Insurance Advice for Marinas & Shipyards

McDermott Costa Insurance Brokers offers risk-reducing advice to marinas & shipyards regarding third party vendors

 

Third party service providers can pose serious risk and liabilities for marina and shipyard owners. Without the proper due diligence these marine companies could find themselves footing large bills should a dispute occur.

 

As a California insurance agency that specializes in ocean marine insurance for boat yards, marinas, yacht clubs, and commercial boating vessels/fleets, McDermott Costa Insurance Brokers also educates clients about best practices for reducing risk.

 

A third party service provider is any vendor that provides services either to the marina or customers that use the marina. Third parties include repair services, vessel cleaning services, yacht brokers, surveyors, etc. In the summer, marina owners can expect to see more third parties on the premises, therefore need to be aware of the risks associated with them.

 

Those risks include:
    •        Third party injuries sustained due to the actions of marina staff or customers using the marina.
    •        Staff or customer injuries sustained due to the actions of the third parties.
    •        Property damage sustained due to the actions of the third parties or vice versa.

 

One important way to mitigate risk involved with third parties is to draft an agreement or contract with a third party that clearly identifies the obligations of both parties and sorts out how to transfer risk should a liability arise. Effective agreements require third parties to have workers compensation and liability insurance and to add the marina as an additional insured.