What Should Agents Reassess When Marina Operations Change?

As time passes, a marina account can drift away from the information on file. For instance, a marina that once focused on dockage and storage may now rent out boats or perform repairs. Its activities and responsibilities have changed, so a marine liability insurance program built around its former operations may not reflect what the business does today.

For agents handling renewals, take a fresh look at your client’s insurance program, so you can spot which operational changes need updated account information.

What Happens When a Marina Adds Marine Services?

When a marina adds services, it creates more value for the business but also invites more potential problems. Offering boat rentals, sales, or vessel demonstrations can change a marina’s relationship with both customers and vessels. A dockage-focused marina mainly provides space, but a marina that rents boats puts vessels in customers’ hands.

Ask your clients whether they’re assuming responsibilities they didn’t have during the last renewal. For example, perhaps a marina now operates vessels, arranges rentals, or conducts demonstrations.

Clarify the following:

• Vessel ownership: Does the marina own the boats, or does a dealer, consignor, or other party?
• Customer interaction: Who meets customers, explains vessel operation, and hands over the boat?
• Responsibility: Which duties has the marina assumed that it didn’t have before?

In its 2024 recreational boating statistics, the U.S. Coast Guard ranked operator inexperience among the top five primary contributing factors in accidents. Its report found that nearly 70% of deaths occurred on boats whose operators lacked boating safety instruction.

Does In-House Repair Change Liability Considerations?

A marina that sends repair work to independent contractors operates differently from one whose own employees perform repairs and maintenance. Bringing that work in-house can expand the marina’s responsibility for customer vessels and for the quality of the work itself.

When you review your marina client’s policy, clarify the types of work performed, whether employees, contractors, or both perform it. Identify what responsibility the marina assumes for customer vessels in its care and for completed work.

Depending on the operation, ship repairers legal liability and products-completed operations liability (which Merrimac offers as distinct coverages) may warrant review. Which coverage responds to a given claim depends on the facts and the applicable policy wording, not solely on when a loss occurred or an allegation arose.

What if the Marina Adds Non-Marine Businesses?

Restaurants, retail shops, and lodging can extend a marina’s activities well beyond traditional marine operations. A restaurant the marina runs differs from one an independent tenant operates on marina property.

For each new business, ask your client who controls the premises, who performs the activity, who interacts with customers, and who assumes responsibility under any lease or agreement. 

Reassess the Account as Operations Evolve

Insurance policies need to grow with a business. Changes in services, responsibilities, and business arrangements can alter a marina’s liability exposures.

When you meet with your client, compare the marina’s current operations, not just its original application or prior renewal information, with its existing insurance program.

Agents need an up-to-date understanding of what the marina does, who performs each activity, and who assumes responsibility to judge whether its marine liability insurance coverage remains appropriate. 

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.