Commercial General Liability insurance covers land-based construction projects. The paperwork for these policies generally outlines a list of exclusions, including any work done onboard ships, docks, or piers.
That is why it is essential to make sure you have a Marine General Liability policy. One major area of concern for a marine risk is the coverage for care, custody, and control. This coverage is critical for ship repairers, especially and is a standard coverage on an MGL policy.
Marine General Liability policies are designed specifically for those who work on vessels, docks, and ports. These policies include coverage for Marine Contractors, ship repairers, and others who work on or near water.
However, There Are Complications
Frequently contractors that work as welders or carpenters have projects to complete on ships or ports. Since their normal works are land-based, they likely carry commercial general liability insurance. Most will not realize that their current policy does not cover work that do on a boat or dock. In addition, most shipyards, vessels or ports aren’t going to check and make sure the contractor has the correct insurance. This is where problems can arises since the contractor will not have the right coverage if there is an event of loss or an accident.
To ensure you have the right policy, it is important to work with an insurance partner who understands your business operations. Otherwise, you might not have the coverage you need.