Whether it's Commercial Marine Insurance or Personal Marine Insurance you are looking for, we invite you to use Our Knowledge to Your Advantage. The one-two punch of our vast global resources and solid local relationships will ensure you receive the best coverage, best value and best service. Our specialized HUB International MARINE insurance practice will ensure you receive the best possible solution tailored to your needs and your circumstances. We want you to have a good head start on some of the basics of Marine Insurance.
- The Skinny on Commercial Insurance for Yacht Clubs and Marina Operators
- The Skinny on Commercial Insurance for Ship Repairers
- The Skinny on Personal Pleasure Craft Marine Insurance
The Skinny on Commercial Insurance for Yacht Clubs and Marina Operators:
Legal Liability for Marina Operators
We want all of our clients to be well-informed about their MARINE Insurance needs and options. For Yacht Clubs and Marina Operators, we want you to know what you really need to be protected.
Marina Operators Liability
Q: Is it really required?
A: The misconception is that if you own or operate a marina, you automatically require Marina Operators Liability. Yet this is not true in all cases. Step one is to identify your risk exposure. If your Marina offers any of the following, you do indeed require Marina Operators Liability:
- Lifting, hoisting or hauling of vessels out of water;
- Provide land storage;
- Operating ways;
- Repairing or service work; OR
- Incidental repair or maintenance.
Q: What do I need if I don't offer any of the above?
A: The answer is an important follow-up question: Do you have Care, Custody & Control of your customers' vessels?
Care, Custody & Control
Q: Does moorage mean that you have Care, Custody & Control of your clients' vessel?
A: Not always. Moorage agreements often limit the liability of the Marina and clearly provide a description of responsibility of the Marina to the client.
Q: What is Care, Custody & Control? And what does it mean to be a Bailee for Reward?
A: If you have Care, Custody & Control of a client's vessel and you are being paid for your Marina services, you are acting as a Bailee for Reward. That makes you legally liable for any damage to the vessel resulting from your negligence. If vessels are left with you—whether in your yard, building, ways or travel lift—you again have Care, Custody and Control. The same applies if you provide pick up and/or deliver your client's vessel.
Any Questions? Email firstname.lastname@example.org or call us today at 604-990-6496.
The Skinny on Commercial Insurance for Ship Repairers
Commercial Insurance: Legal Liability for Ship Repairers
We want Ship Repairers to know what's behind the fine print in many policies.
Care Custody & Control
Q: What is it? And what does it mean to be a Bailee for Reward?
A: If you have Care, Custody and Control of a client's vessel and you are being paid for your work, you are acting as a Bailee for Reward. That makes you legally liable for any damage to the vessel resulting from your negligence. If your work requires that vessels are left with you—whether in your yard, building, ways or travel lift—you again have Care, Custody and Control. The same applies if you sea-trial, pick up and/or deliver your client's vessel.
Q: Who needs to consider purchasing it?
A: You should consider buying Legal Liability Insurance, whether you are a small mobile repairer working on small recreational boats, provide support services to large commercial vessels such as HVAC or domestic systems, operate a marina with repair facilities or run the largest of shipyards.
Q: What does it cover?
A: It covers both damage to the vessel and bodily injury to third parties deemed the result of repairer's negligence while the vessel is in their care.
Q: What is the “Discovery Clause”?
A: It is a clause limiting the time frame in which a claim can be presented to the insurer. It is often one year. The Discovery Clause can be generally increased
Q: What is the Traveling Workman Endorsement?
A: If any of your work is done away from your home yard location or if you are a mobile repairer, your policy must be endorsed to cover this exposure. Standard coverage does not include this risk.
Q: What is Detention Endorsement?
A: If for any reason, it is deemed that your negligence resulted in the delay of a ship that incurs demurrage charges, the standard policy does not include coverage for these costs. This is important because the cost of demurrage can be extremely high.
Any Questions? Email us at email@example.com or call us today at 604-990-6496.
The Skinny on Personal Marine Insurance
Q. What level of liability insurance do you require?
A. Most marinas will require you to carry at least $1 Million in Liability Insurance. However, to be properly protected within the scope of the Marine Liability Act, you need to carry a minimum of $2 Million in coverage.
Q. What is a Marine Survey and why is it important?
A. Depending on the age of your vessel, you may be required to have a Marine Survey done. The surveyor will need to be approved by Underwriters or a member of SAMS (Society of Accredited Marine Surveyors) or NAMS (National Accredited Marine Surveyors).
Q. Are different kinds of vessel materials more expensive to insure?
A. Wood vessels are more expensive to insure than fibreglass vessels.
Q. What is claim service and why is it important?
A. Most claims happen outside of office hours. Does your broker have 24 hour claim service? Do they have the actual knowledge to assist you with appointing a Surveyor, Lawyer, Salvage Team and other experts you may need on the weekend?
Q. What should you pay special attention to in reviewing your policy?
A. Not all insurance policies are the same. It is not always about price, but what you get for that price. Two aspects you want to look at closely when shopping around are: the exclusions of the policy and how a loss is settled. At HUB International, our Lifeline policy is an agreed value policy. That means we will not depreciate your vessel in the event of a total loss. All partial loss claims are settled on a new for old basis, again meaning no depreciation (not even on Sails, Canvas, Upholstery, or Rigging). Our Lifeline policies have fewer exclusions than most other policies.
Q. What is limit of insurance?
A. The limit of insurance you purchase on your boat needs to include items such as taxes, duty, freight and additional equipment installed. Those values may not be included in the initial price of your boat. The limit also needs to reflect the furnishing and equipment, which would include kitchen items, safety gear, bedding, and anything else that is part of the running or operation of your vessel.
Q. Does how damage is caused make a difference?
A. There is a difference between resulting damage due to Latent Defect and wear and tear. Our policies cover both. Many other policies available will only cover Latent Defect. Latent defects are inherent weaknesses which normally are not detected by examination or routine tests, but which were present at the time of manufacture and are aggravated by use. Our policy will cover resulting damage when the damage results from faulty designs, faulty workmanship, the installation or use of improper or defective materials, wear and tear, gradual deterioration or corrosion provided the defect or condition would not have been detected through a reasonable prior inspection.
Q. What is Replacement Cost, Agreed Value and Actual Cash Value?
A. The difference between Replacement Cost, Agreed Value and Actual Cash Value. Do you REALLY know what you are insured for?
Replacement Cost: In the event of a total loss, your Underwriters would replace the boat with a similar current model year, despite the limits shown on the policy. In the event of Partial Loss, repairs will be done a new for old basis without deduction.
Agreed Value: In the event of a total loss, you would be pay out what you are insured for on your policy coverage page with no deduction for depreciation. In the event of Partial Loss, repairs will be done a new for old basis without deduction.
Depreciated Value: Applying full depreciation to your vessel may result in you not being paid out the full amount you are insured for. Partial losses would also be depreciated on all parts and labour.
Did You Know?
…That exclusions are the Fine Print. The most important part of any All Risks Policy is not what is covered but what is excluded. The structure of an All Risk policy is such that everything is covered other than what it is excluded. It is critical to determine what you are not covered for. Read and ask questions about the exclusions, as this is the fine print that needs to be understood. This is where our policies excel compared to others available.
…Who you are insured by? There are several types of Insurer-Broker relations. Are the actual Underwriters in Canada? What is their financial strength? Do they have the required marine expertise to represent you in a liability matter? Where will claims be processed and handled? Is there an additional intermediary whom you are not aware of? You need to ask these questions before you purchase the insurance - otherwise you may find that when you really need your policy, the people you are dealing with on the claim are far removed from both you and your Insurance Broker.
…That the two largest risks for boat houses are Snow Load and Wind storms. What value should it be insured for? What limits of Liability do you need? Will there be coverage and what would the deductible be? Is there coverage for wreck removal?
For everything you need to know about MARINE Insurance and for the best coverage, value and service, contact us today.