In the United States, there are several large conglomerates involved in the boat building industry. These companies often operate multiple brands and have a diverse portfolio of boat types ranging from recreational boats to commercial vessels that cater to the needs of recreational boaters and water sports enthusiasts as well as to the niche market segment represented by a segment of affluent individuals, families, and corporations seeking exclusive, high-end yachts for leisure, entertainment, and business purposes.
Large boat builders and conglomerates in the marine industry face heightened risks compared to smaller boat builders due to their:
- Scale of operations
- Extensive product lines
- Broader market reach
One significant risk is the potential for large-scale product recalls or liability claims resulting from defects or malfunctions in their boats, which can lead to substantial financial losses and reputational damage.
It is common for major boat manufacturers to have more complex supply chains and manufacturing processes, increasing their exposure to supply chain disruptions, regulatory compliance issues, and environmental liabilities.
To address these risks, specialized insurance solutions tailored for marine conglomerates and ship building corporations are available.
These insurance packages may include product liability coverage to protect against claims arising from defective products, business interruption and supply.