5 Insurance Coverages Every Harbor Master Should Know

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5 Insurance Coverages Every Harbor Master Should
Know
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• Does anyone know how insurance started?
• Edward Lloyds coffee house was a gathering place
  for ship owners and sailors
• Ship owners were experiencing huge losses when a
  vessel would wreck or disappear
• They started to list out each vessel and each
  person would choose a vessel to put money toward,
  if it was lost or damaged.
• This was the start of Lloyds of London and
  insurance really started out of the marine market

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The 5 Coverages

• Marine General Liability
• Care, Custody Control policies
• PI and Hull
• Pollution
• Miscellaneous others

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How do you Manage Risk?

• Avoidance
• Loss Prevention
• Transfer of Risk
• Combination of any of the Three

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Commercial General Liability

• Liability is there to protect you from property
  damage and bodily injury, that you are
  responsible for.
• It is NOT coverage for
• Expected or intended injury
• Watercraft
• Pollution

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Marine General Liability

• Covers third party property damage and bodily
  injury
• Picks up coverage for operations on docks,
  floats, piers, boats, platforms etc.
• Provides the specific coverage needed by a harbor

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• Cranes
• Who is allowed to use the crane?
• Has the crane been modified so that it cannot
  reach maximum lifting capacity
• What do you have to worry about?
• Operator error
• Overloading
• Maintenance Issues

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• Electricity Water
• Do boat owners know they are responsible for
  making sure power is hooked up and active from
  the dock to the their boat?
• What do you do in the event of a power outage?
• Security Issues
• What are the duties of the night watchman?
• Do you restrict access to the harbor?

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• Boat Grid
• Do you have an engineering report?
• Signage updated and visible?
• Ladders
• Are the ladders safe and secure?
• Is there a maintenance schedule?
• Ramps
• Do you cover the ramp?
• Traction Surface
• Maintenance Schedule

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Contractors

• Do you require a certificate of insurance from
  all the contractors doing work on the harbor
  premises?
• In the event of a claim, if that contractor
  doesnt have insurance or doesnt have enough
  insurance, the harbor is going to end up getting
  involved.

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Vendors

• What do you require from vendors that sell their
  product in the harbor?
• What happens if a customer slips and falls when
  getting off the vessel?

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Care, Custody Control

• Includes vessels, cargo, equipment that you are
  responsible for while under your care, custody
  control
• Most General Liability policies exclude items in
  your CCC unless it is specifically requested back
  on the policy

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Example of CCC

• Welder is working on boat and it catches fire and
  is a total loss. The vessel was in his CCC so he
  was responsible for coverage to the vessel

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Ship Repairers Legal Liability

• Provides coverage for damage to a watercraft,
  their equipment or cargo while the watercraft is
  in your CCC for the purpose of repair or
  alteration.
• Excludes storage of a vessel

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• Who Needs Ship Repairs Legal Liability?
• Shipwrights, marine contractors, marine cleaners,
  or any business doing repair or maintenance to a
  vessel.
• If you repair, maintain or service the vessel you
  need the coverage

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Wharfingers Legal Liability

• Coverage for physical loss or damage to a vessel,
  equipment, cargo or freight while in the CCC of
  insured at their landing or mooring facilities

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• Who needs Wharfingers Legal Liability?
• City Docks, Marinas, Waterfront Restaurant a
  lodge that owns their own dock, etc.
• If you store, moor or dock the vessel you need
  coverage

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Terminal Operators Stevedores Legal Liability

• Terminal Operators Damage to property stored
  such as cargo, containers
• Stevedores - Property damage to watercraft,
  equipment, cargo freight resulting from loading
  or unloading by the insured.
• Dropping cargo overboard, damage cargo, damage
  vessel, etc.
• Anything that takes place while loading or
  unloading the vessel

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• Who Needs This?
• Fish Processing Plants, Ferry, Barge Lines, Crane
  Dock
• Exclusions
• Loss or damage caused by exceeding the lifting
  capacity of any crane, travel lift or other
  lifting device

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Marina Operators Legal Liability

• Provides legal liability coverage for
• Repair, alteration maintenance
• Storage ashore afloat
• Hauling launching
• Fueling
• Pump Out

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PI and Hull

• Liability on the vessel
• Physical damage to the hull
• Wreck removal

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Pollution

• What Does a Pollution Policy cover?
• Clean-up costs
• Third part property damage
• Loss of public services
• Natural resource damage remediation
• Loss of revenue by third parties
• Federal Administration penalties
• Investigation Legal Defense
• Advertising for Claims
• Civil Penalties
• Public Relations
• Firefighting Salvage

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Miscellaneous Coverages

• Property Coverage
• Docks, cranes, buildings, pumps etc
• Business Auto
• Owned vehicles and Non Owned Vehicles
• Bumbershoot
• Excess Liability
• Employees
• Qualified workers provided with proper equipment
• Employers Liability