Hagerty Marine celebrating 25 years in business
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The more things change, the more they stay the same. That is especially true at Hagerty Marine, where the recipe for success hasn’t changed since day one – extraordinary service and a family atmosphere have been at the forefront since 1984.

"It’s strange to say because we’ve grown so much, but it really does feel the same," said company founder Louise Hagerty. "The culture is the same. The feeling is the same.

"This is home. We all like each other and enjoy working together. And I think we project that feeling and make our clients feel like part of the family."

Hagerty Marine Vice President Carla Gernhofer, who has been with Hagerty since the company operated out of the family’s basement, agreed. She said the company-client dynamic hasn’t changed a bit.

"It’s about relationships," Carla said. "We deal with the same people year after year, and they’ve become our friends. I personally know probably 75% of our clients."

"Actually," Louise interjected, "it’s probably more than that."

Joking aside, it has been an adventurous 25-year ride for Hagerty Marine, which kicked off its Silver Anniversary celebration at the Sunnyland Antique Boat Festival in Tavares, Fla., in March. The celebration will continue at the 37th annual Lake Tahoe Concours d’Elegance from June 18-21 and the ACBS Water Wonderland Chapter’s 22nd annual Boats on the Boardwalk on Aug. 1.

While Hagerty Marine’s 25-year run has been an adventurous one, it certainly hasn’t been easy. For instance, the technological advancements that companies now take for granted – things like computers and the internet and cell phones – weren’t a reality in the spring of ’84.

"When we started, I typed policies on a typewriter," Louise said. "When we finally got a computer, (Louise’s son) McKeel and one of his friends programmed it. They were only juniors in high school."

McKeel Hagerty, now CEO of Hagerty Insurance, said the first company computer had only one function.

"We used paper files in those days, and we programmed it to print policies," he said. "The problem was, each policy form had a serial number and (Louise) only gave us one to use as a test – so we had to get it right."

Louise said the creation of the company arose from the family’s love of classic wooden boats and the fact that insuring them was difficult. It took years of planning and paperwork to bring Hagerty Classic Marine Insurance to fruition.

"I knew it had to be national, and to do that we had to be licensed in every state," Louise said. "That took time."

Finally, armed with information about their unique Agreed Value policy, the Hagertys attended the annual Antique & Classic Boat Society (ACBS) meeting in Detroit in June of that year. The idea was an instant success.

"We started the program by putting an answering machine on McKeel’s desk before we left for Detroit," Louise said. "At the meeting they asked us all kinds of questions. Then we went to Florida for another presentation. When we got there, we checked the answering machine and it was filled with messages from people wanting to sign up."

The business grew quickly, and so did the staff. Several of those early hires are still with the company – Carla is one of them.

In addition to hiring talented employees, Hagerty Marine benefitted from the early support of people like Dick Clarke, of Lake Tahoe’s Sierra Boat Company, and insurance underwriter Dominic Pagnorelli. Clarke consistently funneled insurance inquiries toward Hagerty, while Pagnorelli’s business support never wavered.

"We have 38 clients who have been with us since the beginning, and more than half of them are from Lake Tahoe. That’s because of Dick’s help," Louise said. "And the toughest thing at the beginning was to get an underwriting company. We have Dominic to thank for that. He has never left us."

Certainly, the way rates and values are calculated has evolved. But after creating those formulas early on, they haven’t changed a lot.

"We developed our own rate engine," Carla said. "We had to."

"We changed traditional marine underwriting,"added Chris Schmaltz, sales and marketing manager. "We rate an owner’s profile as much as we do the risk. No one else does that."

Louise said the company learned early on that Agreed Value was essential, clients’ input was valuable and sound business practices were a must.

"A values book for boats didn’t exist," she said. "We told people, ‘You know how much time and money you’ve invested.’ We talked it through.

"When we were deciding what to charge for the premiums, we went low. We went with what sounded fair. We could have charged a lot more if we had wanted to be greedy. But if we had been greedy, I don’t think we’d be where we are."

Carla said other factors helped the business grow and run more efficiently – like connecting with the ACBS in the late ’90s and eventually becoming a platinum sponsor in 2004. Chris agreed.

"We’ve been around 25 years and we’ve grown every year. That says a lot," he said.

Carla is already looking ahead to future anniversaries.

"All of us at Hagerty Marine are proud to be celebrating 25 years of dedicated service to the hobby industry," she said. "We look forward to many more years of protecting your classic treasures."

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