Reply
 
Thread Tools Display Modes
 
Old 04-04-2012, 12:24 PM   #1
Guru
 
Join Date: Oct 2007
Posts: 734
Marina Insurance

I am having some fiberglass/paint work done on my boat which is out of the water for winter storage at the marina. We keep the boat there year round. Today, they informed me that they have just raised their requirement for contractor's insurance from $2M (it was previously $1M) to $10M. Fortunately it does not look as though I shall have a problem this time as my contract specifies $1M. I wondered whether this is becoming typical or whether they are just trying to squeeze out the smaller contractors.
Chris
__________________
Advertisement

Chrisjs is offline   Reply With Quote
Old 04-04-2012, 01:42 PM   #2
Guru
 
Tony B's Avatar
 
City: Joe Wheeler State Park, Al
Country: Cruising/Live-Aboard USA
Vessel Name: Serenity
Vessel Model: Mainship 36 Dual Cabin -1986
Join Date: Jul 2011
Posts: 1,250
Insurance rates seem to be going up everywhere and not just on boats.
As for liability in marinas, I would think that the minimum for contractors is probably going up all over especially if you are in a marina with high dollar boats.
I am an under $50K boat owner but in my marina it would be safe to say that most piers have well over $10M in boats not to mention the cost of the piers themselves.
As a general rule, liability insurance is not that costly. $10M in liability does not cost 10 times as much as $1M. If someone has any kind of a sustainable boat maintenance business then surely they can afford the insurance. Hiring work to be done on a boat is usually quite costly and insurance is a very small part of the built-in costs.
I have been around boats long enough to know that a good amount of claims are fraudulent. This drives the costs way up for everyone.
__________________

__________________
Cruising the Eastern U.S. Inland Waterways and Gulf Coast. Presently on the ICW in Louisiana and heading Back to Texas.
Tony B is offline   Reply With Quote
Old 04-04-2012, 02:15 PM   #3
Guru
 
Phil Fill's Avatar
 
City: Everett Wa
Country: US
Vessel Name: Eagle
Vessel Model: Roughwater 58 pilot house
Join Date: Oct 2007
Posts: 2,919
So why if your boat is on the hard and you plan on doing some work on it, is the marina/yard asking you for contractors insurance? You are an owner not a contractor?
Phil Fill is offline   Reply With Quote
Old 04-04-2012, 02:32 PM   #4
Guru
 
Join Date: Oct 2007
Posts: 734
The work is being done by a self-employed contractor who has workers comp. and liability insurance, just not $10M worth. I checked with another nearby marina. They only require $1M. I think I shall move there next winter!
Chrisjs is offline   Reply With Quote
Old 04-04-2012, 07:55 PM   #5
Guru
 
Edelweiss's Avatar
 
City: PNW
Country: USA
Vessel Model: 1976 Californian Tricabin LRC
Join Date: May 2011
Posts: 1,834
Thumbs down

It's amazing where these things come from and there is always a new angle every year.

We had one boatyard up here and another marina, out of the blue, started asking their patrons to add them to their individual boat insurance policies. (Either they have the same attorney or insurance co. I guess?)

It wasn't too popular with the boat owners or boat insurance co. as they have both dropped the requirment after less than a year.
LB
Edelweiss is offline   Reply With Quote
Old 04-04-2012, 09:03 PM   #6
Guru
 
City: North Charleston, SC
Country: USA
Join Date: Sep 2010
Posts: 4,390
One million dollars is not much these days. One could easily do more than one million dollars worth of damage to a marina or the boats.

A fuel spill called in to the EPA could easily cost a million dollars.
rwidman is offline   Reply With Quote
Old 04-04-2012, 11:10 PM   #7
Art
Guru
 
Art's Avatar
 
City: SF Bay Area
Country: USA
Vessel Model: Tollycraft 34' Tri Cabin
Join Date: Feb 2011
Posts: 7,979
Money is funny! Insurance money has gone crazy!! Economies are simply going nuts!!! Next step is an accounting break-down - Globally! Then what? War!!... God forbid
Art is offline   Reply With Quote
Old 04-05-2012, 08:21 AM   #8
Guru
 
Keith's Avatar
 
Vessel Name: Anastasia III
Vessel Model: Krogen 42
Join Date: Oct 2007
Posts: 2,716
I wonder what would happen if I asked the marina for a copy of THEIR insureance policy, and asked to be added as an additional named insured?
Keith is offline   Reply With Quote
Old 04-05-2012, 08:26 AM   #9
Guru
 
City: North Charleston, SC
Country: USA
Join Date: Sep 2010
Posts: 4,390
Quote:
Originally Posted by Keith View Post
I wonder what would happen if I asked the marina for a copy of THEIR insureance policy, and asked to be added as an additional named insured?
What is stopping you from asking?
rwidman is offline   Reply With Quote
Old 04-05-2012, 08:32 AM   #10
Guru
 
City: North Charleston, SC
Country: USA
Join Date: Sep 2010
Posts: 4,390
Quote:
Originally Posted by Chrisjs View Post
The work is being done by a self-employed contractor who has workers comp. and liability insurance, just not $10M worth. I checked with another nearby marina. They only require $1M. I think I shall move there next winter!
For me, that wouldn't be sufficient reason to move my boat.

There are many reasons to chose one marina over another. Convenience, cost, attitude of owners and staff, ease of docking, slip neighbors, condition of the marina, amenities, the list goes on and on.
rwidman is offline   Reply With Quote
Old 04-05-2012, 11:42 AM   #11
OFB
Guru
 
OFB's Avatar
 
City: Richmond bc
Country: Canada
Vessel Name: Invader no1
Vessel Model: Kishi Boat works
Join Date: Mar 2012
Posts: 636
Chances are the marinas insurance underwriter as made that request for the change in liabilty coverage from service providers working within the facility.

Good chance other facilities will be forced to follow.
OFB is offline   Reply With Quote
Old 04-05-2012, 08:22 PM   #12
Guru
 
Edelweiss's Avatar
 
City: PNW
Country: USA
Vessel Model: 1976 Californian Tricabin LRC
Join Date: May 2011
Posts: 1,834
Quote:
Originally Posted by OFB View Post
Chances are the marinas insurance underwriter as made that request for the change in liabilty coverage from service providers working within the facility.

Good chance other facilities will be forced to follow.
----------------------------------------

When I renewed this year, I asked my Insurance Co. if they had heard of adding boat repair yards/marinas to an individual policy and they said they had had a few inquiries. But to date, they had declined to bind a policy in that case. They would not accept the liability for a non-owner/operator.

The yard that was asking for it here dropped the request. If no insurance company would comply, then no one could haul out in their yard. (It would be hard to survive in the current econonmic conditions, if your yard was turning away business like that.)

Larry B
Edelweiss is offline   Reply With Quote
Old 04-05-2012, 10:21 PM   #13
Senior Member
 
Bilgewater's Avatar
 
City: New Bern, N.C.
Country: USA
Join Date: Jun 2011
Posts: 257
Our marina asked to be added an additional interest. I called our company, Progressive, and they had no problem adding them on at no additional charge. Said they do it all the time. Doesn't seem to be an issue to me.
__________________
Bilgewater
"Keep putting off till tomorrow, and you'll end up with a lot of empty yesterdays" Prof. Harold Hill
Bilgewater is offline   Reply With Quote
Old 04-06-2012, 11:23 AM   #14
Guru
 
Scary's Avatar
 
City: Walnut Grove Ca
Country: USA
Vessel Name: Cary'D Away
Vessel Model: Hatteras 48 LRC
Join Date: Apr 2012
Posts: 884
Smart Marinas should ask to be additionally insured.

Most property insurance policies do not cover damage to tenants property caused by other tenants. By being added to your policy if your boat should catch fire and cause damage to another boat the marina is protected under your policy. This a common request in California and most insurance companies have no problem adding the marina to your policy at no additional charge to you. Sometimes they get a little cautious if you are adding more than a couple of marinas. Travelers Insurance automatically issues additionally insured certificates on every renewal to my marina at no cost to me. This also keeps the marina owner aware of your insurance status as they are issued laps of insurance warnings. One of the marinas in my area has a sunken house boat hanging off piling in it's slip. The marina owner is stuck with the cost of removing this hazard as the owner just walked. If this is becoming standard practice in California it be coming to a marina near you soon.
__________________

Scary is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off





All times are GMT -5. The time now is 07:56 PM.


Powered by vBulletin® Version 3.8.8 Beta 4
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.0
Copyright 2006 - 2012