This document discusses various insurance and risk issues related to the marine industry. It covers topics such as land and water contracts, construction and repair, ship repairers' pitfalls, design and manufacture, storage, charter, selling and supplying, marinas, on-water risk, protection and indemnity insurance, and services/marketing. The key points are that marine-related activities require specialized insurance due to risks on land versus water, and standard policies may not provide adequate coverage for activities like ship building, repair, storage, charter, or work done on vessels.

1. MARINEMARINE INDUSTRYINDUSTRY
Insurance / risk issues to beInsurance / risk issues to be
awareaware

2. Land and waterLand and water
contractscontracts
Construction / repairConstruction / repair
Ship repairers - pitfallsShip repairers - pitfalls
Design /manufactureDesign /manufacture
StorageStorage
CharterCharter
Sell / supplySell / supply
MarinaMarina
On water riskOn water risk
Protection and IndemnityProtection and Indemnity
Services / publication /marketingServices / publication /marketing
TOPICSTOPICS

3. LAND & WATERLAND & WATER
 Insurers differentiate betweenInsurers differentiate between “LAND”“LAND” risks and “risks and “WATER”WATER” risksrisks
 IF YOU ;IF YOU ;
 Work onWork on
 SellSell
 RepairRepair
 BuildBuild
 Supply forSupply for
 CharterCharter
 NavigateNavigate
 StoreStore
Anything that floats on water then you requireAnything that floats on water then you require specialistspecialist oror tailoredtailored
insurance.insurance.

4. CONTRACTSCONTRACTS
WATCH THAT “CONTRACT”WATCH THAT “CONTRACT”
Your accepting “risk” in a contract couldYour accepting “risk” in a contract could
invalidate your liability Policy. Liabilityinvalidate your liability Policy. Liability
insurance responds to ainsurance responds to a “default”“default” positionposition
at law. Yourat law. Your assumption of higher risk mayassumption of higher risk may
not be covered.not be covered.

5. CONSTRUCTION AND REPAIRCONSTRUCTION AND REPAIR
 BOAT / SHIPBOAT / SHIP BUILDBUILD IS DIFFERENT FROMIS DIFFERENT FROM REPAIRREPAIR
REPAIRREPAIR
If you repair boats in general or sub contract electricalIf you repair boats in general or sub contract electrical
,plumbing , furniture, masts etc a,plumbing , furniture, masts etc a standard public liabilitystandard public liability
policy may notpolicy may not provide protectionprovide protection or be limited byor be limited by
* size e.g. 8 meters* size e.g. 8 meters
* GRT 500* GRT 500
SPECIALIST SHIP REPAIRERS POLICY MAY BESPECIALIST SHIP REPAIRERS POLICY MAY BE
REQUIREDREQUIRED

6. SHIP REPAIRERS INSURANCE –SHIP REPAIRERS INSURANCE –
PITFALLSPITFALLS
 Standard policiesStandard policies may exclude ;may exclude ;
 Consequential lossConsequential loss
 Gas workGas work
 Storage onlyStorage only
 New buildsNew builds
 StevedoringStevedoring
 DebunkeringDebunkering

7. BOAT / SHIPBOAT / SHIP “NEW”“NEW” BUILDBUILD
SpecialistSpecialist BOAT BUILDERSBOAT BUILDERS POLICYPOLICY
NEEDEDNEEDED

8. DESIGN /DESIGN / MANUFACTUREMANUFACTURE
 Standard liability insurance is limitedStandard liability insurance is limited oror
non existent in regards tonon existent in regards to “design”“design” failure.failure.
 This need to be addressed by a specialistThis need to be addressed by a specialist
ProfessionalProfessional indemnityindemnity policy and / orpolicy and / or
Performance guaranteePerformance guarantee
(bond)(bond)

9. STORAGESTORAGE
 If you contract ‘STORE” boats then theIf you contract ‘STORE” boats then the
standard liability policy may bestandard liability policy may be restrictiverestrictive
whether by the Land verses water riskwhether by the Land verses water risk
test or the default position of custody andtest or the default position of custody and
control cover not covering “storage forcontrol cover not covering “storage for
contract”contract”

10. CHARTERCHARTER
Should you charter , you will have aShould you charter , you will have a
responsibilityresponsibility to the owner for :to the owner for :
 Damage to the boatDamage to the boat
 Damage to cargoDamage to cargo
 Injury to crew/ passengersInjury to crew/ passengers
 Third party damageThird party damage

11. MARINAMARINA
Marina operators can be exposed to a wide variety of risks:Marina operators can be exposed to a wide variety of risks:
 Own damage- land and floating assetsOwn damage- land and floating assets
 StorageStorage
 RepairRepair
 HaulingHauling
 FuelingFueling
 DockageDockage
 Third party ( at sea) riskThird party ( at sea) risk
AA HYBRIDHYBRID policy is available to cover these riskspolicy is available to cover these risks

12. ON WATER RISKON WATER RISK
 When on a vessel on water you cause damageWhen on a vessel on water you cause damage
toto third partythird party property or cause bodily injury –property or cause bodily injury –
specialist insurance is requiredspecialist insurance is required ==PROTECTIONPROTECTION
& INDEMNITY& INDEMNITY
 Those who require areThose who require are
 * charterers* charterers
 * marina operators* marina operators
 * boat /ship owners* boat /ship owners

13. PROTECTION * INDEMNITYPROTECTION * INDEMNITY
 Can be anCan be an extensionextension to your Boat/ ship policyto your Boat/ ship policy
( restricted) or underwritten by a( restricted) or underwritten by a specialistspecialist clubclub
( Insurer)( Insurer)
 Provides cover for third partyProvides cover for third party collisioncollision i.e. otheri.e. other
vessels –vessels – Bodily injuryBodily injury crew / passengerscrew / passengers
 Be aware if written with boat/ ship may not haveBe aware if written with boat/ ship may not have
pollutionpollution covercover

14. SELLSELL
 The main issue with selling a “maritime”The main issue with selling a “maritime”
product is theproduct is the standard public liabilitystandard public liability
policy maypolicy may excludeexclude oror limitlimit the “productsthe “products
extension” i.e. whatextension” i.e. what damagedamage thethe productproduct
does – because it is a maritime risk ( land/does – because it is a maritime risk ( land/
water test again )water test again )

15. Services / marketingServices / marketing
 Only real area here is the need forOnly real area here is the need for
professionalprofessional indemnityindemnity protection i.e.protection i.e.
negligence fornegligence for adviceadvice or a service and / oror a service and / or
defamationdefamation