28 | WATERLINE July 2026 LEGAL LINES RISK ON THE WATERFRONT By Tim Smith, Principal McInnes Wilson Lawyers Picture this: a straddle carrier operator misjudges a turn, clips a neighbouring vessel, and sends a $150,000 sailboat crashing into the dock. Within hours, you've got an angry boat owner, a damaged slip, and a potential lawsuit. Sound far-fetched? For marina operators, scenarios like this aren't hypotheticals, they're Tuesdays. Running a boatyard means managing a lot of moving parts: heavy machinery, fuel, water, and constant foot traffic. All of that creates serious legal exposure. While many operators assume their contracts will offer protection, those agreements are often inadequately drafted or not properly followed, leaving critical gaps when things go wrong. Here's what you need to understand to protect yourself. YOU OWE PEOPLE A DUTY OF CARE Anyone lawfully on your property, boat owners, their guests, contractors, and staff are owed a reasonable standard of care. That means your docks, walkways, hoisting equipment, and machinery must be properly maintained and safe to use. The law doesn't expect perfection. It expects reasonableness. The question a court will ask is: what would a sensible marina operator have done? If you can show regular inspections, maintenance schedules, and prompt repairs, you're already in a much stronger position. This is where well-drafted contractual arrangements become critical. Service agreements, contractor terms, and berth or storage contracts can clearly allocate responsibilities for maintenance, set safety standards, and require compliance with procedures. When supported by consistent record keeping, these agreements help prevent incidents and provide evidence that a reasonable system was in place if something goes wrong. OPERATING YOUR EQUIPMENT CAN BE A LIABILITY RISK Forklifts, travel lifts, cranes, and hydraulic trailers are the backbone of any boatyard operation. When an equipment related incident occurs, liability will usually turn on three key questions: was the equipment properly maintained, was the operator adequately trained and supervised, and were reasonable safety precautions in place? If you can answer “yes” to all three, you are in a far stronger position to defend a claim; fall short on any one, and your exposure increases significantly. Where outside contractors are involved, such as independent mechanics or third-party haulers, the position should be reinforced through properly drafted contractual arrangements. Those agreements should include clear indemnities and require contractors to carry appropriate public liability insurance (often in the order of $20 million), ensuring that risk is appropriately allocated and that there is a viable avenue of recovery if something goes wrong. YOUR STORAGE AGREEMENTS CAN PROTECT YOU Your ability to manage risk depends heavily on the quality of your contractual arrangements. Storage agreements, contractor terms, and indemnities should not be treated as fixed documents. They must be reviewed and updated regularly to reflect how your marina operates. Too often, operators rely on agreements that are outdated or no longer aligned with current equipment or risk exposure. When something goes wrong, those gaps become apparent very quickly. Many marina operators rely on storage and dockage agreements to limit liability, but those provisions are only as effective as their drafting and implementation. Courts have repeatedly refused to enforce poorly drafted or inadequately incorporated clauses, leaving operators exposed despite believing liability had been capped. In practical terms, when an incident occurs, the protection you expect may not be there. Regular legal review is essential. An agreement that was enforceable five years ago may no longer meet current standards. A well-drafted contract is only effective if it is current, properly implemented, and consistently applied. INSURANCE Insurance is a critical layer of protection, particularly given the risks inherent in boatyard operations. Incidents involving heavy equipment, vessel handling, fires, or environmental damage can expose marinas to significant liability. Marinas should ensure their own policies respond to key operational risks, including: • equipment-related incidents (e.g. travel lifts, forklifts, cranes) • damage to vessels during storage, handling, or movement • public liability exposure for injury to third parties • clean-up costs, including fuel, pollution, and environmental damage • business interruption where operations are disrupted Your contractual arrangements should also require vessel owners and contractors to maintain appropriate insurance, including: • adequate public liability cover (commonly $20 million) • cover for damage to third-party property and environmental risks • policies issued by reputable insurers • provision of current certificates of currency on request However, insurance alone is not enough. Policies must reflect your actual operations and work alongside your contractual risk allocation. When properly aligned, insurance supports your overall liability position. If you have any queries or need assistance in reviewing any of your commercial agreements, please do not hesitate to contact Tim Smith (07) 3231 0628 tsmith@mcw.com.au STRADDLE CARRIER OPERATIONS & MAINTENANCE COURSE (SCOM) MIA Members $1900 | Non-Members $2250 (ex gst) Designed for marine personnel who want to master the safe and efficient operation of straddle carriers used for lifting, moving, and standing vessels in a marina or boatyard environment. Hands-on, two-day course equips participants with the skills and knowledge necessary to operate and maintain straddle carriers. Course Content: • Health & Safety: Safe operation of straddle carriers in a boatyard environment. • Maintenance & Pre-Start Checks: Regular machine maintenance, service, and safety checks. • Slings & Vessel Standing: Correct use of slings, stands, and blocking techniques. • Machine Operation & Communication: Efficient operation and communication during vessel handling. • Lifting & Returning Vessels: Best practices for lifting, standing, and returning vessels to the water. • Vessel Structure & Lifting Techniques: Understanding basic vessel structure and how to lift and stabilise vessels safely. marinas.net.au education@marinas.net.au
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