5 March 2024

Marine Trade insurance - avoiding common pitfalls

By Paul Knox-Johnston Sales & Marketing Manager
Two people in orange outfits working on a white boat docked in a marina. One is on a ladder, the other on the deck.

It goes without saying that making sure your insurance cover accurately reflects your business needs is critical. To help you avoid a costly oversight, we’ve put together a list of things to lookout for:

Employers Liability insurance

This insurance provides cover to the employer in respect of claims made against them by their employees as a result of injury in the workplace, or if they contract a disease when in the working environment. It can be a legal requirement for businesses with multiple Directors, Limited Companies who have one or more people on the payroll, and those employing contractors, labourers and volunteers who perform their role under guidance. Failing to maintain this coverage can result in fines of up to £2,500 per day.

Estimating sums insured

Whether it’s buildings, stock, contents, or plant, inaccurate estimations can leave a business underinsured in the event of a loss. Regularly obtaining rebuild valuations and maintaining a stock, contents and plant inventory can prevent financial setbacks in the event of a claim.

Business risks

Failure to assess your specific business risks can create gaps in coverage. Each business in the marine trade is unique, and tailoring the insurance policy accordingly is vital. A thorough understanding of your business’s risks ensures comprehensive protection.

Updating your cover

Businesses evolve, and so do their risks. Failing to update your policy annually to reflect these changes can result in outdated coverage. Staying proactive and adapting your insurance to your business’s current state is a key aspect of risk management.

Geographic scope of the policy

Business insurance often comes with geographical working restrictions. If you are planning on conducting business off site or overseas, it is recommended to check that your policy will offer adequate coverage, or consider adding business travel insurance. Overlooking this aspect may expose your business and employees to unforeseen risks and costs.

Choosing the most appropriate policy

Not all policies are equal! When comparing policies, it’s important to not only consider cost but also coverage levels, ongoing administration fees, excesses, and the insurer’s reputation for service when you need help. Sometimes, investing a bit more at the outset ensures comprehensive protection and peace of mind throughout the year.

As with all insurance policies, the importance of thoroughly reading the small print, including any policy endorsements and exclusions, cannot be overstated, as failure to do so could result in a claim not being paid.

 

Find out more about our types of policy cover

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