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American Modern Expands Yacht Program on West Coast

Posted on 10 Apr 2013 by Neilson

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AMIGAmerican Modern Insurance Group (, a national specialty insurance carrier, today announced it has enhanced its yacht program in California and Washington, expanding coverage features in the base policy, repositioning endorsements as a way to increase limits, and lowering rates for experienced yacht owners.

The enhanced program, which takes effect in California immediately and in Washington on May 12, will roll up towing, emergency assistance and other coverage into the base policy with a more competitive rating system that relies more heavily on the ownership experience of the yacht owner.

"California and Washington are important markets for our yacht program and our enhancements are designed to meet the needs of this market, which has an older inventory of vessels," said Steve Cutforth, vice president, product management West region at American Modern Insurance Group. "Our program has always offered well-rounded coverage, but now we've made it easier for agents and brokers to present the benefits to their customers."

Among coverages that comes standard in the American Modern base policy for yachts are:

  • Consequential Damage: If a yacht is disabled by a cause not covered by insurance and suffers other damage that is normally covered, the initial cause does not void the coverage. For example, if mechanical failure leads to an accident that causes hull damage, the mechanical failure does not void the hull coverage, regardless of the vessel's age or value. This is a key feature for older inventory of West Coast yachts.
  • Equipment Parts Replacement: When there is a partial loss, depreciation is not factored into a settlement for parts less than 10 years old. This feature, also key for older boats, prevents erosion of the owner's deductible.
  • Broad Navigational Freedom: Yacht owners have very few limitations in where they take their vessels. They are covered when they cruise Mexico's Pacific Coast as far south as Rio Santo Tomas, Baja.

The enhanced yacht program also features new "Yacht Plus" endorsement limits:

  • Emergency Assistance: Reimbursement may be available up to $2,500 for emergency assistance and towing, and up to $10,000 for search and rescue.
  • Personal Effects and Fishing Gear: Limits are offered up to $10,000 for personal effects and fishing gear.
  • Longshore and Harbor Workers' Compensation Act: Covers requirements to provide financially for a paid, part-time captain and crew injured while working on, servicing or supplying a vessel.

About American Modern Insurance Group

American Modern Insurance Group ( is a national specialty insurance carrier with approximately 1.7 million policyholders. Licensed in all 50 states, the company delivers flexible, specialty coverage across the property and recreational markets. A subsidiary of Munich Re, one of the world's leading risk carriers, American Modern is rated A+ Superior by A.M. Best Company and has been ranked one of Ward's top 50 performing insurance companies since 1999.