5 Insurance Coverages Every Harbor Master Should Know

Does anyone know how insurance started? Edward Lloyds coffee house was a gathering place for ship owners and sailors 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 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. 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 This was the start of Lloyds of London and insurance really started out of the marine market

The 5 Coverages Marine General Liability Marine General Liability Care, Custody & Control policies Care, Custody & Control policies P&I and Hull P&I and Hull Pollution Pollution Miscellaneous others Miscellaneous others

How do you Manage Risk? Avoidance Avoidance Loss Prevention Loss Prevention Transfer of Risk Transfer of Risk Combination of any of the Three Combination of any of the Three

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

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

Cranes 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? What do you have to worry about? –Operator error –Overloading –Maintenance Issues

Electricity & Water 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 Security Issues –What are the duties of the night watchman? –Do you restrict access to the harbor?

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

Contractors Do you require a certificate of insurance from all the contractors doing work on the harbor premises? 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. 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.

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

Care, Custody & Control Includes vessels, cargo, & equipment that you are responsible for while under your 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 Most General Liability policies exclude items in your CCC unless it is specifically requested back on the policy

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 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

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. 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 Excludes: storage of a vessel

Who Needs Ship Repairs Legal Liability? 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

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 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

Who needs Wharfingers Legal Liability? 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

Terminal Operators & Stevedores Legal Liability Terminal Operators – Damage to property stored such as cargo, containers 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. 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

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

Marina Operators Legal Liability Provides legal liability coverage for: Provides legal liability coverage for: –Repair, alteration & maintenance –Storage: ashore & afloat –Hauling & launching –Fueling –Pump Out

P&I and Hull Liability on the vessel Liability on the vessel Physical damage to the hull Physical damage to the hull Wreck removal Wreck removal

Pollution What Does a Pollution Policy cover? 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

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