Insurance for a marina owner is a fixed cost of doing business, necessary in the event that a disaster strikes. Insurance for marinas is likely one of the largest single line items of your budget. If fortunate, you may go through your entire business career without ever filing a claim, but this is not a risk worth taking. The best way to keep costs down is by having a marina that is well maintained and operated, and also having a low loss experience.
Your insurer needs to have a real sense of what your marina business involves, which is the first step in determining how much insurance is needed to cover your business. Most agents working in the marina insurance field use factors such as the number of docks and the value of those docks, along with revenues for dockage, storage, and other factors, and then combining them to determine a premium for the simple risks of operating the facility.
Coverage needs may change
Your operation may start out small and grow over time. The marina may wind up adding a restaurant, boat sales, repairs, even a swimming pool, and gym facility. Later you may additionally add a few tennis courts, dockage, perhaps boat rentals. All that growth obviously means greater coverage needs and concerns. You should do an annual review of your policy so that it includes the latest updates and changes.
Operating in the navigable waters of the US brings federal maritime issues into the equation, along with homeland security issues, and coast guard security. You’ll also need to consider the local and state EPA, DNR, and other authorities responsible for monitoring environmental quality. Now that your facility offers all of these other services, has become a multi-use facility combining a variety of businesses, several insurance issues must be properly addressed.
It’s up to the agent to go through the motions in quoting and negotiating with various underwriters to secure your policy needs. Hopefully, the result will be a superior insurance for marinas program, at a great price, with an agent who works hard for you because he or she knows they have your support throughout the process.