Marina Insurance Policy Information
Marina Insurance. As a marina owner, you're tasked with a lot of responsibilities. Not only do you have to ensure that the vessels you keep watch over are well-protected, but you also have to ensure that your property is cared for, and of course, that any staff you employ is taken care of.
In other words, marina owners are exposed to a lot of risks.
Marinas, boat yards or boat moorage facilities offer a wide variety of services to both private and commercial boat or yacht owners and their guests. Marinas offer launching slips or dock space rental, some to members only and some to the public. Some offer storage facilities, both wet (in the water) and dry (out of the water).
Vessels stored in dry dock may be kept indoors or outdoors in a yard. Other services may include retail sales of accessories, fuel or supplies, pumping out of the vessel's waste tank (refuse from galley and head), boat rentals, service and repair facilities, dry docks for painting, cleaning, refitting, or winterizing, and restaurants or bars.
There may be a launching slip for customers' use. The marina may have lifts to take boats out of the water. They may offer instruction, boat races and contests, demonstrations and promotions. If the marina does not offer all the services mentioned, these may be contracted elsewhere to meet the needs of their customers.
As the owner and operator of a marina, you are liable for anything that goes wrong. In order to protect yourself from the risk of serious financial losses, you need to invest in the right type of marina insurance coverage.
What kind of insurance do you need? How much should you carry? Read on to find out how to properly protect your AL marina from any mishaps that may be thrown your way.
Marina insurance protects your boat yard and moorage facility from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked accounting insurance questions:
- How Much Does Marina Insurance Cost?
- Why Do Marinas Need Insurance?
- What Type Of Insurance Do Marina Need?
How Much Does Marina Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small marinas ranges from $67 to $89 per month based on location, services offered, revenue, claims history and more.
Why Do Marinas Need Insurance?
Despite trying your best to make sure that everything runs smoothly with your marina, there is always a chance that something could go wrong.
Your entire property could go up in flames, a storm could wipe out your bulkheads and piers, a customer could file a lawsuit against you, claiming that you were responsible for damaging their boat, or an employee could suffer a work-related injury. These are just a few examples of the things that could go wrong.
If something unexpected occurs, you could be looking at some serious financial losses. The cost of medical bills, repairs, property damage, and more could end up costing you a fortune. That's why having the right type of insurance coverage is so important.
As long as you're covered, instead of paying for any mishaps that do occur yourself, your insurance carrier will cover the cost for you. Not only will having the right kind of marina insurance coverage protect you from serious financial losses, but marina owners are also legally required to carry insurance coverage.
If you aren't covered, you could be looking at serious fines and could potentially even end up having your marina shut down.
What Type Of Insurance Do Marina Need?
There are several types of marina insurance coverage that marina owners will need. The specific type of coverage you'll require depends on a variety of factors; where your marina is located, the size of the marina, and the risk for storm damage in your area, for example.
Because insurance requirements may vary, it's best to speak with a reputable insurance agent who has experience insuring marina owners.
To give you an idea of some of the different types of insurance marina owners will need, here's a look at a few examples of the coverages you might need to carry:
- Commercial Property - This type of insurance coverage protects your commercial property, as well as the contents within it from acts of nature, vandalism, and theft. For example, if high winds pulled the roof off of your marina, an explosion occurred, or someone vandalized your building, this type of coverage would help to cover the cost of repairing or replacing any damages.
- Inland Marine - This type of insurance can be considered a "floater" policy, as it protects your property when it isn't on-site. For instance, it will cover your travel lifts, compressors, for lifts, and other gear and tools that you may use in different locations when they aren't on-site of your marina.
- General Liability - Like any other business owner in any other industry, you'll also need to invest in general liability coverage. This type of insurance protects you from third-party personal injury and property damage claims. For example, if a client were to fall off the bulkhead while docking their boat and claim that the accident occurred because you didn't properly maintain the bulkhead, this coverage would protect you. It helps to cover any legal expenses, as well as compensation that you may be required to pay.
- Workers Compensation - If you employ a staff, it's your responsibility to provide them with a safe work environment. If one of your employees were to become injured on the job, workers' comp would help to pay for any medical care that they require, as well cover any wages that they may lose if they were unable to work while recovering.
The above-mentioned policies are just a few examples of the type of marina insurance coverage you should consider for your boat yard.
Marina' 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.
The more land-based the operation, the greater the exposure because once the customer boards a vessel, the premises liability stops and the inland or ocean marine exposure begins. Docks present numerous hazards. Wet or slippery surfaces, inadequate markings, poor maintenance, obstacles left on the dock by the insured or others may result in injuries to customers or guests.
If alcohol is sold on premises, there is a significant liquor liability exposure since alcohol combined with watercraft can be a deadly combination. 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.
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 and pump-out 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 or Maritime exposure if work is done on or near the water.
Property exposure may be limited to a retail store operation or include hazards of boat repair, spray painting and even a full-service restaurant. If painting, welding, fiberglass repair or cooking exposures are done on premises; the exposure to fire will be increased. Cooking surfaces must be properly protected. 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. If welding is a part of the repair and body work operation, it 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. Marinas 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 as the marina 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 are from employee dishonesty and theft of money and securities. 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 catastrophe 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.
Commercial 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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 4493 Marinas
- NAICS CODE: 713930 Marinas
- Suggested ISO General Liability Code(s): 10105, 10107
- Suggested Workers Compensation Code(s): 6836, 6826F
Description for 4493: Marinas
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 44: Water Transportation | Industry Group 449: Services Incidental To Water Transportation
4493 Marinas: Establishments primarily engaged in operating marinas. These establishments rent boat slips and store boats, and generally perform a range of other services including cleaning and incidental boat repair. They frequently sell food, fuel, and fishing supplies, and may sell boats. Establishments primarily engaged in building or repairing boats and ships are classified in Manufacturing, Industry Group 373. Establishments primarily engaged in the operation of charter or party fishing boats or rental of small recreational boats are classified in Services, Industry 7999.
- Boat yards, storage and incidental repair
- Marine basins, operation of
- Yacht basins, operation of
Marina Insurance - The Bottom Line
To find out more about the exact types of marina insurance policies you'll need, how much coverage your boat yard needs - speak with an experienced insurance broker who understands the unique risks of marinas.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
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.