Beyond Traditional Markets: How Marine Surety Secured Coverage for a High-Risk Coastal Marina Operation

When a large coastal marina facing multiple insurance declinations approached Marine Surety (www.marinesurety.com), they were at a critical juncture. With over 300 boat slips, a fuel dock, and extensive repair facilities located in a hurricane-prone region, standard market carriers had consistently declined coverage renewal due to past weather-related claims and evolving environmental liability concerns. This case study examines how Marine Surety's expertise in surplus lines placement provided a comprehensive solution when traditional markets wouldn't. The Challenge The marina operation presented multiple complex risk factors that made standard carriers uncomfortable. Located along the southeastern seaboard, the facility had sustained $2.8 million in hurricane damage over the previous five years. Additionally, their fuel dock operations and boat repair services created significant environmental liability exposures. Traditional carriers were particularly concerned about: - Multiple weather-related claims history - Aging dock infrastructure requiring updates - Fuel storage and dispensing operations - Marine repair facility pollution exposure - High-value vessels under care, custody, and control Traditional Market Limitations Standard market carriers cited several specific reasons for declining coverage: - Claims frequency exceeded standard market appetite - Environmental liability exposures exceeded standard program capacity - Location in a Tier 1 wind zone - Aggregate exposure concentration concerns - Limited appetite for marine repair operations The Marine Surety Approach Marine Surety's team conducted a thorough analysis of the marina's operations, risk management protocols, and claims history. This methodical approach included: 1. Detailed facility inspection and risk assessment 2. Review of emergency response and hurricane preparedness plans 3. Analysis of maintenance records and infrastructure improvements 4. Evaluation of environmental safety protocols 4. Assessment of staff training and certification programs Using this comprehensive data, Marine Surety identified several quality surplus lines carriers with specific expertise in marina operations and demonstrated financial strength to handle complex claims. The Solution Marine Surety structured a layered program incorporating multiple surplus lines carriers, each selected for their specific expertise and claims-paying ability. The program included: - Property coverage with a specialized wind deductible buyback option - Marina operators legal liability with enhanced pollution coverage - Comprehensive general liability including premises operations - Environmental liability coverage with restoration cost provisions - Specialized coverage for boat repair operations Implementation & Results The new program was implemented 60 days before the existing coverage expired, ensuring a smooth transition. Key outcomes included: - 15% premium savings compared to expiring coverage - Broader environmental liability protection - Reduced wind deductible through innovative buyback structure - Enhanced business interruption coverage - Simplified claims reporting process Within the first year, the marina experienced two significant weather events. The surplus lines carriers responded promptly, demonstrating the value of Marine Surety's carrier selection process. Claims were settled within 45 days, allowing the marina to complete repairs and maintain operations with minimal disruption. Key Lessons This case study highlights several important insights for marine operations facing similar challenges: 1. Quality surplus lines carriers can offer superior solutions for complex marine risks 2. Thorough operational documentation supports better coverage outcomes 3. Layered programs can provide comprehensive protection at competitive costs 4. Carrier financial strength and claims history are crucial selection factors 5. Professional presentation of risks can overcome previous claims concerns The successful placement of this marina program demonstrates how Marine Surety's expertise in evaluating both risks and carriers leads to effective solutions. By focusing on quality surplus lines markets and detailed risk presentation, coverage was secured when standard markets couldn't respond. For marine operations facing similar challenges with traditional insurance markets, Marine Surety (www.marinesurety.com) offers the expertise and market access needed to secure quality coverage solutions. Our thorough understanding of marine operations and strong relationships with surplus lines carriers enables us to solve complex insurance challenges effectively. Whether you operate a marina, shipyard, or other marine-related business, contact Marine Surety at support@marinesurety.com to discuss your specific coverage needs. Our team specializes in finding solutions when standard markets say no. [End of Article]