Marina Dock Age, March 2004

Certificates of Insurance Go the Extra Mile in Marina Protection
By Mark Yearn

Responsible business owners take every precaution to protect their property against loss from fire, wind, and flood. They also provide their clientele with a safe environment, minimizing exposure to accidents or injuries. Typically, a business owner holds a policy that provides at least $1 million worth of general liability protection for bodily injury or property damage. Prudent marina managers purchase a marina operator’s legal liability policy to protect any property in his care that belongs to others. In addition, a worker’s compensation policy covers marina employees.

Most business owners stop there, thinking they have purchased all the insurance they need in order to properly protect their businesses. All too often, however, they have completely ignored the independent contractors, subcontractors, vendors, or manufacturers with whom they conduct business. Nor can they forget the boat owners who are leasing the slips.

Business guests on the property

In order to properly protect a business, one should obtain a certificate of insurance from each person, business, or tenant of the facility. This certificate should provide general liability protection, legal liability protection (which involves working on property owned by others), indemnity protection, automobile liability protection – including non-owned and hired car liability – and worker’s compensation protection, for limits equal to what one is purchasing to protect the public.

In addition, the following should be addressed:

• Specific businesses should be added as additional insureds. This is not unreasonable. This covers all liability arising out of the activities, premises, products, etc. of the businesses that are entering one’s property to perform a service.

• The scope of coverage should be outlined, or more importantly, any unusual restrictions of coverage should be described.

• A 30-day notice of cancellation clause should be included on each certificate.

Other specific provisions can be added to a certificate in order to meet particular needs. For example, evidence of pollution insurance with one’s business added as an additional insured may be required for specific jobs being performed.   Continue »