15 July 2026

Canal blockages: are you covered?

A man with gray hair and glasses wearing a white shirt stands outdoors with a marina in the background.
By Mike Jeffery Underwriting Manager
An excavator digs soil near water, with barriers in place, supporting safe practices under marine trade policy.

A guide to business interruption insurance and breach of canal extensions

When it comes to canal blockages, most of us immediately think of a rather large containership firmly wedged into the bank of the Suez Canal with comparatively tiny excavators attempting to dig it free!  However, despite the differences in scale, when it comes to protection and indemnity (P&I) and business interruption (BI) insurance, comparisons can be drawn to canal blockages on the UK canal network.

Canal blockages and breaches can cause major disruption to your business whether you own a marina, a boatyard, a hire fleet, or a premises dependent on inland waterways access.  It can mean your business is impacted and it could affect your income.  Think about what you would do if the canal/inland waterway you rely on were breached?  How would you cope with the loss of income?  Would you lose mooring fee income?  Repair works?  Hire fleet cancellation of bookings?

There is a way to protect against this loss by purchasing business interruption insurance and requesting a breach of canal extension.  It will cover you for consequence of accidental loss, destruction or damage to canals and other inland waterways property which hinders or prevents access to your operating premises.

When requesting cover please be aware insurers provide different protection levels.  Some will restrict the length for which an extension is active, set indemnity limits and/or radius limits of where the breach is located from your premises.  When choosing to have this cover please make sure you review the conditions of the extension, as each business has different protection requirements and when there is a loss you want to ensure that the risks you potentially face are covered.

It is worth contacting a marine focused insurance broker with FCA approval to provide full advice and guidance, like ourselves at HKJ Commercial, to help you make the right decision for your business insurance requirements, using our experience and marketplace knowledge.

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01905 930 760
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