6 February 2024

What to consider when buying marina insurance cover

By Sean McNamara Branch Manager, Worcester
An aerial illustration of five boats docked around an X-shaped wooden pier floating on calm teal water.

We live in a world where the unexpected seems to have become more expected.  Extreme weather patterns are occurring more frequently and criminal gangs are devising ever more devious methods of carrying out malicious actions.

In the complex marina environment, the list of risks to businesses is extensive, making it vital to ensure that your business mitigates the risks faced.  A tailored marine trade insurance policy is a vital part of that, as a safety net in a worst-case scenario situation.

The starting point is to realise that very few businesses are exposed to exactly the same risks and working with a specialist insurance broker to understand your unique situation is always a good idea.  Find a Marine Trade insurance broker who is happy to sit down and review your risks without obligation.  Your business will likely need several separate policies to achieve the optimum protection so a specialist marine broker would be preferable.

It’s relatively easy to think about the physical assets of your business including buildings, pontoons, plant, vehicles and boats but often the biggest risks lurk in areas which aren’t visible.

One of the most important areas for marinas to focus on is liability.  Liabilities come in all shapes and sizes, from valuable property afloat on the pontoons, hoisted up into the dry stack or propped up in the yard, to people walking around the berths and visiting the facilities.  They also include liabilities to your employees going about their day-to-day duties and the all-important protection of everyone’s personal data, so the risk of something going wrong and a claim against you being made mean that it is an area well worth a detailed review.

Subcontractors working on site are worthy of a special mention.  All subcontractors should have their own liability policies for a minimum of £5 million in place, so in the event of a claim their insurance policy will pay, and not yours.  It’s worth checking that the policy is a marine focused one covering the type of work they are undertaking!

Management Liability policies are important to consider, with Directors and Officers Liability one of the few policies that covers the award as well as the defence costs. Employee Protection Liability cover should be top of the agenda in this area.

Cyber-attacks on businesses are an ever-present threat and even though you may consider your business small and at low risk of getting onto a criminal’s radar, it does happen, and the results can be catastrophic.  Cyber policies can help get you back on track and are an increasingly important policy to consider for all businesses.

The peace of mind that comes in having Marine Trade insurance cover which has been tailored for the risks you specifically face, combined with the support of a broker who is a marine specialist means you can keep your mind on running your marina and focus on what you enjoy doing most.

 

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