Top Business Insurance for Marina Operators with NAICS Code 713930

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Get an overview of the most important types of business insurance for marina operators with NAICS code 713930 including general liability, property, workers compensation, commercial auto and more.

Key Takeaways

  • General liability insurance protects against third-party claims of injuries and property damage
  • Property insurance covers damage or losses to buildings, equipment, boats and infrastructure
  • Workers compensation covers medical bills and lost wages for employees injured on the job
  • Commercial auto insurance protects against accidents involving business vehicles
  • Business interruption insurance covers lost income during disruptions

Introduction

Operating a marina comes with unique risks that require specialized insurance protection. As a marina business owner, it’s important to understand the top types of coverage needed to protect your business financially. This guide outlines the most essential business insurances for marina operators with NAICS code 713930.

General Liability Insurance

General liability insurance provides essential protection for marina businesses against costly third-party claims. It covers a wide range of incidents from slips and falls to boating accidents and pollution spills that could threaten the finances and operations of these facilities.

In addition to basic injuries and property damage, general liability insurance for marina businesses specifically protects against claims resulting from damage or loss of customer boats, vehicles, or other property while under the business’s care. It also covers pollution or environmental impairment claims from business operations such as fuel leaks during refueling. Incidents involving the operation of marine repair, maintenance or other customer services are also protected.

Category List
Benefits
  • Protects your business from third-party claims of bodily injury or property damage
  • Covers legal costs if you’re sued for damages
  • Covers slips, trips and falls on your premises
  • Covers damage/injury caused by your products or completed work
  • Covers medical payments for injuries on your property regardless of fault
  • Protects against lawsuits from contractual agreements or promises made
  • Covers pollution incidents and cleaning costs on your property
  • Covers medical payments for injuries on your property regardless of fault
Use Cases
  • Protection against claims of property damage or bodily injury from customers or workers on the premises
  • Protection for liability claims resulting from damage or loss of customer boats, vehicles, or other property while in the business’s care, custody or control
  • Protection against slip and fall incidents for customers and visitors in common areas like docks, parking lots, walkways
  • Protection for libality claims from the operation of marine repairs, maintenance or other services for customers
  • Protection against pollution or environmental impairment claims resulting from business operations

Based on average data, general liability insurance for marina businesses in NAICS code 713930 typically costs between $1,000-2,000 annually. Rates are dependent on factors like number of slips, services offered, loss history, and safety measures in place. For a standard 50 slip marina offering basic services like fueling, sewage pump-out and limited repairs, an estimated annual premium would be around $1,500.

Estimated Pricing: $1,500

Property Insurance

Property insurance provides important financial protection for marina businesses against losses from unexpected events. It covers property, possessions, equipment and infrastructure in the event they are damaged, destroyed or stolen. This allows marinas to continue operating without disruption even after an insured loss.

Property insurance also protects marinas from liability claims if a customer or visitor is injured on the premises. It ensures boats, vessels and watercraft stored or parked at the marina are covered in case of sinking, fire or collision. Coverage is typically available for buildings, docks, piers and other structures against damage from natural disasters like hurricanes, floods and fires. Equipment, machinery and tools used in marina operations are also covered if damaged or stolen. Replacement or repair costs for infrastructure damaged in storms such as docks, piers and walkways are insured.

Category List
Benefits
  • Protection against property loss or damage from events like fire, theft, storms or accidents
  • Replacement cost coverage to repair or rebuild damaged property to its original condition
  • Liability coverage to protect your business from claims of bodily injury or property damage to others resulting from your operations
  • Coverage for equipment onboard boats like motors or electronics
  • Business interruption insurance to cover lost income if your business must temporarily close due to a covered loss
  • Protection for docks, buildings, or other structures on your marina property
  • Valuable papers and records coverage to replace important documents in the event they are lost or destroyed
  • Coverage for equipment onboard boats like motors or electronics
  • Business interruption insurance to cover lost income if your business must temporarily close due to a covered loss
  • Protection for docks, buildings, or other structures on your marina property
Use Cases
  • Protection against damage or destruction of buildings and structures from natural disasters like hurricanes, floods, fires etc.
  • Coverage for damage or theft of equipment, machinery and tools used in marina operations
  • Replacement or repair cost for docks, piers, walkways and other infrastructure damaged in storms
  • Liability protection in case a customer or visitor is injured on the premises
  • Insurance for boats, vessels and watercraft stored or parked at the marina in case of sinking, fire or collision

Based on industry data, the average annual pricing for property insurance for marinas with NAICS code 713930 is typically between $2 to $5 per $100 of insured property value. This rate is derived from consideration of factors like marina size, location exposure to natural disasters, security measures, number of boats stored or serviced, and claims history. For a typical medium sized marina with $5 million in insured property values, the estimated annual property insurance premium would be $10,000-$25,000.

Estimated Pricing: $10,000-$25,000

Business Interruption Insurance

Business interruption insurance provides critical protection for marina businesses against the risk of loss of income due to events outside of the business’s control. It covers costs like lost revenues, rent, utilities, and payroll during periods when a disruption prevents normal operations.

Marina businesses are especially vulnerable to interruptions from natural disasters like hurricanes, floods, storms and other weather events that can damage property and facilities. Events like fires or hazardous spills could also force temporary closure and loss of income. Without protection, recovering from these unplanned events would be challenging and threaten the long-term survival of the business. Insurance offers reassurance and funds to help marinas resume operations as quickly as possible after a covered disruption.

Category List
Benefits
  • Covers loss of income if your business operations are interrupted
  • Provides funds to continue paying operating expenses like rent, utilities, and employee payroll
  • Helps maintain cash flow if your business experiences an insured event like fire or weather damage
  • Protects you from financial issues caused by events out of your control
  • Reimburses you for extra expenses needed to resume operations, such as renting temporary workspace or equipment
  • Offers protection against loss from events you can’t control like earthquakes, storms, civil unrest
  • Allows you to avoid borrowing funds or dipping into personal savings to keep your business afloat during disruption
Use Cases
  • Loss of income due to damage to marina facilities from natural disasters like hurricanes, floods, etc.
  • Loss of income if the business has to temporarily close due to a fire on the premises.
  • Loss of income during periods that the business cannot operate due to mandatory evacuation orders during hurricanes or other natural disasters.
  • Loss of income if the business has to close access to the marina facilities due to hazardous conditions like oil spills.

Based on average business interruption insurance pricing for marinas and similar industries, the estimated price would be between 0.5-1.5% of annual revenue. This is calculated based on factors like location risks, property values, business operations, revenues, profits, and insurance company risk assessments. For a typical marina with $5M annual revenue, the estimated pricing would be $25,000-$75,000 annually.

Estimated Pricing: $25,000-$75,000 annually

Workers’ Compensation Insurance

Workers’ compensation insurance provides important benefits and protections for employees and businesses in the marinas industry. It covers medical expenses and lost wages for employees injured on the job, protecting the long-term viability of businesses by preventing expensive lawsuits. Some common tasks in marina operations like repairing boats, assisting customers, and facility maintenance often involve risks of accidents, so coverage ensures injuries are addressed. Pricing averages around $2.50 per $100 of payroll based on industry risk factors.

Category List
Benefits
  • Protects the business from lawsuits if an employee is injured on the job
  • Covers medical expenses and lost wages for injured employees
  • Mandatory in all states
  • Prevents expensive legal battles over who is at fault if an injury occurs
  • Provides peace of mind knowing employees are cared for if injured
  • Protects the long-term viability of the business
Use Cases
  • Covering employees injured while repairing boats or other equipment
  • Covering employees injured while assisting customers with their boats or performing other services
  • Covering employees injured while maintaining dock areas, landscaping, or other facilities
  • Covering employees injured while loading or unloading boats, equipment, or supplies

Based on national industry average data, the estimated average annual workers’ compensation insurance pricing for businesses in the marinas industry (NAICS Code 713930) is around $2.50 per $100 of payroll. This price was calculated based on the industry’s average total remuneration, employee hours worked, number of injuries reported, and average claim costs. The national industry average remuneration for this industry is around $35,000 per employee.

Estimated Pricing: $2.50 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance is an essential protection for marina businesses that rely on vehicles to transport boats, perform maintenance and repairs, and support other day-to-day operations. It provides important financial coverage and peace of mind in the event of accidents involving business vehicles used to transport watercraft, tow boats, perform deliveries, and support other business activities essential to marina operations.

Category List
Benefits
  • Liability protection from accidents and injuries
  • Physical damage coverage for your vehicles
  • Uninsured/underinsured motorist bodily injury coverage
  • Medical payments coverage for those injured while in your vehicles
  • Rental reimbursement if a vehicle is being repaired after an accident
  • Coverage for employees using their personal vehicles for work
Use Cases
  • Coverage for business vehicles like trucks used to transport boats, jet skis, etc.
  • Liability protection in case an employee gets into an accident while driving for work
  • Physical damage coverage for business owned vehicles in case of accidents, theft or other losses
  • Coverage for business deliveries including bringing supplies, equipment or fuel to boats
  • Hired and non-owned auto coverage for incidents involving rental vehicles or employees’ personal vehicles used for work

Based on research of average commercial auto insurance rates for marinas and boat related businesses, the estimated average annual pricing would be around $2000 per vehicle. This pricing takes into account factors like the types of vehicles (mostly trucks and vans), annual mileage, driver qualifications, safety records, and risk associated with operating vehicles around boats and water.

Estimated Pricing: $2000

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability coverage above and beyond what is included in standard commercial policies such as general liability, business auto and employers liability insurance. It protects a business’ assets and limits financial risks. Commercial umbrella insurance is especially important for marina businesses due to their greater exposure to liability risks from accidents and incidents related to boating activities and operations on the water. It helps protect against lawsuits and claims that exceed the limits of the underlying commercial policies as well as provide coverage for risks not covered under standard business insurance. Estimated pricing for umbrella insurance coverage for marinas is around $1.50-$3.00 per $100 of limits, above the primary general liability limits of $1 million.

Category List
Benefits
  • Protects against claims exceeding primary liability policy limits
  • Protects personal assets in the event of lawsuits
  • Covers certain risks like libel, slander and invasion of privacy not covered under commercial policies
  • Provides additional liability limits at affordable rates compared to increasing limits on primary policies
  • Covers legal defense costs which helps businesses avoid financial strain from lawsuits
  • Provides worldwide liability coverage which is important for marina operators with customers travelling internationally
  • Covers legal defense costs which helps businesses avoid financial strain from lawsuits
Use Cases
  • Protect against large liability claims that exceed the limits of the underlying commercial general liability policy
  • Provide additional protection for slip and fall accidents, boating accidents, and other incidents that occur on the marina property or due to their operations
  • Cover lawsuits from incidents related to fueling, maintenance, and repair services provided by the marina
  • Cover abuse or molestation claims against the marina
  • Protect the business owner and employees against personal liability exposures that arise due to their roles in operating the business

Based on typical pricing formulas for commercial umbrella insurance, businesses in the marinas industry (NAICS 713930) would on average pay around $1.50 – $3.00 per $100 of umbrella coverage, above their primary general liability limits, which are usually $1,000,000. This pricing is derived considering the industry risk level is moderate and premiums may vary depending on individual business operations and risk management practices.

Estimated Pricing: $1.50 – $3.00 per $100 of coverage

Crime Insurance (Employee Theft/Dishonesty)

Crime insurance provides protection for marina businesses against losses from employee theft, dishonesty and fraud. It reimburses costs associated with stolen property or cash, investigations, audits and other expenses resulting from criminal acts by employees. Crime insurance is especially important for marinas handling large sums of cash from boat repairs, fuel sales, and other services. Common risks include theft of boats, trailers or equipment by employees, as well as employee fraud, embezzlement, pilfering and sabotage due to opportunities for valuable assets and cash. Crime insurance can help protect the business from financial loss in these scenarios and provides coverage for unexpected events.

Category List
Benefits
  • Protects against financial loss from employee theft or fraud
  • Covers costs of investigation and legal fees related to employee theft
  • Reimburses direct losses from burglary, theft or robbery
  • Protects business reputation and customer loyalty
  • Provides peace of mind knowing your business is protected against employee crime
  • Covers losses from customer scams or identity theft
  • Covers supplementary expenses like hiring security or forensic accountants
  • Covers the cost of audits to assess and mitigate risks after an incident
  • Covers losses from accidental dishonest acts committed by employees
Use Cases
  • Theft of boats, trailers or other marine equipment by employees
  • Theft of cash or other valuables from retail sales or rentals by employees
  • Employee fraud or embezzlement such as shady accounting practices
  • Employee dishonesty such as pilfering of food, supplies or fuel for personal use
  • Sabotage or vandalism of boats or equipment by disgruntled employees

Based on typical pricing models for crime insurance, the estimated average annual price for a marina business with 20 employees and $5 million in assets would be around $4,500. This was calculated using factors such as number of employees, total assets, loss history, security measures in place, and policy limits/deductibles. Price can vary up or down based on individual business risk factors.

Estimated Pricing: $4,500

Commercial Boat/Watercraft Insurance

Commercial boat/watercraft insurance provides crucial protection for businesses operating within the marinas industry (NAICS Code: 713930). It shields companies financially from unexpected costs associated with accidents, damage, liability and other issues that could seriously impact their operations. Some key benefits of this insurance include replacing or repairing watercraft in the event of a total loss, covering medical expenses for injured passengers or crew, and protecting against costs of cleaning up fuel or oil spills. Pricing is estimated at an average of $5,000 annually for a typical marina with 5 boats ranging from 20 to 30 feet.

Category List
Benefits
  • Protects your legal liability in case of accidents or injuries to others on your watercraft
  • Covers physical damage to your watercraft including vandalism, weather damage and collisions
  • Reimburses lost income if your watercraft is out of service for repairs
  • Covers medical expenses for injured passengers or crew members
  • Replaces or repairs your watercraft if it’s a total loss
  • Provides coverage for business equipment and supplies onboard
  • Protects against fuel and oil spill clean up costs
  • Pays for fire damage to your watercraft
Use Cases
  • Protection against damages or losses to boats/watercraft owned by the marina that are used for charter, tours, lessons, or rentals
  • Liability coverage in case an accident or injury occurs involving a boat/watercraft operated by the marina’s employees or rental customers
  • Coverage for boats/watercraft stored at the marina in case of a fire, storm damage, or other peril

Based on industry data and the numerous factors that influence commercial boat insurance pricing such as size and type of boats, number of boats, prior claims history, safety features, and location, the estimated average annual premium for a marina business with 5 boats ranging from 20 to 30 feet would be around $5,000. This was calculated based on an average price of $1,000 per boat.

Estimated Pricing: $5,000

Equipment Breakdown Insurance

Equipment breakdown insurance is an important coverage for marina businesses. It protects against unexpected repair and replacement costs from failures of electrical, mechanical and pressure systems critical to marina operations.

Additional benefits of equipment breakdown insurance for marina businesses include covering additional expenses from equipment breakdowns that halt operations, covering loss of income during equipment downtime for repairs or replacements, and providing experts to help get operations back up and running quickly after a breakdown.

Category List
Benefits
  • Covers repairs or replacement costs for breakdowns of electrical, mechanical and pressure systems
  • Covers additional expenses like lodging, food and transportation if equipment breakdown halts operations
  • Covers loss of income due to equipment repair/replacement downtime
  • Covers sudden and accidental damage from an object falling onto covered equipment
  • Covers expenses related to property damage from an equipment breakdown even if the equipment itself is not damaged
  • Includes coverage for equipment in transit or at a storage facility
  • Provides access to experts who can assist with repairs or help get operations back up and running as quickly as possible
Use Cases
  • Protection against equipment failures like engine failures, electrical failures on boats and lifts
  • Covers the costs to repair or replace critical equipment like boat engines, docks, lifts and electrical systems
  • Covers losses from accidents like fires, explosions or mechanical breakdowns
  • Provides funds to hire technicians, pay for parts and rent backup equipment during repairs
  • Covers losses of income while equipment is down for repairs or replacement

Based on analysing typical equipment breakdown risks for marinas, average pricing for equipment breakdown insurance would be around $1.50-$2.00 per $100 of insured equipment value. The pricing is derived from considering common marina equipment such as docks, lifts, hoists that could suffer mechanical breakdown and their repair/replacement costs. It is also calculated based on the typical clientele of recreational boat owners at marinas.

Estimated Pricing: $1.50-$2.00/100

Conclusion

By obtaining the right mix of business insurance policies, marina owners can ensure their operations remain financially stable despite unexpected events. This provides greater peace of mind to focus on running the business smoothly. Maintaining comprehensive insurance is a smart risk management strategy for any marina business.

Frequently Asked Questions

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