Marine Insurance

Boat Repairers Liability Insurance for the Marine Industry

Most brokers specializing in insuring this industry know the many risks and exposures being undertaken by clients performing these types of services. A boat that has been improperly repaired increases the risk of injury or potential accidents while at sea. This type of exposure is not only a concern for his or her customers, but can affect everyone involved in this dynamic industry.

This is why boat repairers liability insurance is so necessary, as it can immediately handle any claims arising from negligence, accidents, or simple mistakes with regards to cleaning, fiberglass repair, marine carpentry, rigging, painting, welding, engine repair, and a host of other marine-related trades.

During the high season, thousands upon thousands are often exposed to conditions where serious injuries can result. The fact is that if anyone becomes injured while on their premises your clients will likely face costly liability issues. With a multitude of concerns related to the marine industry it is any wonder why being properly insured is the most important consideration for boat builders and repairers?

Many potential risks to consider

The average motorized boat has many moving parts and many functions, so any number of things can go wrong. From engine repair, to lighting, HVAC, mechanical systems, sails, and woodwork and carpentry, problems may arise for which your client ought to consider when getting the proper coverage to fit their needs.

Most brokers provide policies that include coverage for other concerns as well, such as marine pollution liability, usually up to the policy’s limit of liability. This coverage is especially important in the marine industry, as it will cover the costs of containment and clean up. Without this particular coverage your client faces civil penalties, criminal fines, and defense costs, along with interest, if found to be at fault.

The primary focus of any boat repairers liability insurance program is to determine where concerns lie, and produce an insurance package designed to meet their specific needs, with the goal being to serve the industry as a whole.

Boat repair liability insurance is not only designed to meet those needs but is essential to have in order to protect their business interests and the company they’ve worked so hard to build and maintain.

Boating Issues and Yacht Club Insurance Brokers

Owners of fleets of water vessels, such as marina operators, boat dealers and yacht clubs, as well as boat builders and yacht brokers must all protect their businesses against common risks associated with activities likely to occur in the water as well as on land. Agents and yacht club insurance brokers need to help those facing a unique set of exposures and find coverage options that best help suit their client’s needs.

Yacht clubs, because of the many activities they sponsor throughout the year, rely on the protection they are afforded by carrying yacht club insurance for the vast array of exposures they have concerns over with regularity. Business is heaviest in the summer months and they should all be focusing on these very important coverage options.

Liability is an essential policy to have in place

Liability coverage is perhaps the most important aspect of any yacht club insurance coverage plan. Liability features that are currently available include coverage for legal defense costs, wreckage removal, water and oil pollution and resulting contamination cleanup, and non-owned (i.e. borrowed) boats that could suffer damage while on the premises.

If the yacht club employs a captain or crew, Jones Act coverage will be needed for times when damages or injuries result from a collision or other hazards occurring. Any act deemed to be caused by negligence by the owner or one of their employees could result in a claim and any legal action that is taken can be quite costly.

This should also include purchasing employer’s liability for full-time and part-time staff, freelance instructors and volunteers. For example, insurance will provide coverage in the event someone accidentally trips or slips while boarding or disembarking a vessel or anyone that claims to have suffered an injury of some sort during their visit.

Perhaps the most significant coverage difference between various policies is whether the loss settlement basis is “agreed value” or “actual cash value.” Replacement cost coverage normally pays for damage (less any deductible), and age depreciation is generally not factored in for most losses. Actual cash value coverage for partial losses may reduce the claim payment based upon depreciation, and the policy deductible will apply.

Before your client purchases any policy from yacht club insurance brokers be sure to speak to them about their coverage options and help them choose a policy plan that provides the needed protection.

Commercial Marine Insurance a Good Idea for Companies on the Move

Long gone are the days when businesses simply sold their wares to members of the local community, and perhaps occasionally to their friends or family members passing through. Thanks in part to the proliferation of the Internet, firms both large and small have the ability to reach their customers whether they are around the corner or across the globe. Of course, getting those goods safely into the hands of the end customer, via one or more middlemen in one’s supply chain along the way, becomes more complex in keeping with the complexity and length of the transport to the final destination of the goods. That is why commercial marine insurance programs are available—to offer business owners protection for the risks of physical damage or loss that they face while their goods are in transit in a ship at sea, while in the air, or on land (via truck or railroad) on the way to their domestic or international destination points. Don’t be fooled by the word marine in the name; generally these policies are intended to provide protection for property on land; the name harkens back to the original policy called ocean marine, which hundreds of years ago was created to cover property transported via voyages at sea.

Where do these losses stem from?

Damage to property in transit can arise from many avenues from the mundane to the unusual, including:

  • Theft
  • Collision
  • Overturning
  • Rough handling
  • Jettison
  • Mis-delivery
  • Non-delivery
  • Natural disasters

Should these or other perils named in the policy happen to your property on the move or while it is in the custody of a bailee (the person who assumes care and control of the shipment on its way to you), the coverage will indemnify you for the loss.

Speak to a professional about it

Talk to your professional insurance agent about the difference between competing commercial marine insurance programs from the various insurers that offer this coverage. Your agent has the experience and knowledge to provide information that will allow you to compare and contrast the features that each company offers and balance them against the premiums to ensure you are getting the most coverage at the best price. Call your agent today to learn more.