Specialty Broker Shares Thoughts on Today’s Marina Market

Barbara Galgiani has spent her entire career specializing in both recreational and commercial marine industry – marinas, boat yards, hospitality, excursion boats and marine contractors. Roughly 90% of her revenue comes from this specialty.

After working as an account manager for a specialized brokerage, she joined a firm in Modesto to become a full-time producer, starting with no book of business. During that time, she not only built her own book of business but expanded her education by completing four insurance industry educational designations. After 20 years with the Modesto firm, Galgiani joined LP Insurance Services with one goal in mind – to double her book of specialty business.

In this interview with Insurance Journal, Galgiani shares her thoughts about insuring marinas.

How would you describe today’s insurance market for marinas and boats?

Galgiani: The term “hard market” has been used by others in general. I would refer to the marine market as hardening in some areas, but market opportunities are present depending on the risk and underwriter. The exit of Allianz in the hull and P&I market has had an impact and we are seeing hull and P&I costs increasing on both the primary and excess lines.

For marina operators on the west coast, property rates and availability have been impacted by location. If a risk is in a fire sensitive area placement can be more difficult and the insured may be required to take steps to minimize the exposures.

How did you become a specialist in this area and what do you enjoy about it?

Galgiani: I worked as a customer service representative for many years ago for the president of a firm that specialized in recreational marine insurance. I was hooked from day one to this class of business, becoming involved in several industry associations while also expanding my insurance. When I decided to pursue a sales career, I joined another firm and remained there for 20 years building my book of business maintaining the largest book in the agency for multiple years. Joining LP Insurance Services in 2018 has given me access to additional services to support my existing clients while also providing resources to expand my book of business with larger and more complex clients.

Are there challenges facing marina owners today in the market?

Galgiani: From an availability perspective, overall the marketplace is able to fill the coverage needs of the marine industry. It can be challenging if a marina offers activities that underwriters are uncomfortable considering such as parasailing, water ski school instructions, or personal watercraft rentals. Aging properties can also present challenges to placing proper limits of coverage and broadened policy forms.

The area that I see as having vulnerability is the commercial hull and P&I coverage areas for availability and pricing. The ocean cargo coverage marketplace has also seen restricting of availability and pricing.

As all business are facing an increased risk of cyber losses, we are seeing a trend of policy purchases in this area.

Given the uptick in the overall economy, are you seeing more people investing in boats today?

Galgiani: As I talk to our boatyard owners and managers, we are seeing an uptick in discretionary improvements to vessels. Used boat sales continue to be strong and new boat sales are enjoying improved numbers over the previous year. A number of marina operators are in planning stages to improve or replace their existing structures and are seeing increased occupancy of their facilities. Resort operators saw a robust year in 2019 and early indicators have led to an expectation of another good year in 2020.

Topics Agencies Excess Surplus Market