Potential Trouble Spots in Insuring Marine Manufacturers

Potential Trouble Spots in Insuring Marine Manufacturers

With any business, there are risks, and the marine industry is no stranger to this. The boating industry is huge, impacting over 650,000 indirect and direct American jobs and 34,833 businesses, according National Marine Manufacturers Association.

Marine expertise is key when it comes down to coordinating and executing projects within the allotted time frame and budget. Whether working on a tanker, barge or yacht, everything must be planned accordingly to insure that your client is getting the safest and highest quality product possible. Considering that some projects can stretch over a period of months or years, it important to make sure that your client is insured with the best marine manufacturers insurance possible. Here’s some potential trouble spots in marine manufacturing to discuss with your clients, courtesy of Risk & Insurance.

Heavy Equipment

Many marine manufacturers rely heavily on their equipment. Without this equipment, things can’t get done. If one doesn’t properly maintain their equipment, then wear and tear is inevitable. Things eventually break down and stop working, that’s why it’s important to upkeep them. Outdated equipment inspections, poorly kept maintenance records and under-trained operators often leave companies exposed to significant liabilities. These are things that not only leave a company open to risk, but also leaves a company set up for long-term problems. Make sure your client gets coverage on all the equipment they are using.

Cranes on Barges

Just like the other heavy equipment used, cranes on barges are definitely open to wear and tear that eventually can render them pretty useless. On top of that, they can also be dangerous if not used properly. If your client is not adhering to OSHA or CFR requirements, your client can be subject to some heavy fines or even incarceration after an accident.

Contractual Liability

Unexpected claims result from a lack of contracts, non-updated agreements or contracts that don’t include “hold harmless” or “indemnity agreements”. That’s why it’s important to make sure that everything is kept track of and held accountable for.

Fleet Exposures

Failure to ensure that motor vehicle and accident records are updated or not providing quality defensive driving or accident avoidance training can result in significant losses. It’s important to make sure you know who is working on your client’s boat, especially if they can be considered a liability.

Catastrophe Exposure

Always keep in consistent contact with vendors and suppliers. If something goes wrong and a catastrophic event occurs, then there needs to be a plan in place in order to make sure that everything is okay. Weather disasters can often end in significant downtime for a marine manufacturer.

About Merrimac Marine Insurance

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