Purchasing insurance is one of the most important aspects of owning and operating a marina and can make the difference between success or failure if your business suffers costly damage.
When purchasing marina insurance, it’s vital to the health of your business that you fully understand the terms and make sure there are no gaps in the coverage that could leave you vulnerable in the future.
Many marina operators are tempted to insure floating buildings, that is, buildings on docks, under property forms that are typically used to insure dry-land properties instead of using dock coverage. While doing this will save you some money, it could put you in a pinch later on down the line if damage occurs to your floating property. Your claim could rightfully be denied solely based on the fact that dry-land coverage excludes floating property.
Another important aspect to consider when purchasing marina insurance is insuring to value. Even if you think you will never suffer a total loss, you still need to insure to at least 80% of value. Failure to do so could result in paying out thousands of dollars if you have to pay a portion of the loss. It’s not worth jeopardizing your whole operation just to save a little money.
By fully understanding what needs to be covered and how to properly do so, you can avoid costly pitfalls and save thousands of dollars in the long run.