Marina Business Insurance
Getting business insurance for your marina is essential.
In their daily operations, marinas face numerous potential hazards.
There are various types of insurance available to address a range of potential dangers, such as financial loss, property damage, and bodily harm to customers, employees, and the general public.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Marina Business
General liability insurance is — generally speaking — one of the most important insurance policies for marinas.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Although general liability insurance is designed to cover a wide range of risks, it may not provide coverage for all the risks that your marina is exposed to. In such cases, you may need to obtain specialized policies that offer coverage for these specific risks. Some examples of these policies include:
- Commercial property coverage: This type of insurance covers damage to the marina's property such as buildings, docks, and other structures, as well as equipment, boats, and other vessels that may be on the property.
- Environmental Liability Insurance: This type of insurance protects the marina from claims related to environmental damage or pollution caused by the marina's activities, such as fuel spills or other environmental accidents.
- Workers' Compensation Insurance: This type of insurance is required by law and provides coverage for employees who are injured or become ill while working at the marina. It covers medical expenses, lost wages, and other related costs.
Provision of business coverage generally means choosing between the following two types of insurers:
- Traditional brick and mortar insurers: Traditional insurers, such as Allstate and Liberty Mutual, involve many human operatives in processing claims, which may add time and cost to procedures.
- Online insurers: Insurtechs use automation and data analytics to speed up the claims and policy creation process, reducing the time it takes for customers to receive payments and set up their insurance. Automation and low overhead also allow for lower premiums.
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Cost of General Liability Insurance
The average marina in America spends between $400 - $700 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a marina business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
Find the Best Rate
Discover the best coverage at the lowest rate in our affordable business insurance review.
Common Situations That General Liability Insurance May Cover for a Marina Business
Example 1: As a visitor rushes to her boat, she slips and breaks an arm. She demands you pay for her medical treatment because you did not display any warning about the slippery surface. General liability insurance would cover her medical bills.
Example 2: While filming a promotional video, an employee’s camera equipment starts an electrical fire that ultimately burns several boats. General liability insurance would cover the cost to repair or replace your customers’ boats.
Example 3: As an employee pushes a dolly filled with cleaning supplies around a corner, she accidentally hits a visitor. The resulting fall breaks the visitor’s tailbone, and he decides to sue. General liability insurance would pay for your legal fees and any damages awarded in a settlement.
Other Types of Coverage Marina Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability benefits stemming from a work-related accident.
Commercial Property Insurance
You’ve made major investments in the equipment needed to run your marina. Commercial property insurance would cover the cost of replacing that equipment after a fire or other natural disaster so your business can recover quickly.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Business Interruption Insurance
If a fire, tornado, or other incident forces you to temporarily close, business interruption insurance would help cover your financial losses until you can reopen. You can usually purchase business interruption insurance as part of a business owner policy or BOP.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your marina business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Marina Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
In general, yes. A marina is likely to face various risks during its daily operations, which may even manifest before the business officially starts. These risks can include property damage, bodily injury, and financial loss, and they are always present. This makes business insurance crucial. Additionally, specific types of insurance are mandated by state laws.
Not necessarily. Certain exceptions may be written directly into your marina business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.