Marine Insurance?

Discussion in 'General Discussions and Advice' started by Jaco Schoeman, 17 Mar 2009.

  1. Jaco Schoeman

    Jaco Schoeman MASA Contributor

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    Hi all members. When I am not on this site, I am an Insurance Broker. I have given this plenty thought and also did a little bit of research, but I now need all your input here. I would have loved for this to be a poll, but I'm not sure how to make it into a poll.

    I am wanting to create a niche insurance product for this hobby. There is a product out on the market called PetSure, but that covers your dogs, cats and horses mostly. The product I want to launch will would probably not cover our fish / corals when they get ill and die but it would cover other aspects that might be of importance to us. Not everyone has R8000 to take out of their pocket in the middle of the month to replace a Chiller that seized to work while their Metal Halides are boiling all our livestock... So where do you get the R8000 from?

    That is where my product comes in. It will basically cover things like:

    * Mechanical failure of important equipment ie. skimmers, chillers, lights, ozonizers, RO Units etc.
    - The idea here is that it pays out within 24 hours to replace the item with one of the same make/model/size to prevent death in livestock.

    * The tank itself
    - This will pay out the total value of the tank glass should your tank burst

    * Loss of stock due to bursting of tank
    - Reef Maniac mentioned that he had a 500 litre tank burst in his living room... I can imagine a fully stocked tank can leave fish / coral throughout your house, and the result would be dead livestock. This cover will pay out the losses occured in this event of the livestock that has died.

    I am also getting my head around how to insure things like heaters failing to switch off and boil everything, power surges/outage/lightning damaging equipment etc...

    The obvious idea is to keep premiums low (as you all are paying other insurance too) but I can see a definete gap in the market here. I know what we all spend on our equipment, and if I should loose eg. my skimmer now, I would have serious problem.

    My question to you is can this work? I will need to do a lot of work to lay this product before a major insurer to convince them that there is a market for this. Then I will have to build all the terms, inclusions, exclusions, extensions etc and work out what to charge etc. So before I go through all that, I need your backing...

    If one of the Site Moderators or someone can make this into a poll, please do so.

    Thank you!!!
     
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  3. scubaninja

    scubaninja

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    Sounds like a great idea!! not sure how you would do it for a nation of reefers, but it sounds like a plan. I'm not sure how everything works in insurance but how would you know that the equipment isnt already faulty and all the other things that can go wrong is not the fault of the owner? i think you have a good idea, and i also think it is going to be a LOT of work:) good luck:thumbup:
     
  4. dallasg

    dallasg Moderator MASA Contributor

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    i would be interested, actually asked my broker last week about a product, but i will def support you
     
  5. Jaco Schoeman

    Jaco Schoeman Thread Starter MASA Contributor

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    Thanks Scuba. That is true. And yes, human error is a factor but that is the risk that needs to be taken unfortunately. Insurers know this risk, yet they still cover for it. It will be a lot of work, but if it is worth while then why not. I am also not doing this to get rich, I am doing this so that MY OWN THINGS CAN GET COVERED:lol:!!!! No really, it will take some research and a bit of trial and error, but that's my job...
     
  6. Jaco Schoeman

    Jaco Schoeman Thread Starter MASA Contributor

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    Thanks Dallas!!
     
  7. dallasg

    dallasg Moderator MASA Contributor

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  8. Rory

    Rory Admin MASA Contributor

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    Post the question and options you'd like and one of us will add a poll.
     
  9. Jaco Schoeman

    Jaco Schoeman Thread Starter MASA Contributor

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    Thanks Rory...

    Question: Would you like to see an insurance product on the market to insure your tank?

    Options:
    1) YES
    2) NO

    Simple as that
     
  10. jacquesb

    jacquesb Retired Moderator

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    Cool - yes, please do.....
     
  11. ml

    ml

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    Defnetly intrested. And I am only 16 years of age. That would take a great deal of my shoulders. I was talking to my mom + dad to take out a Insurance but they sad there isn't such a thing but now Mabe we all can make it happen.

    ML
     
  12. FransSny

    FransSny

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    jaco i was discussing this about 15 mins ago with my boet who is also in the insurance game....that place where you always get something......

    when i spoke to my broker a year or so ago regarding insuring my Bonsai trees, they could do it....but due to the risk hell of an expensive, i would def support if you could come up with a product
     
  13. Jaco Schoeman

    Jaco Schoeman Thread Starter MASA Contributor

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    Things like bonsai are the same as stamps or paintings for example - collectable items... That is why i could be insured (fire or theft cover) Aquariums are a bit more involved that is why there is no such thing.

    I am very pleased with the response you guys have given thus far so I think I will get the ball on the roll. We can place an add in the mag, I will give flyers to the LFS and I need to visit a few LFS to get an agreement on whom I will use to replace the items lost etc. ";) ;)to the LFS sponsors..."

    So I think it is safe to say that I can go ahead with the motions, I will try and get this done asap as winter is upon us!!!
     
  14. lIghty

    lIghty

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    about time, I contacted my broker once before about this, he said he could cover the tank, but only against accidental breakage, not when it breaks by itself (could alway hit it with a hammer after :whistling:), but not any of the equipment, so go for it, it price is right i'm in!

    Also, what about damages caused by the flood to the property etc.?
     
  15. Pete

    Pete

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    Would also be interested in the product if the price is right
     
  16. FransSny

    FransSny

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    should be covered by contents...know mine is

    thanks for the info Jaco....clears it up a bit for me
     
  17. Warr7207

    Warr7207

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    Very cool idea :)
     
  18. shiks

    shiks

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    Jaco ....i defintely would suport you if u could sort out a package ....so YES

    and lightly the local insurance CSI s wold prove that the glass breakage was caused from outwards in and not vice versa then u go to jail
    :)
     
  19. FransSny

    FransSny

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    shiks...not in the insurance game by any chance;)
     
  20. wukkie

    wukkie

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    As far as I understood, the tank would be covered under household insurance as it is a piece of funinture, and it it busts, the water damage woudl be covered as well, but this could be under HOC. Not sure, just what I have heard in the past. I would hope that all the items woudl be covered for fire & theft, but as for teh rest, it is a great idea, all depending on the cost.
     
  21. Tobes

    Tobes Retired Moderator

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    Yeah, definitely interested, lets see what you can come up with ;)
     
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