Marina Property Risks Need Careful Scrutiny

PAG E 4 Marina Property Risks Continued 800.382.2468 | AdjustersInternational.com Sheila E. Salvatore, Editor | Editor@AdjustersInternational.com | 126 Business Park Drive | Utica, NY 13502 Copyright © 2018 Rising Phoenix Holdings Corporation. All Rights Reserved. Adjusters International and the AI logo are registered trademarks of Rising Phoenix Holdings Corporation. E01-1016 Insights for Your Industry® is published as a public service by Adjusters International, Inc. It is provided for general information and is not intended to replace professional insurance, legal and/or financial advice for specific cases. PROTECTING YOUR PROPERTY ® Clearly, where necessary, marinas must upgrade their electrical systems tomeet the latest maritime electrical codes (which are different from the codes that apply on land) and carefully monitor the use of electricity by boaters, both for fire safety and to prevent casualties from electrical mishaps. Environmental Issues Environmental liability is“the most obvious area of growing exposure” for marinas, Cicala said in an interviewwith Insights for Your Industry. Today, he says, even the simplest of spills can lead to costly cleanup, thanks to heightened awareness of the interconnectedness of water systems. This scrutiny adds urgency to the task of removing and disposing of wrecks. Previously, if an abandoned wreck was not obstructing traffic, the timing of its removal was largely a business decision. Under the right circumstances, it might be put off until after the close of boating season. That’s unlikely today, says Cicala. If a wrecked boat were to leak fuel, waste water, or any other contaminant, marina operators can expect an“aggressive” response by multiple jurisdictions employing expensive resources to clean and contain the spill. Along the same line, Cicala is watching the public response to “invasive species,” the introduction of non-native plants and animals into an ecosystem, often through the discharge of ballast water from vessels at marinas. In the absence of predators or grazers, invasive species can thrive and disrupt an ecosystem. Importance of Riskmanagement Any idea that operating a marina is as an easy-going occupation spent in a hammock with a cool drink has never beenmore off the mark than today. The growing property and liability exposures facingmarinas make it more imperative than ever that marina operators establish andmaintain a comprehensive risk management programgrounded in best practices for marina management. Those that don’t are clearly putting their livelihoods at risk. “[As] for insurers that underwrite marina operators’property and liability exposures, risk mitigation requires a thorough understanding of the dynamics of the marine environment and appropriate use of insuring agreements,”Cicala writes. ____________________ 1 Jeanne Williams, Clean Marina Coordinator, Florida Department of Environmental Protection, “Clean Marina Program, Clean & Resilient Marinas, Clean Vessel Act,”Nov. 1, 2017; accessed at https://floridadep.gov/ sites/default/files/NWD%20Clean%20Marina%20with%20Resilient%20-%20Vessel%202017.pdf 2 Conte Cicala, “Marine Risks Complicated by the Nature of the Business,” Clyde & Co., November 2017; accessed at https://www.clydeco. com/blog/insurance-hub/article/marina-risks-complicated-by-nature-of-the-business 3 James D. Shafer and Capt. David E., “Electric Shock Drowning Incidents – Marinas,” Rifkin Quality Marine Services, LLC, revised Oct. 16, 2017; accessed at http://www.electricshockdrowning.org/uploads/ 4/8/5/6/48564375/esd_list_-_updated_10.17.17.pdf

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