Page 40: of Marine News Magazine (February 2019)

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RISK

Insuring the Maritime Hustle and Bustle vessels, but their vessels are restricted in navigation, often

Situational awareness has always been a key component in working at a fxed location (such as a bridge) while us- navigating any vessel. But, given the increased traffc and ac- ing specialized vessels and equipment. They often work tivity in and around our waterways, it’s an even bigger com- around the clock, which increases their collision exposures ponent of any marine business’ risk management strategy. signifcantly. Conditions can change quickly, such as when

Expansion activities create many exposures for mari- adverse weather storms in. time operations. For the marine insurance industry, the Given the hazardous nature of marine contracting work, challenge is to develop products that address marine con- it’s essential to have comprehensive insurance protection struction’s unique risks. We need to make it as easy as pos- that directly addresses their diverse, day-to-day exposures. sible for businesses to buy appropriate coverage, and avoid Contractors’ insurance often consists of such coverages as: gaps in their coverage that could expose them to out-of- • Marine General Liability includes coverage for pocket fnancial losses. products and operations liability for work performed from watercraft.

Taking on Builder’s Risk • Marine Contractors’ Liability provides coverage

Builder’s risk is a key coverage for marine operations. As for property damage to marine structures.

America’s vessel feet ages and retires, Boat Builder’s Risk • Commercial Hull and Protection & Indemnity can insure new vessels under construction and during trial (P&I) protect vessel owners against physical damage runs. Vessels constantly undergo repair and maintenance, to the ship and legal liability.

for which Ship Repairers Legal Liability insurance applies. • Bumbershoot (umbrella) provides excess liability

The inland marine insurance industry provides Builder’s coverage for companies with major marine exposures.

Risk coverage for a wide range of buyers including general Such policies cover both non-marine and maritime contractors, owners, developers, and specialty trade con- liability exposures—that is, protection and indemnity, tractors. Some carriers offer very inclusive Builder’s Risk general average, collision, general liability hazards, and Installations coverage that can be further tailored with among others.

endorsements. Endorsements allow businesses to adapt in- • Contractor’s Equipment coverage provides protection surance to their project needs, including: for equipment including borrowed, leased or rented • Green Coverage equipment, contract penalty, employee tools and • Contingent and Difference in Conditions work clothing. • Rigger’s Liability • Property includes insurance for buildings, contents, • Existing Buildings or Structures and business interruption.

• Soft Costs, Business Income and Extra Expense • Auto can also be packaged with the marine • Permission to Occupy contractors program.

• Equipment Breakdown • Flood, Earthquake and Volcanic Eruption Safeguarding Workboats

Workboats are an essential part of marine operations,

Available coverage also includes protection from vari- especially in today’s busy maritime environment. They able costs that are often overlooked, such as an increase in represent many different types and sizes of vessels that are construction costs, site preparation, extra and expediting used for a wide range of tasks. These include maintaining expense, contract penalty, rewards, reimbursement for re- waterways, assisting with launches at a marina, perform- turning stolen property, loss adjustment expense, ordinance ing dock inspections, and carrying out a host of other du- or law, fre department service charges or expenses related ties. Given increased activities everywhere from marinas to to debris removal, pollution cleanup, among others. ports, their workloads are increasing and consequently, so are their risk exposures.

Contractor Coverage Challenges While these boats may be smaller in stature, they still

While Builder’s Risk protects projects under construc- have signifcant exposures, including the risk of third party tion, those businesses actually carrying out the construc- liability or hull damage from an accident or natural ca- tion work have their own unique risks to address. Marine tastrophe. Fortunately, workboat owners can purchase in- contractors share the waterways with a growing volume of surance on a standalone basis or as part of an integrated

February 2019 40 MN