Marina operators manage various risks on a daily basis, from docking vessels to providing storage and repair services. These responsibilities come with inherent liabilities, making specialized insurance coverage a necessity within this industry.
Marina Operators Legal Liability (MOLL) insurance offers essential protection for businesses operating in this unique environment. This blog will break down everything you need to know about MOLL coverage and its significance.
Table of Contents
What Unique Risks Do Marina Operators Face?
Much like valet services handle the responsibility of parked vehicles, marina operators are accountable for the vessels under their care. The sheer price of an average vessel creates unique, major challenges for marina operators. Potential risks include:
- Natural Risks: Storms and other environmental hazards can damage vessels.
Data from NOAA highlights that coastal storms have caused billions of dollars in damage annually.
- Equipment Failures: Malfunctioning equipment such as lifts or cranes can cause accidental vessel damage.
- Vandalism: Boats left unattended may fall victim to theft or damage.
The day-to-day operations of a marina comes with inherent risks, making comprehensive insurance coverage not just helpful but a necessity.
What Does Marina Operators Legal Liability (MOLL) Cover?
MOLL insurance protects marina businesses from financial loss caused by damage to vessels in their care, custody, and control.
The recreational boating industry in the U.S. had an annual economic impact of $170.3 billion in 2022, highlighting the significant financial stakes in the marina industry.
Whether a vessel is being docked, stored, repaired, or fueled, marina operators carry a heavy responsibility. With this coverage, these businesses are shielded against liabilities arising from incidents such as:
- Damage while hauling or launching vessels.
- Accidents during storage, either on land or in water.
- Mishaps during dueling or test driving.
Importantly, MOLL insurance typically applies to private pleasure vessels, though coverage sometimes extends to commercial vessels, depending on the specific policy terms.
What Are the Key Exclusions of MOLL?
It’s equally important to understand what MOLL does not cover. One significant exclusion involves damage caused by third-party subcontractors. For example, if repairs are subcontracted, the liability falls on the subcontractor, not the marina operator.
For boat builders who may work with marinas but require their own specialized coverage, our blog on Boat Builders’ Insurance offers valuable insights on tailored insurance solutions.
Another limitation pertains to boats stored without charge. Any free storage arrangements are excluded from MOLL coverage, meaning operators should always enforce clear contracts and appropriate fees for storage services.
Finally, MOLL does not replace Protection & Indemnity (P&I) insurance. P&I coverage is crucial for addressing operational liabilities, such as injuries, illnesses, or damages caused by the vessel itself during its use.
How Can You Enhance Your Coverage?
While MOLL acts as a strong safeguard against liabilities faced by marina operators, it may not address all risks. To close these gaps, marina operators should consider supplementing their policy with additional protections:
- Bumbershoot Insurance: A highly recommended umbrella policy that extends coverage beyond standard marine liability, offering additional protection for unforeseen circumstances like catastrophic events or large liability claims.
- Environmental Liability Insurance: A vital layer of coverage, particularly for marinas that handle fuel storage and vessel fueling. This policy ensures you are protected against the financial and legal repercussions of pollution-related incidents.
By combining these policies with MOLL coverage, you can build a robust risk management strategy and insurance portfolio that protects your marina from various operational road bumps.
Ready to Safeguard Your Marina Operations?
Failing to include MOLL insurance in your risk management strategy can increase the risk of significant financial loss in the event of accidents or damages. This specialized policy not only protects your business but reassures your customers’ vessels are in good care.
At Biscayne Risk, our team of insurance professionals are here to help you mitigate risk and operate with confidence. Please contact us today to learn more about our specialized, tailored insurance solutions to help safeguard your organization.