Marine insurance at Berkshire Hathaway Specialty Insurance has evolved far beyond its traditional maritime-focused origins, with only a small part of the company’s marine portfolio actually involving vessels on water, while the remainder encompasses diverse modern risks from data centers supporting artificial intelligence to construction equipment and supply chain coverage. This transformation reflects broader industry shifts as marine insurers adapt to contemporary business needs while maintaining the collaborative expertise that has historically defined the sector.

The term “marine insurance” has become something of a misnomer in today’s market. “When I say marine, everyone thinks about ships, yet our marine portfolio at BHSI is only about 5% on water,” explains Ben Wyatt, Head of Marine, North America at BHSI. “The portfolio is comprised of inland marine risks, domestic transportation and warehousing through the cargo stock throughput product.”

This evolution encompasses contractors’ equipment, including everything from warehouse forklifts to construction cranes and port equipment. Oil and gas equipment falls within this category, as does much of the emerging data center work. The marine team also handles smaller builders’ risks, highlighting how construction projects now fall under marine insurance coverage.

“We also have an excellent team that specializes in more complex, larger builders’ risk projects, and we remain very collaborative with them, sharing knowledge, expertise and experience,” he said.

Ben Wyatt, Head of Marine, North America, BHSI

Stock throughput products offer comprehensive transit and storage coverage—essentially cradle-to-grave protection for goods and inventory throughout the supply chain. Despite the product’s value, Wyatt notes that “we’re still having conversations educating established large companies about the benefits of the stock throughput coverage, whether they have a risk manager or not.”

Many companies don’t realize their property coverage may include transit protection, but it’s often sublimited with higher deductibles and restrictive terms. The global supply chain has faced numerous challenges in recent years, from the current conflicts and COVID disruptions to the Suez Canal blockage, U.S. port congestion, and labor strikes.

The marine insurance market presents several compelling opportunities driven by technological advancement and economic shifts. BHSI is positioning itself to insure data centers and servers supporting AI infrastructure, representing a significant departure from traditional marine risks while still falling within the sector’s expanded scope.

“We’re looking to insure data centers and servers supporting AI, while still managing traditional challenges like war conflicts and vessels navigating troublesome areas,” Wyatt said.

Vessel size increases over the past decade have created substantial insurance requirements. “The limits required for U.S.-based and global customers in the petrochemical, oil, gas, and LNG sectors are significant, as they can have $100-150 million worth of LNG or oil on a single ship,” Wyatt observes. This necessitates substantial insurance coverage limits that create opportunities for insurers capable of handling such exposures.

Beyond petrochemicals, manufacturers and distributors require higher limits due to price increases, particularly in cargo coverage. While specific data would be so wide ranging, Wyatt believes “the average value of goods in a container has increased significantly over the past decade”.

The stock throughput market presents particular promise as supply chain complexity increases. Companies are recognizing the need for more comprehensive coverage as they face ongoing challenges including geopolitical conflicts, natural disasters, and infrastructure disruptions.

BHSI’s marine team, which has grown to 10 members over 18 months under Wyatt’s leadership, structures itself around specialized expertise rather than traditional ocean and inland marine divisions. The team includes cargo stock throughput specialists, a transportation segment focused on domestic trucking and warehouse legal liability, contractors’ equipment and floaters coverage, and builders’ risk expertise.

“I structured our team around expertise, not trying to make everyone a jack of all trades but fostering specialist knowledge with collaboration,” Wyatt explains. Team members consult with colleagues when working outside their primary expertise, recognizing that comprehensive marine underwriting requires diverse knowledge sets.

Geographic distribution across New York, Boston, and Chicago supports market understanding while presenting collaboration challenges. The company maintains an in-office focused work week and views individual and group efforts to communicate as key to fostering meaningful and effective connections. “Successful collaboration comes down to the character of the people we’ve brought into the team,” Wyatt emphasizes.

Character and Capability

Character assessment focuses on two core values: respect and passion. “I believe to enable effective collaboration and communication you have to respect your teammates above all else,” Wyatt states. “Passion is equally important because it drives motivation. This includes passion for the team, company, colleagues, knowledge expansion, and achieving positive results.”

The team’s success depends on four key elements: service, expertise, flexibility, and BHSI’s financial stability. Service remains paramount for building broker relationships and understanding customers. Expertise enables informed decision-making in difficult markets, while flexibility allows creative solutions tailored to individual customer situations.

“We’re building as collaborative a culture as possible because we see the value in it,” Wyatt said.

“It requires effort from all team members to pick up the phone and have discussions with colleagues in different offices,” he added.

“The success of our team depends on individuals’ character, willingness and desire to contribute to our collective success.”

This collaborative approach extends to customer relationships, where value alignment proves crucial across the spectrum from small wholesale deals to sophisticated Fortune 500 companies. Recent customer interactions demonstrate this flexibility, with one risk manager receiving 12 different deductible options to balance risk retention versus transfer.

“I love how our team challenges each other, including those who specialize in specific areas,” Wyatt said.

“Sometimes they receive unexpected questions about how different coverages interact or why certain practices have persisted in the marine industry,” he said.

“These interactions lead to valuable insights and continuous learning within our team.”

As technology continues reshaping the insurance landscape, BHSI’s marine team is exploring how to maintain personalized service standards while leveraging technological advances, particularly for complex, unique risks that require bespoke solutions technology alone cannot provide.

For his part, Wyatt counts himself thankful for being in a branch of insurance with a long history that is pivoting to meet the challenges of today.

“My background gives me a unique perspective on this evolution,” Wyatt said.

“I worked in Lloyds’ for ten years before moving to the U.S. six and a half years ago,” he added.

“I’ve always specialized in marine insurance, starting in ocean marine primarily on the cargo side, then expanding into inland marine after moving to America. Now I lead a great team handling both ocean and inland marine underwriting across all product lines.”

To learn more, visit: https://www.bhspecialty.com/.

The information contained herein is for general informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any product or service. Any description set forth herein does not include all policy terms, conditions and exclusions. Not all products and services are available in every jurisdiction, and insurance coverage is governed by actual policy language. Please refer to the actual policy for complete details of coverage and exclusions.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Berkshire Hathaway Specialty Insurance. The editorial staff of Risk & Insurance had no role in its preparation.