40 | WATERLINE December 2025 INSURANCE DUTY OF CARE AND MARINA INDEMNITY COVER By Lyndon Turner, CEO Nautilus Marine Insurance Lyndon Turner, CEO Nautilus Marine Insurance addresses two common questions from marina managers and operators about insurance responsibilities and liabilities. These issues are often misunderstood until an incident brings them into focus. CARE, CUSTODY AND CONTROL When does a marina’s responsibilities shift from providing a berth to having custody and control of a vessel? Marinas provide berths, facilities, many including lifting and storage services, yet vessels remain the property of their owners. The question is: when does a marina’s duty of care begin and end? “The key question is whether the marina has taken care, custody and control of the vessel,” says Lyndon Turner, CEO Nautilus Marine Insurance. “Generally, responsibility lies with the boat owner, who should maintain insurance to protect against damage and liability arising from the use or storage of their boat. But this changes once the marina handles the vessel, for example, when it is being moved between berths, lifted, or stored ashore. At that point the marina holds a responsibility where they have taken custody and control.” This responsibility can often be misunderstood. “Even moving a vessel within the same marina for operational reasons means the marina has taken a level of control, due to the commercial nature, fees are charged for services to non-owned craft” says Turner. “Protection can be provided through the marina’s liability coverage.” “Obligations under a berth holder agreement, are that the boat should be insured, and that insurance must be current and sighted by the marina,” says Turner. “This requirement should be included in the berthing terms and conditions. If something goes wrong, that documentation will be tested. If marinas are unsure about the adequacy of specific policies, they should seek expert advice from their insurance advisor or broker.” MARINA INDEMNITY COVER Is third-party only insurance sufficient for berth holders? Many marinas require berth holders to have at least third-party liability insurance. Turner warns that this may be inadequate in serious incidents such as a sinking in the berth. “Third-party policies usually cover liabilities arising from use of the boat, such as damage to others’ property or injury, but not damage to the boat itself,” says Turner. “That can be a problem if the vessel sinks.” Here’s a scenario to consider. “Imagine a poorly maintained vessel sinks in its berth,” says Turner. “The marina must act immediately, deploying booms, hiring salvage teams, and removing debris. If the owner has only third-party cover, their policy may not cover those costs. The marina might be left chasing the owner or carrying those expenses until recovery.” Such events can also test the marina’s own policies. “A good marina indemnity policy will respond to the marina’s legal liability,” says Turner. “However, it may not necessarily cover every incidental cost, particularly when the vessel owner’s insurance is inadequate. That is why marinas should consider requiring comprehensive cover for all berth holders.” BEST PRACTICES FOR MARINAS TO CONSIDER IMPLEMENTING 1. Set minimum insurance standards. Marinas can recommend (or require) berth holders hold comprehensive insurance coverage to reduce the risk of uninsured losses and costly disputes. 2. Work closely with your insurance advisor or broker Ensure your marina’s policy aligns with the requirements imposed on berth holders. 3. Check certificates of currency Verify them annually or at berth renewal. 4. Keep accurate records Digital storage makes it easy to confirm compliance quickly if a claim arises. “It is about risk mitigation,” says Turner. “Setting the right requirements at the outset protects everyone, including the marina, the insurer, and the boat owner.” PRACTICAL STEPS FOR MARINA MANAGERS Well-run marinas should follow consistent risk management practices: • Review berthing terms and conditions and clearly define each party’s obligations. • Communicate expectations early, do not wait for a claim to expose gaps. • Audit berth holders’ insurance and set a schedule to ensure policies remain valid. • Refer to MIA’s guidelines and training resources. • Engage proactively with your insurer and broker. “Risk management is not about catching people out,” says Turner. “It is about ensuring the marina, berth holders, and insurer are aligned before there is an incident.” Care, custody and control, and berth-holder indemnity requirements may seem like legal fine print, but they have real world consequences. A lack of clarity or inadequate cover can leave marinas exposed to costs and disputes when incidents occur. By setting clear insurance requirements, verifying coverage, and understanding where responsibilities lie, marina operators can streamline claims, reduce financial risk, and maintain smooth operations even when things do not go to plan. “Clarity upfront is the best form of protection,” concludes Turner. “It is far better to ask the hard questions now than to discover after a sinking or damage claim that the cover was not there.” Disclaimer: Content is information only, it is not financial advice and does not take into account your objectives, financial situation or needs. Pelican Waters Marina
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