Marina Insurance

Marinas need several forms of insurance to cover the many different exposures they face. The first policy to be issued is the Commercial Package Policy, which can provide several different types of coverage in one policy. The first coverage found in this policy is the traditional commercial property policy (fire and hazard coverage). This part can cover the building, contents and loss of business income from the customary losses (fire, wind, explosion, vandalism, etc.). It can also include an inland marine floater to cover mobile property such as travel lifts, fork lifts, compressors and portable tools to name a few. The next coverage part is the general liability part. Like most general liability policies this coverage is very broad, but still cannot protect the marina from all of the different types of liability to the public, customers and visitors that are found at normal marina operations. Another form of coverage available under the Package policy is employee dishonesty coverage to protect the owner from the loss of property or money if an employee steels from them. Some insurance companies bundle a series of additional coverages and offer them in one endorsement and charge a flat fee rather than price each coverage individually. These enhancement endorsements can include: fine arts, outdoor property, computers, personal property of others, coverage for cash, mobile equipment, property in transit, sewer back-up, spoilage, lock replacement and a variety of other losses. They are usually inexpensive. If the building has boilers a separate form of coverage is needed to cover damage caused to the building as a result of an explosion from the build up of pressure. Also any building with expensive or unusual machinery can purchase separate coverage called Boiler and Machinery Insurance, as the standard property policy does not do a good job protecting this type of equipment or business interruption that results from the loss of this equipment.

Anderson Insurance Agency has been insuring marinas and mobile marine mechanics for almost 40 years. We represent some of the most respected insurance companies in the marine insurance field. Click here to request a quote or click here to contact us.

Separate coverage is needed for:

Owned boats or barges, used as work or tow vessels. Liability coverage can be secured under the general liability policy or under a true marine form called "Protection and Indemnity". It is possible that the club would have exposures under the Jones Act (a Federal law that mandates coverage to pay for injuries to the Master and Crew of a vessel) for employees that are considered Master or Crew of an owned vessel. The Protection and Indemnity policy provides broader coverage than the general liability policy and can be endorsed to include the Jones Act coverage. Hull insurance can also be purchased.

If the marina ever uses borrowed, hired or non-owned vessels or barges, the marina needs liability insurance and physical damage coverage, depending on the arrangement with the vessel owner.

Most marinas have docks with slips available to customers. This presents a special exposure to the marina owner or operator. The marina has a duty and responsibility to provide a safe and secure mooring. This exposure is covered by a marina operators legal liability policy and covers boats and marine items of others that you are working on or is in your care, custody, or control. This also includes fueling operations.

Coverage is also available to protect the docks, piers, pilings and bulkheads from loss or damage such as fire, wind, wave wash and ice.

If the marina hires employees they need to purchase workers compensation insurance to comply with the state laws. It is important to remember that casual employees are eligible for workers compensation benefits just like any other employee. If a marina provides any services to vessels greater than 65' in length, they may need to secure Long Shoremen and Harbor Workers compensation coverage. In addition to the statutory obligation to provide medical coverage and lost wages, employers are exposed to actions from employees that are outside of the workers compensation laws, such as failure to hire, wrongful termination, harassment and failure to promote. Coverage to protect the marina operator from these types of losses can be purchased through an employment practices liability insurance policy.

Most marinas have commercial automobiles and trailers that are used to move boats, pick up supplies, etc. A commercial automobile policy is the only way to provide this coverage. Policies can be written to include liability, comprehensive, collision, uninsured & underinsured motorist, and medical payments coverage. The marina should also purchase coverage for non-owned or borrowed autos (vehicles used when anyone, usually employees, uses their vehicle on marina business). If the marina leases or hires automobiles they need additional liability and physical damage coverage to protect them from losses arising out of the use of these automobiles.

Most marinas are located on the water. Since the standard property policy does not include coverage for damage caused by floods, buildings located in any flood area should be covered by flood insurance. A flood policy only provides coverage to the building and the contents inside. It will not cover boats, docks, bulkheads, landscaping or any property outside of the foundation walls of the insured building. While the policy issued may come from a standard insurance company, the actual rules, rates and claims, are the function of the government. The government limits the amount of coverage available for any one building and its contents. Excess limits are available from specialty insurance companies.

Any marina that wants to secure higher limits of insurance (usually more than $1,000,000) should consider purchasing an umbrella liability policy or the broader Bumbershoot liability policy. This is the most cost effective way to secure higher limits of liability insurance. These policies have a slightly broader insuring agreement and offer broader protection against lawsuits.

Employers should consider purchasing employment practices liability insurance to cover them for suits from employees alleging wrongful termination, sexual harassment, failure to hire, failure to promote, non-compliance with the Americans with Disabilities Act, and other similar employment actions.

If you offer any benefit pans to your employees you should consider purchasing employee benefits liability insurance.

You may have an exposure to pollution. This exposure can only be assessed after a careful review of your operations. In many cases, coverage will not be available for this risk. The only option may be to implement a program to minimize the risk as you cannot completely avoid the risk and run a business. Liability coverage is readily available for underground and above ground storage tanks. Site pollution insurance may be available depending on your operations and exposures.

This outline is offered as a general description of the kinds of insurance that can be included in an insurance program. It is not intended to replace a comprehensive and personalized insurance recommendation, which can only be offered after a thorough analysis of particular individuals or businesses operations.