Marina insurance coverage needs to protect owners with a range of specific requirements. There are both land-based and water-based risks, for example. Some marinas, particularly in the northern portion of the country, tend to see seasonal spikes in activity, which results in a different risk profile than those that are operational year-round.
Clients who moor their boats at a marina are trusting the business to keep their vessels safe. However, accidents happen, and weather-related damage is a year-round threat. For that, you need to have the right insurance coverage in place to protect your business.
As a business, marinas have equipment that must be protected, buildings to keep safe and maintain, employees to consider, and more. Thereâs a lot more to think about than simply insuring boats. With these and many other concerns, marina owners need to understand how to adjust for and address a variety of risks.
Marina insurance is designed to protect marina owners from financial losses due to injuries, property damage, or theft that occurs at the marina. This is different than marine insurance, which covers things like ships and cargo, and losses at sea.
Does general liability insurance cover marina accidents?
General liability insurance for marinas is important, basic coverage that protects owners of marinas from injury claims stemming from accidents or property damage that occur on their property.
One of the most common types of accidents at marinas is slip-and-fall type injuries. Docks are wet and can get slippery, and not everyone thinks through their footwear. If someone were to slip and break a bone, general liability insurance coverage would pay for costs associated with medical bills and legal fees.
The mooring of boats carries a risk of damage to propertyâeither to boats or to piers and docks. Property damage is another important coverage included with marina general liability insurance.
Marina insurance usually covers the docks, wharves, piers, and similar physical structures located at a marina. You may need to purchase additional coverage for other potential risks, such as pollution liability, commercial property, and workersâ compensation insurance.
Is there a difference in insurance for marinas on the ocean versus lakes?
Anything that can impact a risk profile for a business can have an impact on insurance coverage. Marinas located on an oceanfront are more likely to be susceptible to hurricanes and storm surges and may see higher premium costs.
Location, client base, and the types of vessels that use a marina can differ widely. A marina that primarily caters to ocean-going yachts will have a different risk profile than sailboats on a lake, or one that sees frequent commercial traffic.
All of these divergent risks will result in different insurance requirements and variations in coverage.
What safety measures should marinas implement?
Those who manage marinas should consider scheduling a visit with a workplace safety expert to develop a comprehensive plan that addresses any existing issues that could lead to injuries.
Posting warning signs that indicate wet surfaces may be slippery, or that there is no swimming allowed in the dock area, are important steps and marina owners should absolutely post these and any other notifications or rules.
However, simply posting signs wonât automatically shield your marina business from potential lawsuits. Businesses have what is known as a âduty of care.â âDuty of careâ is a legal standard that takes different forms depending on circumstance, but at its core, it means that individuals and businesses are expected to act in a manner that wonât cause harm to others.
For example, businesses are expected to keep their premises safe for employees and customers. As a marina, this means that in addition to posting signs, you are expected to put safety measures into regular practice.
- Make sure that your docks, piers, and wharves are in good conditionâmake needed repairs as soon as possible.
- Hazardous materials, such as fuel and other flammable products, should be kept in a safe area.
- Employee safety training should be mandatory.
- Drowning prevention measures are important, and should include employee training and making sure that safety rings are available and prominently displayed.
Creating and maintaining a safety-first culture in the workplace is also importantânot just to prevent injury, but also as a possible legal defense if anything does happen.
What legal protections should marina owners have in place?
Insurance
One of the most important legal protections a marina owner can have in place is to be appropriately insured. Accidents and weather events can and do happen, and having the right coverage is protection against the unknown. Carrying enough liability insurance is an important legal protection.
Marina owners will want to carry Marine Owners Legal Liability (MOLL) insurance. This is special insurance designed to address the specific concerns of owning and operating a marina. Boats are expensive, and a fire or hurricane could quickly result in catastrophic losses.
Contracts
Marina owners should also have well-designed contracts for clients who moor their boats at the marina. Expectations for safe use of the marina should be clearly spelled out, along with any fees, storage terms, and conditions.
Compliance
Another area for potential legal exposure is non-compliance with state and federal rules and regulations. Whether this is part of your marina managerâs job or if you have a dedicated team to ensure compliance will likely depend on the size of the marina. There are many laws, rules, and regulations that can impact a marina, from environmental to employee safety to customs.
Mitigating risks at a marina requires planning, forethought, and careful execution. The first step is assessing where risks exist, and then determining how to best address them. Sometimes, remediation is within your controlâsuch as making repairs promptly, or ensuring staff is well-trained. Other risks are outside of your control, like weather damage or irresponsible and thoughtless behavior of clients. For those, you do what you can to reduce the potential damage and make sure the marinaâs rules and expectations are clear to clients.
If you have questions about how to reduce your marinaâs risks and make sure you have the right commercial insurance to protect your business, contact the experts at Rate Insurance.
Disclaimer:
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Rate Insurance does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Rate Insurance. Rate Insurance, its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
