The Ins and Outs of Marina Insurance

Marina owners and operators have a lot to manage on a daily basis. There are docks, boat storage, building maintenance, utilities, and facility employees. Not only is it important to keep the property well maintained, but it is also necessary to be mindful of liability hazards like injuries or accidents that occur on-site. Because of this, aside from insuring boats, there are several different types of property insurance and liability policies that are needed.

What Kinds of Damage are Marinas Subject to?

Marinas are continuously susceptible to damage, both from people and the environment. People are constantly coming and going from the facility, and accidents can happen. Saltwater and freshwater can also wreak havoc on the infrastructure over time.

The vulnerabilities in the property come with risks such as:

• Commercial mishaps – Users of the marina may bring their own cars to transport their boat(s). If something were to happen onsite, then the property owner or manager might be responsible for covering the damage. Because of this, there are several commercial policies to secure.
• Owned vessel risks – Like driving on the road, there are risks for riding the waves on a boat. Accidents can occur when boaters are casting off, docking, or just driving around. If the marina has its own boat then owner vessel coverage should be considered.
• Employees risk – Employees working at the marina will need to have insurance
• Pollution – Good marina care comes down to keeping the water clean. Boat waste, trash, and plastics should never be allowed to accumulate.
• Weather – Shorelines are often subject to harsher weather conditions than inland.

What Kind of Insurance is Available?

The aforementioned risks are encountered every day in the operation of a marina. Damage like water cleanup or harm from weather may be manageable, but boat accidents that damage docks or boathouses can be a tough bill to pay on your own. That’s where marina insurance can come in handy. Marina insurance isn’t just one policy but rather a makeup of several. Insurance companies will often refer to this as “Marina Operator’s Legal Liability Insurance” or “MOLL.” MOLL will be the foremost policy when it comes to liability coverage for docks. If someone’s boat were to be damaged while docked in a marina, a MOLL policy would cover it. The main point of MOLL insurance is to provide coverage for the three “Cs” of storing boats in your marina.

What Are The Three “Cs” of Running a Marina?

Every marina owner should be familiar with the care, custody, and control of watercraft in their care -or the three “Cs.” This isn’t just a business practice but a legal responsibility. Make sure MOLL insurance covers what is known as the “CCC clause.”

What Other Marina Policies Should be Added?

In addition to the Marina Operator’s Legal Liability Insurance, there are other insurance policies that will come in handy for protecting your docks.

Other marina policies and the hazards they cover:

• Bumbershoot insurance – This is another fancy word for “marine umbrella policy.” This is especially helpful if an accident occurs and damages are greater than coverage limits.
• Marine cargo insurance – If your marina or boatyard receives shipments regularly, the shipments should be insured should they be lost at sea or damaged in transit.
• Accidental pollution insurance – This would be ideal if pollution were to originate from your marina. For example, if a boat fuel pump ruptures and floods the water with fuel, this insurance would cover the clean-up and replacement effort.
• Worker’s compensation – As previously mentioned,  employees and dock attendants should be covered adequately should they be injured on the job. This is a job for the commercial policy of worker’s compensation.
• Commercial property insurance – Another commercial insurance policy worth investing in is property insurance. While liability damage is covered with MOLL, extend coverage to the docks and boathouse with commercial property coverage.
• Commercial flood insurance – Flood insurance can help a marina prepare for weather damage as water levels are known to rise during coastal storms. This commercial policy covers flooding caused by the said storm.
• Hired vessels insurance – Any damage to a workboat or barge hired for work at a marina would be covered by this commercial policy.
• Business interruption insurance – For whatever reason, if a marina is damaged and can’t operate regularly for a period of time, it will be covered for lost revenue during this temporary closure.

How Much Does it Cost?

It’s difficult to say exactly how much insurance is needed for a marina because it depends on many aspects. A marina with a refueling station or watersports activities will pay higher premiums than a marina that is just used for boat storage. It also depends on the location. A saltwater-based marina may have higher rates because it is prone to hurricanes, and more storm prep may be involved. For the best commercial marina insurance, it helps to get more than one quote since the provider can also be a deciding factor on the cost. Find a provider with plenty of experience helping marina managers and good services to ensure the best coverage.