Summer’s Here! Check up on Your Client’s Watercraft Coverage

May 19, 2021

Which leisure and lifestyle industry has been booming among Canadian families this past year? If you guessed the boating industry, you’re right. According to a recent spending report by Moneris, Canadians spent more on outdoor recreation compared to last year across Alberta, Ontario, and the country as a whole:

Ontario boat dealers saw a 26% increase in volume, including a 17% increase in rentals and leases

Alberta boat dealerships saw about a 15% increase in volume over the same time last year

Boat dealers across Canada saw an overall 17% volume increase in transactions (1)

So, what makes boating such a popular choice in 2021? In these uncertain times, boating offers families a safe and relatively local passport to adventure and escape during the summer months. Boat ownership offers Canadians the freedom to socially distance while enjoying some of their most favourite summer activities - swimming, tubing, fishing, waterskiing, or simply kicking back and soaking up the sun on the lake.

This also means that many clients are trying out boating and boat ownership for the first time, and will need guidance on being properly insured.

Do Your Clients Have Adequate Insurance Coverage for Boating Season?

Did you know that there was a 26% increase in boating sales from 2019 to 2020? According to a survey by the Toronto Boat Show, there was also a 17% increase in boat rentals and leases from 2019 to 2020.

And it looks like this trend will continue. In fact, demand is exceeding supply at historic levels currently. This is driven by both a sustained interest in boating and disruptions in the supply chain due to the pandemic. According to Moris, 80% of boat dealers anticipate low supply or even no supply by May 2021. (1)

Given that more people are vacationing at home and investing in things like watercraft, it is time to check up on those clients to make sure they have proper insurance coverage and remind them of the risks of operating a boat on the water this summer.

What Could Go Wrong on the Water

Inexperience, going too fast, or not paying attention, or looking out properly could all lead to a collision. This could be a collision with another vessel, but also with a submerged or partially submerged rock.

If the collision is with another boat, the client faces several possible very expensive costs:

Repair costs for damages to the other watercraft

Damage to the client's watercraft

Medical payments for injuries caused to the people on the other watercraft, the client and their family, or any guests that may be on board at the time.

Insuring Watercraft Is A Year-Long Necessity. Here Is Why.

Watercraft insurance is necessary not just during boating season, but all year long. A watercraft is an expensive investment, and that investment should be protected.

A boat is an expensive investment and it doesn't just need protection during boating season, but year-round as damage can occur even while docked.

Damages resulting from inclement weather:

If the boat were to be damaged or even severely damaged in a storm, the client would have to pay out of pocket for repairs or accept permanent damage if they couldn’t afford to do so. If they are still paying off the boat, this would be a most unfortunate loss.

Fire, theft, and vandalism can happen any time of the year. Without coverage, replacing equipment or making repairs because of this could be quite expensive

SWG ELITE: Watercraft Policy: Available in Ontario and Alberta

The SWG ELITE Watercraft policy is designed to provide coverage for all types of boats. Whether your clients own a fishing boat, cuddy cruiser, houseboats, or just a personal watercraft, we have a product that meets their insurance needs. This policy is written through Nautimax and has extensive coverages for all your client’s gear as well as boat trailers, fish-finding equipment, and much more.

Coverage Highlights:

Navigation within the inland waters of Canada and the U.S.A., not south of 40°N

Guaranteed Replacement cost on vessels 3 years or newer

Agreed Value/Replacement cost on more than 3 years but less than 15 years

Actual cash value

Liability only is also an option within this program

Liability limits of $1,000,000 and $2,000,000 available on all risks

Visit our watercraft product page for details about this specialized policy.

To learn more about our full range of insurance products, visit https://swgins.com/.

Content is current as of the date of broadcast and is subject to change without notice.


Sources:

  1. https://toronto.ctvnews.ca/wave-of-consumer-demand-may-cause-boat-shortage-in-2021-1.5277214