Operating in the marina industry requires a specialized approach to insurance, as marinas face unique risk exposures due to the nature of their operations. Between the liabilities of storing and servicing boats, weather-related risks, and the high value of assets under care, carrying the right insurance is crucial for financial protection and business continuity. Here’s a guide to the most essential insurance coverages that marina owners should consider to safeguard their operations.
1. General Liability Insurance
General Liability Insurance protects marina owners against claims for bodily injury or property damage that occur on their premises. This coverage is vital for marinas, where the risk of slip-and-fall accidents, collisions with docks, and other potential incidents is high. For example, if a customer were to slip on a wet dock or if another boat damages property on marina grounds, general liability would help cover legal fees, medical expenses, and settlements.
Why it’s important: This type of insurance provides a foundational layer of protection against the common risks associated with high-traffic waterfront properties, making it one of the most critical coverages for marinas.
2. Marina Operators Legal Liability (MOLL)
Marina Operators Legal Liability (MOLL) insurance specifically covers the liability associated with operating a marina and provides protection against claims resulting from damage to boats under the marina’s care, custody, or control. This is essential for marinas that offer storage, repair, or maintenance services. MOLL can cover costs if a boat is damaged due to a fire, storm, or collision while being stored or serviced on marina property.
Why it’s important: With the significant value of vessels under a marina’s care, MOLL ensures protection from costly damage claims, helping businesses avoid severe financial losses.
3. Pollution Liability Insurance
Environmental risks are especially pronounced for marinas, as fuel, oil, and other hazardous materials are often present on-site. Pollution Liability Insurance covers the costs associated with accidental pollution, such as fuel spills or hazardous material leaks. This policy is crucial for covering cleanup costs, legal fees, and potential fines from regulatory agencies in the event of a spill.
Why it’s important: Since environmental contamination can lead to hefty fines and cleanup costs, pollution liability is critical for marina operators to stay compliant with environmental regulations and protect natural resources.
4. Commercial Property Insurance
Marinas typically own and operate a range of physical assets, from docks and storage facilities to maintenance shops and offices. Commercial Property Insurance provides protection for buildings, docks, and equipment against damage from fire, storms, theft, and vandalism. With marinas being in waterfront locations, they are particularly susceptible to damage from severe weather events, making this coverage essential.
Why it’s important: The high replacement cost of infrastructure and equipment makes Commercial Property Insurance indispensable for protecting marina assets.
5. Commercial Auto Insurance
For marinas that operate vehicles, such as those used for transporting boats or maintenance purposes, Commercial Auto Insurance is necessary. This insurance covers liability and damages associated with accidents involving company-owned vehicles and can extend to rented or leased vehicles used for marina operations.
Why it’s important: Whether for transporting customers or hauling boats, commercial auto insurance covers liabilities specific to the business operations of marinas.
6. Workers’ Compensation Insurance
In many states, Workers’ Compensation Insurance is required if a business has employees. This coverage provides benefits for employees who suffer work-related injuries or illnesses. For marina employees engaged in potentially hazardous activities, such as boat maintenance and docking, this insurance covers medical expenses, rehabilitation costs, and lost wages.
Why it’s important: Protecting employees with Workers’ Compensation not only meets legal requirements but also supports employee welfare, reducing potential liabilities associated with workplace injuries.
7. Inland Marine Insurance
Despite its name, Inland Marine Insurance is crucial for marinas that transport or store customer property, especially boats, outside their premises. This policy covers goods in transit or those stored temporarily off-site. For example, if a marina stores boats for winterization or transports vessels for customers, Inland Marine Insurance helps protect these assets in the event of an accident.
Why it’s important: Inland Marine Insurance provides an added layer of protection for assets during transport or storage, filling gaps not covered by traditional property insurance.
8. Business Interruption Insurance
For any business that depends heavily on continuous operations, such as a marina, Business Interruption Insurance can provide critical financial support during times of unforeseen disruption. For example, if a storm or fire damages marina property and operations are suspended, this insurance covers lost revenue and ongoing expenses, helping the business stay afloat while repairs are made.
Why it’s important: Business Interruption Insurance helps marina owners maintain financial stability in the face of temporary setbacks, preserving cash flow and employee salaries during recovery periods.
Conclusion
The unique risks associated with marina operations—from environmental exposures to high-value assets under care—make tailored insurance coverage a vital component of marina risk management. Comprehensive protection through coverages like Marina Operators Legal Liability, Pollution Liability, and Business Interruption Insurance can shield marina owners from costly claims, regulatory fines, and financial hardships. By working with an insurance provider experienced in the marina industry, business owners can ensure they’re fully protected against the diverse risks they face in their daily operations.
Sources
- “Marina Insurance Coverages,” International Marine Insurance Services. https://imis.protectyachts.com/
- “The Importance of Marina Operators Legal Liability Insurance,” Maritime Insurance International. https://maritimeinsuranceinternational.com/
- “Risk Management Guide for Marina Operators,” Environmental Protection Agency. https://www.epa.gov/
- “Managing Risk for Waterfront Businesses,” Risk & Insurance. https://riskandinsurance.com/