5 Insurance Coverages Every Harbor Master Should Know

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					5 Insurance Coverages Every
Harbor Master Should Know
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
          The 5 Coverages

• Marine General Liability
• Care, Custody & Control policies
• P&I and Hull
• Pollution
• Miscellaneous others
    How do you Manage Risk?

• Avoidance
• Loss Prevention
• Transfer of Risk
• 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.
• It is NOT coverage for
  – Expected or intended injury
  – Watercraft
  – Pollution
      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
• 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
• 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
• Security Issues
  – What are the duties of the night watchman?
  – Do you restrict access to the harbor?
• 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
• 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.

• 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?
      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
           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
  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
• 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
   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
• 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
           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
• 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
Marina Operators Legal Liability

• Provides legal liability coverage for:
  – Repair, alteration & maintenance
  – Storage: ashore & afloat
  – Hauling & launching
  – Fueling
  – Pump Out
             P&I and Hull

• Liability on the vessel
• Physical damage to the hull
• Wreck removal
• 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
  – 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