company and its subsidiaries has caused quite an uproar among various underwriters still active in the market. The resulting search for coverage on the part of insureds left in the wake of Reliance's demise has put a strain on these underwriters and their capacity. Also, the collapse of two major Australian reinsurers, as well as others in the Pacific Rim, have played a role in the tightening of the market.

Northrop Grumman said on March 7 that excellent fourth quarter numbers posted in Newport News helped keep the company's shipbuilding business going strong despite suffering heavy damage from Hurricane Katrina. Northrop Grumman estimated that the company incurred $1 billion worth of property and equipment damage on the Gulf Coast. According t the daily Press, Northrop's insurance carriers are covering the first $500 million, but are questioning the other $500 million in a matter being fought out in the courts. As for the workers, more than 90 percent of Northrop's workers in the hurricane-damaged region have returned. Still, work is not back to normal as the workers still have lots of personal matters to attend to that requires lots of time off.

Todd Shipyards Corporation announced financial results for the first quarter ended June 29, 2003. For the quarter, the Company reported a net loss of $2.2 million or $0.42 per diluted share on revenue of $21.1 million. For the prior year first quarter ended June 30, 2002, the Company reported net income of $2.3 million or $0.41 per diluted share on revenue of $49.3 million. The company's first quarter revenue of $21.1 million reflects a decrease of $28.1 million (57%) from the prior year's first quarter levels. The period to period decrease is primarily attributable to the relative levels of Navy repair and overhaul projects and reflects…