Marina Operators Legal Liability

What Marina Operators Need to Know About Their Risks

Just as valets and body shops are responsible for the well-being of your vehicle while it’s on their watch, marina operators face a similar situation while harboring others’ vessels. What if guests vandalize an unattended vessel during the middle of the night? What if one of your forklift operators accidentally causes damage while putting a boat into storage? Marina operators face these risks every day. Fortunately, marina operators' legal liability (MOLL) coverage is there to help protect them from these incidents.

What is MOLL Coverage?

Put simply, MOLL coverage protects marina operators from damage done to vessels while in the marina’s “care, custody, and control.” This includes damage that was done while:

• Repairing, altering, or conducting maintenance (dry docking)
• Storing the vessel, whether on land or in water
• Hauling out or launching
• Fueling
• Test driving up to a certain radius from the marina
• Docking/mooring

MOLL coverage is typically offered only for private pleasure vessels, but coverage may be extended to commercial vessels if docked in your marina.

MOLL Coverage Exclusions

An important thing to remember about MOLL coverage is that typical marine liability coverage, commonly known as protection and indemnity (P&I), is excluded. P&I coverage applies to a wide variety of third-party liabilities that an owner, not a marina, is exposed to during a vessel’s operation. For example, injury, illness, or loss of life caused by a vessel’s operation (plus the associated medical expenses) and damage to other vessels or property caused by collision or other non-collision incidents (such as a storm) are part of P&I coverage. Other common exclusions include:

• Subcontracting repairs to a third party. Only repairs done by the marina are covered.
• Damage to vessels while being stored free of charge. Always charge for vessel storage and make sure the terms are included in the contract.
• Damage caused by insects, vermin, etc. It is the vessel owner’s responsibility to protect against this damage. However, take steps to ensure your marina is clean and free of areas where these critters congregate.

As always, we’re here to help. Contact the experienced independent agents at Williams Insurance Fullerton today to discuss how you can minimize your marina liability!