Storm Surge Destroyed Our Docks: Marina Insurance Paid Millions to Rebuild
The Hurricane That Took Our Business Out to Sea
My family owns a marina on the Gulf Coast. When a hurricane hit, the storm surge was massive. It lifted our entire floating dock system off its pilings and smashed it into a million pieces. Our entire business was destroyed overnight. The cost to rebuild was over $2 million. We were devastated, but our specialized Marina Property insurance was our lifeline. It was designed for this exact catastrophic weather event and paid to have the entire dock system re-engineered and replaced. Without it, our family’s legacy would have been washed away.
Covering the Waterfront: Essential Insurance Needs for Marinas
We’re Not Just Renting Parking Spots; We’re Stewards of Dreams
The owner of my local marina once told me, “I don’t just rent out parking spots for boats. I’m the steward of my customers’ biggest dreams and most expensive toys.” He explained that his insurance has to reflect that immense responsibility. It’s not a simple property policy. It’s a complex package that covers the docks from storms, protects him if he damages a customer’s $500,000 yacht while moving it, and covers a fuel spill at his gas dock. It’s a huge policy for a business built on water and trust.
Marina Insurance Package: Property (Docks!), CGL, Marina Operators Legal Liab (Bailee!), P&I?, Pollution!
The Five Anchors of Our Marina’s Protection
Our marina manager explains our insurance as five essential anchors holding our business steady. Property insurance is the first, protecting our docks and buildings. General Liability is the second, for slips and falls on those docks. Marina Operators Legal Liability (MOLL) is the most critical anchor, protecting us if we damage a customer’s boat. Pollution Liability is the fourth, for a fuel spill. And Protection & Indemnity (P&I) is the fifth, covering our own workboats. Without all five anchors, the business could be swept away in a storm of liability.
Property Insurance Covering Docks, Piers, Buildings, Fuel Systems Against Weather/Fire!
The Winter Ice That Crushed Our Docks
Our marina is on a northern lake. One brutal winter, the ice expanded with incredible force, crushing a whole section of our wooden docks and twisting the steel supports. The damage was over $200,000. Our specialized Marina Property policy was essential. It had a specific provision covering damage from “ice and freeze-up,” a peril a standard policy in a warm climate would never include. It’s a perfect example of how marina insurance has to be tailored to the specific geographic and climate risks you face.
Marina Operators Legal Liability (MOLL): CRITICAL Coverage for Damage to Boats in Your Care! (Bailee)
The Day We Dropped a $300,000 Yacht
I worked at a marina. Our travel lift operator was hauling a beautiful, 40-foot sailboat out of the water for winter storage. A cable on the lift snapped, and the $300,000 yacht crashed back into the water, a total loss. It was a horrifying accident. Our marina was legally responsible. This is the exact scenario that Marina Operators Legal Liability (MOLL) insurance is for. It’s the “boat-dropper’s” policy. It covers damage to our customers’ boats while they are in our “care, custody, or control,” and it’s the most important coverage a marina can have.
General Liability for Slips/Falls on Docks, Customer Injuries On-Site
The Wet Dock, the Worn Cleat, and the Broken Leg
A guest was walking down our main dock, which was wet from the morning dew. He tripped on a slightly raised cleat, fell hard, and broke his leg. The injury had nothing to do with a boat. It was a simple slip-and-trip accident. Our Marina General Liability policy is what covered the claim. It’s the broad protection for injuries to customers on our premises, a critical coverage for a business where the walking surfaces are constantly wet, uneven, and covered in potential tripping hazards.
Protection & Indemnity (P&I) If Marina Operates Workboats or Ferries?
Our Little Workboat Needed Its Own Big Policy
Our marina owns a small, powerful workboat that we use to tow disabled vessels and move moorings. My boss was shocked when our broker told him that boat needed its own separate insurance policy called “Protection & Indemnity” (P&I). He learned that the moment a boat is used for commercial purposes, it’s no longer just property; it’s a vessel with its own unique marine liabilities, including collision, wreck removal, and crew injury. It’s the maritime equivalent of a commercial auto policy.
Pollution Liability for Fuel Spills at Your Fuel Dock! Environmental Risk!
The Leaky Nozzle That Became a Federal Case
A customer was fueling their boat at our marina’s gas dock when the automatic shut-off on the nozzle failed. Over 100 gallons of gasoline spilled into the harbor, creating a massive, shimmering slick. The Coast Guard and the Environmental Protection Agency (EPA) were on site within hours. The cleanup costs and fines exceeded $250,000. Our standard liability policy excluded pollution. But our separate, specialized Pollution Liability policy, a requirement for any fuel dock, covered the entire nightmare.
Comparing Insurance Policies for Small vs. Large Marinas (Coastal vs. Inland)
A Lakeside Dock vs. a Hurricane-Zone Harbor
My uncle owns a small, 20-slip marina on a calm inland lake. His insurance is relatively simple. My friend manages a 500-slip marina in a hurricane-prone area of Florida. Her insurance program is a massive, multi-million-dollar portfolio. It has extremely high windstorm deductibles, complex storm surge modeling, and high limits for pollution and yacht damage. The location (coastal vs. inland) and the size of the boats you serve are the two biggest factors that determine the scale and cost of your marina insurance.
Does Your Policy Cover Damage from Ice or Freeze-Up?
When the Lake Becomes a Vise
I work at a marina on the Great Lakes. Our biggest winter worry isn’t snow; it’s ice. A solid ice sheet can expand with enough force to snap dock pilings like toothpicks. When we bought our marina insurance, our broker made sure the property policy had a specific clause that covered damage from “ice pressure.” Many standard policies, especially those written for southern climates, exclude this. For a northern marina, it’s a non-negotiable coverage that protects against the immense power of the frozen water.
Filing Claims for Dock Damage, Boat Damage (MOLL), or Customer Injuries
The Storm, the Survey, and the Settlement
After a major storm damaged our docks and several customers’ boats, our claims process began. It was a three-pronged effort. We filed a claim under our Property policy for the docks. For this, the insurer sent a “marine surveyor” to assess the damage. We also filed claims under our Marina Operators Legal Liability (MOLL) for the customers’ boats. Each boat owner had to get their own repair estimates. It was a complex, months-long process of coordinating with multiple experts to settle all the different parts of one single event.
Docking My Boat: Trusting the Marina Has Insurance If Their Dock Fails!
My Biggest Investment is Tied to Their Biggest Liability
I keep my family’s small boat, our most valuable possession, at a local marina. Every time I tie it up, I’m placing my trust in their infrastructure. I’m trusting that their docks are well-maintained, their cleats are secure, and their facility is safe from fire. But most of all, I’m trusting that they have a great Marina Operators Legal Liability (MOLL) policy. That insurance is my ultimate assurance that if their dock collapses in a storm and damages my boat, they will have the financial resources to make me whole.
Protecting Your Marina from Catastrophic Weather Events (Hurricanes, Storm Surge)
Our Hurricane Plan is Part of Our Insurance Policy
My marina is in Florida. Our insurance policy has a “Named Storm Deductible,” which is a huge percentage of our property value. To even get the policy, we had to submit a detailed, written “Hurricane Preparedness Plan” to our insurer. It outlines how we secure boats, remove equipment, and protect our docks. If a hurricane is coming and we fail to follow our own plan, our insurer could deny our claim. For us, storm preparation isn’t just a good idea; it’s a contractual obligation to our insurance company.
Workers’ Comp for Dockhands, Mechanics, Office Staff
The Dangers of Water, Power Tools, and Ropes
Being a dockhand is a surprisingly dangerous job. I’ve seen them slip on wet, algae-covered docks, get their hands caught in mooring lines, and suffer electrical shocks from faulty shore power pedestals. Our marina mechanics face risks from power tools and heavy engines. Workers’ Compensation is the mandatory insurance that covers all these varied marine-specific injuries. It pays the medical bills and lost wages for the team that keeps our waterfront running, a critical protection in this unique work environment.
Coverage for Boat Hauling/Launching Operations? (Mobile Equipment?)
The Travel Lift is Our Most Useful, and Most Dangerous, Tool
Our marina uses a massive mobile boat hoist, called a Travelift, to haul boats out of the water. It’s the centerpiece of our operation. Our insurance policy has to specifically cover this piece of equipment in two ways. First, our property policy covers physical damage to the lift itself if it’s in a fire or accident. Second, and more importantly, our Marina Operators Legal Liability policy covers the catastrophic loss if the lift malfunctions and drops a customer’s multi-million-dollar yacht.
Business Interruption If Damage Closes Your Marina During Boating Season?
The Fire That Sank Our Summer Season
A fire destroyed our marina’s main office and ship’s store in May, right at the start of boating season. We were forced to operate out of a temporary trailer for three months, and our fuel sales and store revenue plummeted. Our Business Interruption insurance was the only reason we survived the summer. It analyzed our sales from the previous season and paid us our projected lost profits for the entire time we were partially shut down. It protected our income when our main facility couldn’t generate it.
Ship Repairers Legal Liability If You Offer Maintenance Services?
We’re Not Just a Marina; We’re a Boatyard
My marina has a full-service repair yard where we do engine work and hull painting for our clients. This creates a risk that’s different from just storing boats. If our mechanic’s faulty engine repair leads to a fire at sea, we could be sued. For this, we need a separate “Ship Repairers Legal Liability” policy. It’s like malpractice insurance for boat mechanics. It protects us from claims arising from the skilled service and repair work we perform, a coverage our standard marina policy doesn’t include.
Finding Insurers Specializing in Marine Property and Liability Risks
Our Agent Smells Like Saltwater, Not a Strip Mall
When my dad was insuring his marina, he didn’t call the agent who insured his car. He found a specialized marine insurance broker. This broker understood the difference between a floating dock and a fixed pier, knew what P&I coverage was, and had access to the handful of specialty insurance companies that actually know how to underwrite marine risks. He said you want an agent whose office is near the water, because they live and breathe the unique liabilities of a business built on the waterfront.
What if a Fire Spreads from One Boat to Others in Your Marina? MOLL/Property Issue.
The Domino Effect of a Boat Fire
A fire started on a customer’s boat due to faulty wiring. The wind was blowing, and the fire quickly spread, damaging the two boats docked next to it and the dock itself. This created a complex, multi-layered insurance claim. Our marina’s Property policy covered the damage to our dock. Our Marina Operators Legal Liability (MOLL) policy had to respond to the claims from the owners of the two adjacent boats that were damaged while in our care. It’s a classic marina nightmare that shows how quickly one problem can ignite many others.
Marina Insurance: Anchoring Your Business with Financial Security
The Mooring That Holds You Through a Storm
A marina provides a safe harbor for boats, with strong moorings and docks to hold them steady through a storm. A comprehensive marina insurance policy does the same thing for the business itself. It is the strong, financial mooring that holds the business steady when it’s hit by a storm of liability, property damage, or catastrophic weather. It’s the anchor that ensures that after the storm passes, your business is still securely in place and ready to welcome your boaters back.