From Floating Markets to Festivals: What Marinas Need To Know About Event Liability Coverage

Marina operators are increasingly turning to special events as a way to boost revenue and strengthen community ties. Small wonder; they’re a hoot. From floating markets to live concerts, seafood festivals, and seasonal boat shows, these gatherings bring excitement and visibility to waterfront properties. But sometimes, there’s more excitement than a marina operator bargains for – and that’s what marina insurance is all about.

You know that, but your marina clients may not.

The Rising Popularity of Marina Events

Marinas are no longer just places to dock boats. They’re evolving into vibrant community hubs. Floating markets, which originated in Southeast Asia, are gaining traction in waterfront communities as creative alternatives to traditional farmers’ markets. 

Vendors sell goods from boats or dockside stalls, creating an immersive experience that draws crowds and can be a marketing bonanza for a marina. Marinas are also hosting boat shows, outdoor concerts, and food festivals. 

However, with increased foot traffic and activity comes increased risk.

Liability Risks To Consider

Industry standards typically require marina operators to carry general liability coverage ranging from $1 million to $2 million per occurrence, with aggregate limits of $2 million to $4 million. But if special events and eco-tourism are a significant part of your business strategy, these baseline figures may be woefully insufficient.

Special events at marinas introduce several layers of liability exposure that go beyond day-to-day operations. All these factors can substantially influence the cost of marina insurance.

• Increased foot traffic. When hundreds of visitors gather on docks, walkways, and floating platforms, there’s always the potential for slip-and-fall accidents and bodily injury claims.
• Property damage. Marina infrastructure is at risk, including docks, piers, and electrical systems. Vendor equipment, decorations, or temporary structures could collide with vessels or cause damage to private boats moored at the facility.
• Food service. Marinas face additional liability concerns related to food handling and potential foodborne illness claims. If alcohol is served or sold, even if served by a third-party vendor, an intoxicated guest who injures themselves or others can expose the marina to substantial liability.
• Environmental impacts. Large gatherings increase the risk of fuel spills, sewage discharge, and debris entering waterways. Marina operators may face cleanup costs and regulatory penalties.

How Agents Should Advise Marina Clients

Insurance agents play a crucial role in helping marina operators navigate the complexities of event liability coverage. Many standard marina insurance policies are just that — standard. They may contain exclusions or limitations for organized events, particularly those involving the public, alcohol service, or temporary structures.

But you can reduce your clients’ risk by helping to clarify their coverage gaps. You’ll also want to stress the importance of reviewing and updating policies well before event season begins. 

The Right Insurance Protects Everyone

Special events at a marina are an exciting way to bring in revenue. But nothing ever goes exactly according to plan. It’s easy to imagine an underinsured marina someday being financially devastated and reluctantly giving up its role in the community as the place to be. 

But you can protect your marina clients from that fate. And in your downtime, you might even want to hang out at one of their special events and know you’ve had a part in making it such a success.

About Merrimac Marine Insurance

At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ businesses and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.