5 Insurance Coverages Every Harbor Master Should Know

1. 5 Insurance Coverages Every Harbor Master Should Know

2. Does anyone know how insurance started? • Edward Lloyd’s 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

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

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

5. 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

6. 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

7. 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

8. 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?

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

10. 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 doesn’t have insurance or doesn’t have enough insurance, the harbor is going to end up getting involved.

11. 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?

12. 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

13. 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

14. Ship Repairer’s 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

15. Who Needs Ship Repair’s 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

16. Wharfinger’s 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

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

18. Terminal Operator’s & Stevedore’s Legal Liability • Terminal Operators – Damage to property stored such as cargo, containers • Stevedore’s - 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

19. 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

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

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

22. 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

23. 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