Insurance Coverage all Marinas Should Understand
The beginning of insurance is rooted in the marine world. The ships' captains and owners would share risk as they sailed around the world. Many things about Marina insurance have changed, but many have not. Some of the most interesting things that have remained are the terms used to describe the coverage. Understanding and gaining knowledge of these coverage terms is vital to a successful marina insurance program. Below are just a couple of coverage that marina owners should understand when buying marina insurance.
Bumbershoot is an Excess liability insurance coverage, primarily for shipyards and ocean marine risks, provided in much the same manner as standard umbrella or excess liability insurance policy for non-marine risks. The term "bumbershoot" insurance is derived from the British slang term for umbrella. Coverage may be provided as excess layer of liability limit for protection and indemnity insurance (P & I), Longshoremen and Harbor Workers Act Liability , Collision, and Salvage Expenses.
Protection & Indemnity (P&I) is liability insurance for practically all maritime liability associated with the operation of a vessel, other than that covered under a workers compensation policy and under the collision clause in a hull policy.
Marina Operators Legal Liability Coverage insures the liability exposures associated with the operation of a marina including those related to the care, custody, and control (CCC) of watercraft. The coverage includes both marina related land and traditional waterborne exposures located at the marina. A marina operator is responsible for providing vessels that make use of its facilities with a safe harbor. To that end, the marina operator must advise a vessel operator of any hazards or deficiencies associated with the marina or the berth in which the vessel is to moor. When the marina operator fails to do this, the operator becomes liable to the vessel operator for damage that results from the unsafe berth. Policies traditionally cover privately owned pleasure vessels but can be changed to cover commercial vessels docking in the marina.
Hull Coverage is designed to cover the physical damage to owned vessels like work boats or tugs.
Marina Sudden and Accidental Pollution Insurance covers pollution liability related to a sudden accidental pollution event. Most marinas either provide repair or fueling services. Either service offering can create a sudden and accidental pollution event.
Any or all of the previous coverages should be considered in addition to other more traditional coverages like: employee dishonesty, employment practices liability, insurance, commercial auto. If you would like a complete coverage and pricing audit we would be happy to assist you with any complete review of all of your marina insurance needs.