Montana Boat Repair And Dry Dock Insurance Policy Information
Montana Boat Repair And Dry Dock Insurance. Dry docks are specialized facilities that are designed to have the ability to be filled with water, allowing boats to enter, as well as be drained.
Boat repair and dry dock operators provide service to both private and commercial boat or yacht owners. Some offer storage facilities, either wet (in the water) or dry (out of the water). Vessels stored in dry dock may be kept indoors or outdoors in a yard.
Other services may include a marina, retail sales of accessories or supplies, painting, cleaning, refitting, or winterizing. There may be a launching slip for customers' use. The operator may travel off-premises to pick up or return larger vessels for storage or repair.
Seasonal fluctuation of jobs and labor is common, and some work may be subcontracted.
Dry docks may be used to perform regular maintenance on boats - removing corrosion and barnacles and performing a fresh paint job, for example. These facilities can also host boats as more extensive repairs are carried out, as well as during their construction.
Dry docks and boat repair companies play an essential role in prolonging the lifespan of diverse watercraft, whether privately or commercially owned, and keeping them seaworthy. While dry docks and boat repair ventures can be very successful, these commercial ventures also face a multitude of risks.
Each has the potential to bring the business down, and for that reason, it is imperative for these companies to take a series of proactive steps to protect their financial health.
What role does insurance play in this, and what types of Montana boat repair and dry dock insurance coverage might be needed? Read on for further information.
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Why Do MT Boat Repair And Dry Docks Need Insurance?
Dry docks and boat repair facilities face many of the same risks that will be familiar to most business owners, while additionally taking on industry-specific hazards that are partly related to the fact that during a boat repair, expensive third party property will be in their custody.
Dry docks and boat repair facilities may be affected by acts of nature such as floods, serious storms, and hurricanes, which have the potential to lead to extensive damage as well as prolonged business interruptions.
Theft, vandalism, and accidents caused by human error are three further examples of perils that threaten your physical assets, but valuable equipment you rely on to carry out your boat repair services may also malfunction and break down.
In addition, the fact that dry docks and boat repair companies may be sued for a variety of reasons poses a very real risk. Even if a claim is ultimately dismissed, litigation can not only be frustrating and time-consuming, but also extremely expensive.
A client may file a lawsuit if your company accidentally damages their boat, or believes that you made an error in carrying out your repair work. Dry docks and boat repair companies may also face lawsuits if they inadvertently cause damage to a neighboring business, or if an employee is injured at work.
By investing in a comprehensive Montana boat repair and dry dock insurance plan, you ensure that you will not have to face the exorbitant costs associated with these and other perils alone - thereby allowing your facility to recover and thrive once again.
What Type Of Insurance Do Montana Boat Repair And Dry Docks Need?
The exact nature of the insurance coverage a dry dock and boat repair facility should carry depends on numerous factors. The jurisdiction in which your business is based, the type and value of your equipment, the kind of watercraft you maintain and repair, and your number of employees all influence your insurance needs.
Because the process of obtaining adequate coverage can be challenging, dry docks and boat repair facilities should carry out an in-depth evaluation together with a skilled commercial insurance broker. With that in mind, the following types of Montana boat repair and dry dock insurance are crucial:
- Commercial Property - This type of insurance covers your commercial facility as well as many of the contents, with some exceptions, in case your business is struck by perils that include acts of nature, theft, and vandalism. With additional business interruption insurance, you can likewise recover a portion of the revenue you lose to these perils.
- General Liability - Designed to help you cover your legal expenses, which include but are not limited to attorney fees and settlement costs, this form of Montana boat repair and dry dock insurance coverage is essential for almost any business, as it is never possible to anticipate when you may face a third party property damage or personal injury claim.
- Bailee's Insurance - A bailee is any business that temporarily takes custody of client or customer property, such as a boat over the course of repair works. Because commercial property insurance does not protect this third party property, bailee's insurance is another crucial form of coverage.
- Workers Compensation - Should one of your employees sustain an occupational illness or injury, workers' comp will cover both their medical expenses and any lost wages.
Because businesses in this industry may have numerous additional insurance needs, be it in the form of commercial auto insurance, equipment breakdown insurance, or inland marine insurance, it is vital to consult a commercial insurance broker who will help you craft a customized Montana boat repair and dry dock insurance plan.
MT Boat Repair And Dry Dock's Risks & Exposures
Premises liability exposure is high due to waterfront facilities and the public access to the premises. Tripping and slip and fall hazards are common. Waiting areas should be provided for customers whose vessels are being repaired. Customers should not be permitted access to the service area.
The moving, rearranging and hooking up of owned and non-owned watercraft pose a collision hazard to persons or to property of others. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. If the premises are open after dark, adequate lighting and appropriate security for the area must be present.
Watercraft stored outside may pose an attractive nuisance to children and teens, especially during the off season. Chains and fences should be in place to prevent entrance to the premises after hours. Repair operations are the major products/completed operations exposures.
There should be a check-off procedure in place prior to release of the watercraft to the customer to prevent its return with any vital functions not working properly.
General liability policies exclude most watercraft exposures. If boats can be taken onto the water for test drives by employees or customers following repairs, a watercraft or ocean marine protection and indemnity coverage will be needed.
Environmental impairment exposure can be significant due to the storage of gasoline and other flammable liquids in tanks and the disposal of used oils, solvents and other hazardous wastes from repair operations. All above-ground and underground tanks are subject to state or federal regulations and should be routinely tested for leakage.
Adequate procedures should be in place and must be followed to prevent any leakage or contamination. Fuel pumps that are available to the public pose an exposure due to the possibility of spillage into waterways. Contracts should be in place to dispose of all environmentally dangerous chemicals.
Workers compensation exposures are most significant in the repair operation and any transport. Back injuries, hernias, strains and sprains can result from lifting. Repair may involve painting, welding, or work with fiberglass hulls. Safety equipment should be provided. Casual and seasonal labor can impact the ability to control hazards. Turnover may be high.
If large boats are repaired there may be work at heights. Refueling should be done only in well-ventilated areas to minimize inhaling of fumes. Information regarding chemicals should be available to employees along with early warning signs of problems. The transporting of boats from storage to the water may involve cranes, lifts, winches or other heavy equipment, including rails.
There may be Longshore & Harborworkers Compensation Act exposure if work is done on or near the water.
Property exposure comes from the flammable paints, lubricants, oils, degreasers, and solvents used in service and repair operations and the combustibility of watercraft. Flammables must be properly labeled, stored and separated. Spray painting should be conducted in spray booths with good ventilation, UL-approved wiring and fixtures and adequate controls.
Welding is often a part of the repair and body work operation that needs to be evaluated for proper handling of the tanks and gases and adequate separation from other operations with either a separate room or flash/welding curtains. Good housekeeping is critical. Oily rags must be kept in covered metal containers. Work areas must be cleaned regularly and trash removed from the building. Lubricants and fuels should be drained from any watercraft stored during the off-season to reduce the potential for a fire.
Boat repair facilities are often at a distance from fire stations, and access may be difficult due to natural obstructions or poor road quality. Although located near water, lack of equipment, procedures or training may result in a severe fire loss. Wind, wind-driven water and hurricane damage pose catastrophe potential, especially if the operation is close to the water.
Theft is a concern as watercraft can be target items. Appropriate security controls must be taken including physical barriers such as chains, fences, or gates, lighting to deter access to the premises after hours, and an alarm system that reports directly to a central station or the police department.
Crime exposures come from employee dishonesty, theft of money and securities, burglary and robbery. Employee dishonesty is controlled through background checks, inventory monitoring, control of the cash register, and division of duties. Physical audits should be conducted at least annually. Storage and handling of keys presents an often overlooked exposure to theft.
Inland marine exposures come from accounts receivable if the operation offers credit; bailees customers for watercraft in for service, repair or storage; computers used to monitor inventory; goods in transit if the operation delivers watercraft to customers; and valuable papers and records for manufacturers' and customers' records.
Contractors' equipment may include marine railways, hoists and other marine equipment used to move boats in and out of the water, equipment used for lifting and transporting vessels and to maintain the premises. Particular concern should be shown for any item that is used near or in the water. Watercraft stored in the open are particularly susceptible to damage by vandalism and theft.
Lots should be well lighted with chains, fences or gates to prevent access and transport. An alarm system that reports directly to a central station or the police department should be used. Security guards may be appropriate in some areas. The operator may own one or more boats. There may also be a rental boat exposure.
Ocean marine exposure includes the dock and any owned vessels. Piers and docks may be susceptible to weather perils as well as damage from vessels. Hoisting exposures seaside may be similar to those under inland marine, but the loss potential is often significantly increased due to the higher value of ocean-going watercraft and the unpredictability of the ocean.
The insured may own one or more boats or other watercraft that are for personal use and/or rental. Ocean marine includes the liability exposures (as protection and indemnity coverage) so any rental operation can add a significant exposure.
Business auto exposure may be limited to hired and non-owned for employees running errands to pick up parts for repair operations. All employee drivers should have appropriate licenses with their MVRs regularly checked. All vehicles must be regularly maintained with records retained. There should be written procedures for personal and permissive use of vehicles furnished to employees.
If the dealership offers pickup and delivery of watercraft to its customers, the exposure increases. Transportation hazards include failure to secure the load properly, and equipment failure, especially tie-downs and hitches. Drivers must be trained to transport oversized loads that can shift on the road. Random drug and alcohol testing should be conducted.
Montana Boat Repair And Dry Dock Insurance - The Bottom Line
To discover the types of Montana boat repair and dry dock insurance policies you'll need, how much coverage you should carry and the cost - consult with a reputable broker that is experienced in commercial insurance.
Montana Economic Data, Regulations And Limits On Commercial Insurance
Thinking about starting a new business? Already own a successful business and want to expand your operations? Whatever the case may be, if you want to experience as much success as possible, you are going to want to ensure you choose the best possible location for your specific industry.
No matter how outstanding your goods and services may be, if the area where your business is located doesn't offer a healthy climate that will support your company, chances are you'll struggle to succeed.
If you are thinking about opening up a business in Montana, being familiar with the state's economic trends can help you determine if it's a good location for you. It's also wise to know what type of insurance you'll need to invest in so that you can plan ahead.
With that said, below, we provide an overview of the economic trends in the state of Montana, as well as the commercial insurance requirements for business owners in the Treasure State.
Economic Trends For Business Owners In Montana
As of December, 2019, the Bureau of Labor Statistics reported that the unemployment rate in the state of Montana was 3.4%; that's 0.1% lower than the national average, which was 3.5% at the same time. This rate remained steady throughout the entire 2019 fiscal year, and it is expected to either continue remaining steady or improve in coming years, according to economists.
Unemployment rate is a vital statistic for business owners, as it indicates the job market of a location, which is a strong determining factor in the success of businesses in the region.
There are several areas throughout the state of Montana that are seeing economic booms and where businesses are flourishing. Among those locations include the following cities and the areas that surround them:
- Great Falls
Several industries are seeing substantial growth in MT; however, there are particular sectors that are really thriving in Montana. Among those sectors include:
- Advanced manufacturing
- Hospitality and tourism
- Information technology
- Oil and gas production
- Retail development
If you are considering opening a business in any of the above-mentioned areas, your chances of success in Montana are favorable.
Commercial Insurance Requirements In Montana
The Office of the Montana State Auditor, Commissioner of Securities and Insurance regulates insurance in MT. Montana mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Montana requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Montana also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Marine, Boat And Watercraft Insurance
Learn about marine, boat and watercraft insurance - a specialized form insurance that provides coverage for hull losses, cargo losses as well as liability for passenger injuries, environmental damage, and third-party damage caused by watercraft accidents.
- Insurance Nautical Terms Glossary
- Boat Dealers
- Boat Repair & Dry Docks
- Dock & Pier Contractors
- Dredging Contractors
- Ocean Marine
- Boat & Watercraft Insurance
Marine insurance covers everything from loss of cargo to damage to the vessel, terminals, etc. Cargo ships are provided protection against potential losses, especially in transit, which is ideally suited to shipping companies and couriers who want to ensure that they are protected while transporting goods.
Businesses in the shipping industry and those who own private yachts/boats understand that it is nearly impossible to control natural occurrences despite the current safety regulations and laws. Factors like encounters with pirates, weather hazards, conflicts are all too common and can result in damages that cause ship owners to incur lots of damages.
A marine insurance policy can ensure that ship, boat, and yacht owners' interests are protected, offering financial coverage to ensure that they are protected against potential losses.
The other excellent feature of current marine insurance policies is that they can be customized to specific trades, which means that they can cater to varying coverage requirements. The policies can offer coverage based on the size of the ship and the routes being taken.
Types Of Marine Insurance
As mentioned earlier, marine insurance is a broad term that applies to a large group of coverages and is meant to offer protection against damages and losses. Generally, you'll run into three common marine insurance types that provide varying protections.
Hull Insurance - When your ship, boat, or yacht has hull insurance, it is protected from all physical damages along with machinery and equipment. The policy covers all water vessels but is limited to primary commercial ocean vessels. That's why this isn't the best policy for vessels like floating equipment, tugboats, barges and oil rights, or any other type of vessel which does not have commercial intent, so to speak.
Cargo Insurance - Again, this marine insurance coverage is for physical damage to the cargo a commercial vessel may be carrying. However, the coverage and the conditions may vary; for instance, there are policies that offer theft protection, and then there are others that cover other forms of losses apart from physical damage.
Marine Liability Insurance - Now this policy is often referred to as P&I or also protection and indemnity. The coverage offers protection from third-party liabilities that owners and businesses may be exposed to during operations. It also includes coverage for illnesses and injuries while also covering loss of life when the vessel is operational. If there are medical expenditures, damage to the vessels, collision incidents, then; as a result, the quarantine is also covered.
Finally, the premium for marine insurance is mainly based on a couple of factors like the type of vessel, age of the vessel, trading and tonnage, management and ownership, and valuation of the ship, amongst various other factors.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Bailees Customers, Computers, Contractors' Equipment, Mobile Equipment, Valuable Papers and Records, Ocean Marine – Hull, Ocean Marine – Protection and Indemnity, General Liability, Employee Benefits Liability, Environmental Impairment, Umbrella, Hired and Non-Owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Burglary, Computer Fraud, Forgery, Robbery, Goods in Transit, Signs, Ocean Marine - Hull, Cyber Liability, Employment-related Practices, Liquor Liability, Ocean Marine - Protection and Indemnity, Business Automobile Liability and Physical Damage, Longshore and Harborworkers Compensation Act and Stop Gap Liability.
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