Owning and operating a boat – for either commercial or recreational purposes – can be quite the investment. To have a natural disaster like Hurricane Sandy tear through the East Coast and damage expensive vessels and important equipment is something that no seaman wants to have to experience, but unfortunately these kinds of risks are inevitable. What boat owners may not have anticipated, however, are the potential changes in the marine insurance industry that may take place following the super storm.
Marine insurance specialists have said that rates will likely increase nationwide following Hurricane Sandy, reports Trade Only, a magazine for marine industry professionals. According to the source, there has been a surge in insurance claims over the past two years due to natural disasters such as hurricanes, tornadoes, droughts and floods.
An independent consultant advised that the marine insurance industry will likely increase prices as a way to make up for the money it has lost.
According to the Boat Owner's Association of the United States, (BoatUS) the estimated cost of Hurricane Sandy-related damage for recreational boats alone is about $650 million, making it the largest industry loss since it began keeping track in 1996.
BoatUS technical director Bob Adriance said that the damage left behind by the hurricane will probably result in boat and marina owners investing in more storm-resistant docks, vessels and equipment to lower their risk of severe losses in the future.
With these projected changes in the marine insurance industry on the horizon, it's important for organizations and individuals who spend a lot of time on the water to understand what's available to them. By partnering with marine insurance agencies, people can benefit from the help of professionals who understand the challenges and opportunities available and have years of experience building relationships with the highest-rated providers.