Insuring Custom Marine Parts: What Manufacturers Must Know

In the marine world, precision is everything. Manufacturers of custom components operate in an environment where performance failures aren’t just inconvenient — they’re dangerous and costly. That’s why manufacturing parts and accessories insurance is essential for protecting businesses that build highly specialized marine parts and accessories, especially when the work involves tight tolerances, complex materials, and demanding clients.

From one-off propeller systems to custom electronics housings, these manufacturers depend on advanced equipment, skilled labor, and streamlined operations. Insurance agents serving this market need to understand not only the coverage required but also the business pressures these clients face. Generic policies miss too much. When the risk is built into the product itself, coverage has to match the complexity.

Risks Facing Marine Manufacturers

Custom marine manufacturers face a distinct set of exposures that extend well beyond typical product risks.

Product Recalls

A single flaw in a specialized batch can trigger widespread recalls, disrupt client operations, and damage vendor relationships. According to one report, recalls are becoming more common across manufacturing sectors due to stricter standards and supply chain inconsistencies.

Supply Chain Delays

Many marine parts and accessories rely on imported materials or precise scheduling. A delay in one component can derail an entire production run and result in penalties for missed delivery deadlines.

Operational Accidents

Manufacturers operating CNC equipment, welding stations, or testing systems face exposure to employee injury, machinery damage, and production shutdowns.

Defective Components

When parts fail in the field — especially in marine environments — the consequences can be serious. The manufacturer may be held responsible for property damage, injury, or environmental harm.

Without the right manufacturing parts and accessories insurance, even a single incident can lead to significant out-of-pocket losses.

Coverage That Protects Custom Work

Marine manufacturers producing custom parts need policies designed for precision work. Core protections should include:

• Property insurance: Covers facilities, equipment, and raw materials against fire, theft, or weather-related loss
• General liability: Protects against third-party injury or property damage occurring on the premises
• Products and completed operations liability: Responds when a product causes harm after it’s been delivered or installed, critical for any manufacturer whose products are installed on watercraft
• Business income: Covers lost income and extra expenses resulting from a covered interruption, such as fire, equipment failure, or supply chain disruption
• Pollution liability: Addresses exposures tied to chemicals, waste, or runoff — especially relevant for facilities handling paints, adhesives, or other hazardous materials

Marine parts and accessories are often application-specific. Off-the-shelf insurance won’t reflect the investment these businesses make in design, quality control, and performance.

How Merrimac Marine Tailors Coverage

Merrimac Marine works with agents to develop coverage solutions that match how marine manufacturers actually operate, from initial prototyping to delivery. By leveraging long-standing carrier relationships and marine-specific underwriting experience, Merrimac Marine helps ensure that coverage aligns with real-world exposures.

The team evaluates every stage of the production lifecycle — fabrication, assembly, inventory, and distribution — to identify potential gaps. Whether the exposure lies in third-party contracts, offshore sourcing, or testing environments, Merrimac Marine is equipped to address it. As insurance needs evolve, we provide agents with access to responsive underwriting, proactive loss control tools, and claims guidance that reflects more than 30 years of marine specialization.

Custom Parts Deserve Custom Protection

Agents serving marine parts manufacturers need to work with a partner who understands the risks these businesses face daily. From equipment investment to product performance, every part of the operation demands attention to detail.

Merrimac Marine helps agents deliver manufacturing parts and accessories insurance programs that reflect the full scope of risk — protecting operations, safeguarding reputations, and supporting long-term client success. Get in touch with us to review your client’s coverage and explore how Merrimac Marine can help refine and strengthen their insurance program.

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.