FALL 2014 | MARINE TECHNICIAN TODAY
17
I
n the world of small business insurance, many businesses
share a number of common exposures to loss that we have
discussed in prior AMTECH articles. Workers Compensation
is one. Also, general liability insurance in the event someone
falls on your premises or is injured by your completed work.
Business auto insurance is another example of insurance
coverage that many businesses may need, even if they don’t own a
business auto.
One type of insurance that is unique to the marine industry, which
is often overlooked by both business owners and even by some
insurance professionals, is Protection and Indemnity Insurance,
commonly referred to by the abbreviation “P&I.” Most marine
technicians may be tempted to go out and ask their local agent to
provide them with a small business insurance policy to insure their
repair and/or sales operation. They ask for something to, perhaps,
“cover the shop” and something “in case I get sued.”
Unfortunately, that cookie-cutter Business Owners Policy (often
called a “BOP” by insurance professionals) doesn’t always have
the flexibility to cover the unique exposures to loss faced by
marine technicians. The insurance policy might fit just right for
an auto mechanic, but it does not fit you. The reason for this is
that you have one specific exposure that a typical “BOP” won’t
cover, and that is the exposure of watercraft liability. Not many
main street business owners travel on the water as part of their
business, but oftentimes, as a marine technician, you do. Or you
certainly might.
Even if you do not own your own watercraft in the business name,
the majority of you probably have driven a boat as part of your
business operations. A test drive during or after a repair is a perfect
example, or perhaps you have even jumped in and agreed to pick
up or deliver that customer’s boat right to their dock? No matter
what the service, if you step foot on a boat and plan to operate
it (even sitting at the dock!) then you need to have Protection &
Indemnity insurance. It is not expensive, unless maybe you own
your own rental fleet. And even then it is not cost prohibitive.
So before you cast off and take a quick spin around the lake or
harbor in your customer’s boat you should make sure you have
watercraft liability coverage, or P&I, as part of your business
insurance program. You can obtain $300,000, $500,000 or even
$1million in coverage for a very small annual cost. That will protect
you from a possible lawsuit if you injure someone or damage
another boat or someone’s property while you are waterborne.
Also recall, from our earlier articles, that you also need Marine
Operator’s Legal Liability (MOLL) to protect your customer’s boat
while it is in your care, custody and control. If stolen from your
yard, or even damaged on a test drive, your customer’s boat is
covered by MOLL while you have possession of it and are liable for
it. Again, do not rely on an “off-the-shelf” auto garage insurance
policy. Their insurance coverage, which is called Garage Keeper’s
Legal Liability, only covers customer’s “autos.” It never mentions
watercraft. Talk to an insurance professional that is familiar with
boats and marine insurance and ask if they have experience and
have underwriting contacts in the marine insurance field before
you simply buy business insurance. And if your actual insurance
policy says “Business Owners Policy” or “Garage Policy,” ask your
insurance agent if that policy is really right for you, or find yourself
a new agent.
And don’t ever hesitate to contact us for advice or assistance
at (800) 491-5347.
COVER YOUR ASSETS
.
Protection & Indemnity Insurance
What Is It? And Why You Need It.
Stafford & Co. Insurance are the Endorsed Insurance Professionals for AMTECH.
By James Kay, CIC, CRM
