Types of Insurance for Marinas

Many marinas ask for a certificate of insurance for you to secure a spot. Besides your ticket to securing your spot; what is a certificate of insurance and how can you get one?

What is a Certificate of Insurance?

A certificate of insurance is a document that proves that you have a specific kind of insurance. Much like the Auto ID card you carry with you in case of an accident, a certificate of insurance states what’s on your policy and the type of coverage you have. 

There are three types of coverages that marinas want to see on certificates of insurance: 

1. General Liability Insurance

This is the most commonly requested form of coverage. General liability insurance is the basis of any insurance program for a business. This policy defends you if you were to be sued over your business operations leading to bodily injury or property damage. 

For example, imagine that you’re working on a boat and there’s a tool on the dock next to you. If someone accidentally trips on it, they could sue you. Bodily injury or property damage is covered by general liability insurance. Potential for these scenarios is why many marinas ask for this type of insurance before allowing you on the premises. 

Ship Repairs Legal Liability is not typically seen on the certificate of insurance, but it offers protection for the boat that you’re working on. It’s important to have both types of coverage so there is protection for all property involved. 

2. Workers’ Compensation Insurance 

This type of coverage is harder to obtain than other forms of insurance in the state of Florida. Many insurance companies are reluctant to provide this type of coverage to small businesses that are doing repairs on the water. As the name suggests, this insurance covers any bodily injuries that your employees may sustain while on the job.

Not every marina requires this type of insurance upfront, but they can ask for it whenever they’d like. The State of Florida says that if you have more than three employees, you’re required by law to carry workers’ compensation. The State of Florida also says that even if you’re not legally required to carry the coverage, you’re still subject to the workers’ compensation statutes. This means that, as an employer, you’re still responsible if one of your employees gets hurt.

Smaller businesses have the most difficulty in obtaining workers’ compensation coverage. Unfortunately, there aren’t many carriers who are willing to provide coverage for people doing work on the water. 

3. Business Automobile Liability

Although this is the least commonly requested form of insurance, it’s still an important coverage that you should have nonetheless. 

Chances are that you’re driving a car to the marina so you can get to the job site. The loading and unloading of your car is not covered by your general liability coverage. For example, if you’re bringing your tools from your car to the boat and something were to go wrong, the auto liability policy is what would be providing coverage if bodily injury or property damage were to occur. 

Additional Information

It’s not uncommon for marinas to request small grammatical changes to your certificate of insurance. Certificates of insurance are simply representations of your insurance, not your actual insurance policy. However, if a specific wording is not on your insurance policy, it cannot be added to your certificate of insurance. In this event, your insurance company may need to make some endorsements to your policy to comply with the marina’s request. 

There is a possibility that you may not be able to work with that specific marina. The marina is either requiring insurance that is too expensive for the amount you would have made for the job, or insurance that is not available to you based on the size and operations of your business. 

Not all insurance is created equal. Always pay close attention to the terms and conditions that are being requested by the marina before you start the job. Contractors can be surprised by the steep costs of adding additional coverage to their policies for a specific job. 

Talk to your trusted insurance advisor before accepting a job so you can be confident that you have the coverage you need. 

If you don’t have a trusted advisor or if you’re looking for a second opinion, contact us. We’re glad to help you with all of your insurance needs.

We can now also offer quotes for Texas Marine Artisan Insurance!