Marina Insurance

Marinas often need insurance to comply with state laws and contracts, and to get licenses and permits for their business operations.

You'll also need to make sure you're in compliance with maritime laws and standards set by the U.S. Coast Guard, the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), and other federal agencies.

Here are the policies you might need to run your marina:

• Marine general liability (MGL) insurance protects maritime businesses from legal costs related to accidents that happen on or near the water.
• Pollution liability insurance, also called environmental liability insurance, covers cleanup costs in the event of a fuel spill or similar incident. It can help you comply with federal and state environmental regulations.
• Marina operators legal liability (MOLL) insurance is a specialized type of coverage for marinas that covers damage or loss of a customer's boat or its contents.
• Workers' compensation insurance is required in most states as soon as you hire your first employee. It pays for medical treatment if a worker is injured on the job and provides them with disability benefits while they're recovering.
• Commercial auto insurance covers accidents involving business vehicles. Almost every state requires it for vehicles owned by a business.
• Umbrella insurance is often needed for large, high-traffic marinas that operate on publicly owned land. Landlords and lenders may require limits of $5 million or more.

Marinas that operate on public land usually need to name the landowner as an additional insured on their policies. Similarly, many marinas ask to be named as an additional insured on the boat owners' policies as a way to limit their own liability.

Every marina should carry marina operators legal liability insurance, even when it's not required. MOLL insurance helps pay for damage or loss of a customer's boat and its contents.

Items in a business's care, custody, or control—including boats—are excluded from general liability insurance, which is why you need MOLL coverage.

Without this type of boat insurance, your business could face a costly lawsuit if a customer's vessel is damaged at your marina. In fact, your customers may ask to see proof of this coverage before entrusting you with an expensive vessel.

Marina operators liability insurance is especially important if you repair boats, move them, fuel them, or offer any other high-risk services. As part of a strong risk management plan, any business that handles or stores boats should carry this coverage.

Owners of marinas, boatyards, yacht clubs, and other maritime businesses often invest in the following insurance products to protect against unexpected out-of-pocket costs:

• Commercial property insurance covers offices, warehouses, docks, and other property at your primary location in the event of a fire, storm, or burglary.
• Business interruption insurance helps your marina recover from a forced closure due to a fire or other covered property claim. It's also called business income insurance.
• Equipment breakdown insurance protects against financial losses caused by the unexpected failure of a dock winch, boat lift, or other crucial machinery.
• Crime insurance, such as a fidelity bond, provides reimbursement in the event of employee theft or fraud. It's sometimes called employee dishonesty coverage.
• Liquor liability insurance covers legal costs if a customer becomes intoxicated at your marina and goes on to harm someone or damage their property. It's essential if your business sells or serves alcohol.

Some carriers may offer specialty marine insurance packages, or you may need to add marine endorsements to your policies. Our insurance agents can help you find coverage for your unique risks and answer any questions.

A small marina with low risks won't have to pay a lot for insurance. Here are several ways to save money on insurance:

• Shop around. Insurance companies often charge different rates for the same coverage. Fill out our easy online application to compare insurance quotes before buying a policy.
• Choose less expensive coverage options. Policies with lower limits and higher deductibles cost less. Make sure the limits are sufficient to cover a claim, and that you can easily afford to pay the deductible.
• Pay the full annual premium. You can choose between monthly and annual premium payments, with a discount usually offered when you pay the full annual amount.
• Skip optional coverages. The right policy covers your risks, without offering coverage you don't need. For example, you can save money on car insurance by skipping comprehensive coverage, which covers physical damage from falling branches, collisions with deer, and other uncommon incidents.
• Reduce your risks. A focus on workplace safety, such as proper maintenance and reduction of clutter, helps reduce the chance of a costly accident and a subsequent claim that hikes up your premium.

Remember, the cheapest policy isn't necessarily the best choice. An accident could bankrupt your marina without the right insurance protection.