RECREATIONAL boating is a multibillion-dollar industry and represents one of the most popular pastimes in the country. Whether for fishing, water-skiing, cruising or sailing, boat ownership and use have held remarkably steady during the recent turbulent economic times. But the same enjoyable recreational activities associated with boating also expose its participants to a myriad of financial risks. Those risks create significant opportunity for personal-lines agents.

While boating presents both need and opportunity in the marketplace, many agents find themselves navigating "uncharted waters" when venturing into the pool of private watercraft insurance. The agent-and the boat owner-may run "hard aground" or, even worse, financially "sink" if the insurance needs are not handled properly. Fortunately, there are some "channel markers" and "lighted buoys" that can help agents navigate through the opportunities and pitfalls of insurance for boats.

Some agents, particularly those with only a few incidental boats to insure, most of which they've added to homeowners policies, may think, "Why bother?" Adding boats to a homeowners policy may be a quick solution, but it's not always in the client's best interest. Furthermore, a good aggressive boat insurance marketing program can lead to other business to which the agent may not otherwise have access. This is particularly true for prospects who are avid sportsmen with above-average incomes and net worths. Also, representing strong recreational boating insurers may help an agent retain clients.