The marine industry, which has grown to be worth over 4 billion annually, is an industry that continues to expand, and with that growth comes substantial exposures due to some significant advancements, and new business ventures that require additional insurance coverages. As most marina industry manufacturers understand, they have a duty to ensure that the products they sell are tested and approved. But many parts and equipment that are faulty may still end up being passed on to consumers and the risks can have deadly consequences.
Suppliers of marine machinery and equipment, including items such as navigational equipment, marine engine parts, diesel engines, compressors, pumps, boilers, heat exchangers, generators, winches, filters, lifeboats, chains and anchors, and more, can certainly see the concern if any one of these items should fail upon installation or usage.
They now, more than ever, need to protect the assets of their companies.
Even with the best business strategy in place, and employees who are trustworthy and diligent in their duties, there are still those ever-present dangers, which can be costly and time consuming.
Sound insurance solutions are available
Independent agents who offer marine manufacturers insurance, seek to leverage their specialization and help these businesses by helping them analyze their situations and come up with sound insurance solutions. A bumbershoot policy is a type of umbrella coverage designed specifically to insure marine risks. Shipyards often use this type of policy, which provides protection and indemnity coverage as well as liability protection under the Longshoreman and Harbor Workers’ Act.
These types of policies are generally written to provide coverage above the limits of primary liability policies and provide certain coverages when the underlying primary policy does not afford the required protection. These policies are underwritten with the intent of providing protection in the event of a catastrophic loss event, providing broader coverage than a typical excess policy and will drop down above a certain self-insured retention (SIR) to provide any additional coverage needs.
An SIR differs from a standard deductible in that the coverage afforded stacks above the SIR and the insured is typically liable to pay the damage and expenses up to the full amount of the SIR before the policy limits kick in. They must also pay a deductible, (which is usually taken off of the total amount of damage and expense upon conclusion of the case) which is then reimbursed to the insurance company.
Manufacturers of equipment for boats and other watercraft can only benefit from having marine manufacturers insurance and should speak to a reputable agent today.