The most lucrative year for the marine industry since 2007 is upon us, according to recent news reports. 2014 proved to be the first major onset for improvement after the recession. Fortunately, the beginning of 2015 indicates no signs of stopping either. As the recreational marine industry booms, business for your clients should as well, meaning that there is no better time to review their Recreational Marine Insurance policies and ensure they are financially protected against any claims of negligence or damage.
Recreational marine industry products and services such as yacht sales, powerboat sales, and accessories are at an all-time high. The Sun Sentinel reported that retail spending on boats, engines, marine accessories, and services nationwide likely rose as much as 5 percent in 2014 from an estimated $37 billion in 2013. These figures would surpass the highest spending year to date in 2007. As the figures are not solidified because we are halfway through the year, the improvement of the industry could prove to be higher.
For example, Horizon Yachts, a Taiwan boat builder, sold an estimated dozen mega-yachts per year before the recession. The super vessels cost a minimum of $5.7 million to be custom built and shipped to Florida. During the recession, sales dropped 50 percent. However, sales are nearly completely restored as of the first quarter of 2015.
What’s more, upwards of 2,500 new watercrafts over 15 feet have been registered in Florida in the last year alone. This increase reflects a 21% improvement from the previous year. Overall, a Marine Industries Association of South Florida study found that the marine industry contributed $11.5 billion to the South Florida economy last year.
Experts attribute the recent success of the industry to an improving economy, lower fuel prices in comparison to recent years, expanding Florida population, and lower interest rates for buyers.
While the recreational marine industry continues to surge, your clients are likely to require a variety of insurance solutions to adequately protect their businesses from potential claims. At Merrimac Marine Insurance, we are dedicated to providing modern, comprehensive coverage, aggressive claims management, and loss control consultation services to cover any risk exposures your clients might face. For more information, contact us today at (888) 344-1687.