Insurance Considerations for Commercial Marinas

Searching for a Florida commercial marina insurance policy that offers all-inclusive coverage? Your first step is to speak with a marine insurance professional. There’s a common saying in the marine industry that a one-size-fits-all commercial marina policy actually fits no one at all. Reduce your risk by working with an expert who can reveal any and all risks unique to your marina.

You’re likely to encounter many options. If and when you are presented with a marine general liability package policy, make sure to deconstruct it to ensure that the separate protections add up to the full coverage your marina needs. The reality is this: as the operator of a commercial marina, without the right insurance policy you could be held responsible for damage, theft, or injuries that take place on your property.

Commercial marina insurance for loss and injury

If an unfortunate event occurs on marina property, who is liable? As the commercial marina owner, you likely are. This is why it’s so important to hold liability insurance specifically for commercial marina operators.

Vandalism

If vandals should harm the crafts docked at your commercial marina, you may be held responsible.

Theft of property

Who is liable for the theft of a vessel from a commercial marina property? Is it the boat owner who left the key in the ignition, or is it the marina, whose security cameras were powered off at the time? Understand your liability. The Marina Operator Legal Liability coverage only responds if the marina is negligent. Just because the boat is at the marine premises, that doesn’t instantly make the marina liable. It’s always best for the boat owner to have a pleasure policy in place. They can then file a claim on their boat policy and let the insurance company subrogate if the marina is indeed deemed liable.

Pollution

Should a commercial marina be found responsible for polluting local waters, there could be a steep penalty. If your commercial marina is at risk for such an event, address it quickly and effectively.

Storm damage at your marina

The marina can’t force the owner of a vessel to remove their craft when a storm threatens. Additionally, according to Florida law, they can’t hold the vessel owner responsible for damage to the marina docks caused by a storm. That being said, read your marina agreement. Occasionally the verbiage in the contract states otherwise. The owner of the vessel is responsible for taking all reasonable precautions to secure their craft in the event of a major storm, regardless of where it’s moored or stored. The boat owner needs to carry a boat policy with hull and liability coverage along with any ancillary coverages offered. The marina in turn will carry its own coverage to protect their buildings, docks, and other owned property and liability exposures.

Longshore and Harbor Workers’ Act

If your employees are working around or near navigable water, which is nearly all of Florida, be sure your company is in compliance with this Federal Act. Employers who are unfamiliar with this exposure should consult insurance experts to determine if the company is exposed. Department of Labor fines of up to $10,000 per employee coupled with the employer’s personal assets being exposed to jury awards are possible for those who do not comply.

Commercial Marine Employer’s Liability

This coverage is for employees working on non-owned boats who get hurt. It protects the commercial marine employer from getting sued and keeps the employer in compliance with federal laws. The main goal of a commercial marina insurance policy is protection. A commercial marina should offer a safe haven for the boats anchored there. Should a disaster occur, a well-insured commercial marina and its customers will receive just recompense.

Jones Act/Crew Coverage

This coverage is for employees working on owned boats who get hurt. It protects the commercial marine employer from getting sued and keeps the employer in compliance with federal laws.