Hall with wooden boats burns down

The Eureka moment, as his son Daniel describes it, for his father was caused by a dramatic accident in the 1960s: a warehouse on the Elbe River burned down – and many of his sailing friends’ wooden boats were lost in the fire. The regulation became problematic, because the insurance companies recognised only a fraction of the value of the often 40 years and older yachts.

Thus Harald Baum developed the principle of the ’Feste Taxe’, the Agreed Fixed Value: Insured yachts should always receive full protection in case of total loss, regardless of age. He developed an insurance policy for which he received the backing of the insurance partners of Pantaenius – an impressive proof of confidence in view of his limited experience and young years at that time.

A family affair (from left): Undine, son Martin, Harald and Tochter Anna Baum © Toni Momtschew

A thousand contracts in the first year

At a tiny booth, as Daniel Baum described it, the insurance salesman and his wife Undine presented the new product at the first Hanseboot boat show in 1969. And it was a success: After just one year he had signed a thousand contracts, and in the following year it was 5,000. The market only seemed to have been waiting for Pantaenius.

And Baum constantly developed his yacht insurance further with the requirements of the growing sailor scene: He introduced the idea that in the event of loss through fire while still in port, the deductible would not be invoked because the policyholder is usually not responsible for these damages.

Small boats are also welcome

The personal equipment of skipper and crew is also included in the insurance cover. As a further step to improve the product, Pantaenius took globalisation long before others: Its insurance cover soon also covered damage abroad – ideal for cruising and regatta sailors.

Another success factor: “Harald also insured small boats,” says Daniel Baum. At a time when many maritime insurers were only interested in four-digit premiums, the young businessman even took out policies for dinghies.

Daniel, Martin, Harald and Anna Baum © Pantaenius

The Picasso on the superyacht

Milestone after milestone followed: Subsidiaries were founded, products were expanded, and with the Marine Claim Service, an own investigation unit for the detection of insurance fraud was created. Meanwhile the name Pantaenius stands for a worldwide company that offers a complete product portfolio from liability to charter insurance – with 400 permanent employees and a worldwide network.

From mast breakage to collision, every mishap is covered. Is there anything that Pantaenius would not insure? Daniel Baum laughs. “It must have a chance of a long-term duration,” says Harald Baum’s son. His experience helps the company in the valuation. Everything is insured – from the Open 60 to the Picasso on board a superyacht.

Harald Baum on the Atlantic Ocean © Pantaenius

Testing in a hurricane

The test for Pantaenius was Hurricane Irma in 2017, one of the most severe so far. The hurricane swept along the Antillean Arc from east to west as far as Cuba and then headed for Florida. In the course of the hurricane, 12,000 boats were destroyed in addition to infrastructure and buildings. The company formed several emergency teams, which estimated damage on the spot and were directed from Hamburg.

The most serious individual loss, which Pantaenius had to regulate, occurred in the Mediterranean: in 1999 the superyacht Airwaves, built by Abeking & Rasmussen, burned off Barcelona.