Understanding Marine General Liability (MGL)
MGL is a crucial form of coverage for Marine Contractors and Operators. It protects your business from third-party claims for bodily injury and property damage arising from your marine operations. The policy covers your work, products, completed operations, and advertising liability.
Unique Considerations for Marine Contractors
- Complex Operations: Marine operations, both on-water and shore-side, present unique risks and challenges.
- Long-Term Liability: Contractors may be responsible for their work for many years, due to client requirements or state statutes.
- State and Client Requirements: Each state and client has different regulations and expectations regarding construction defects, tort liability, and the statute of limitations.
Common Marine Coverages
- Marine General Liability (MGL)
- Protection & Indemnity/Hull (PI/P&I)
- Bumbershoot/Umbrella and Excess Liability
- Tower's Legal Liability
- Ocean and Inland Marine
- Marine (Hull) Builders Risk/Course of Construction
- Hull Physical Damage
- Marine Legal Liability
- Marine Pollution Liability
- Non-Owned Watercraft Liability
- Riggers/Rigging, Rig Swamping, and Crane Operators Liability
Certificate of Insurance Requirements
Clients and the US Coast Guard may require a Certificate of Insurance (COI) naming your company as "Additional Insured." The US Coast Guard also requires a Certificate of Financial Responsibility (COFR) for ships over 300GT.
Additional Considerations
- Protection and Indemnity/Hull (PI/P&I): Ship Owners and Operators will procure 'Protection and Indemnity/Hull (PI/P&I)' for response to damage to the ship or machinery, liability from the operations of the ship (damage to others property), and also P&I is the sole remedy to bodily injury/death indemnity to third parties, the crew and passengers of the vessel.
- Bumbershoot/Umbrella and Excess Liability: It is common on high value projects and for some clients that have had a bad experience and will never be caught with too little coverage ever again or simply have something to lose. Commonly the excess layer will go over your primary MGL policy and also is requested over the Hull P & I too, so crew have a higher limit of coverage which effectively limits your clients liability from ever coming into play.
- Tower's Legal Liability: Necessary for push/tow operations.
- Ocean Marine: Covers property not fixed to the vessel.
- Hull Builders Risk: Covers construction or rehabilitation of vessels.
Marine Contractors General Liability Insurance is essential for protecting your business. By understanding the unique risks and challenges of the marine industry, you can ensure you have the appropriate coverage in place to mitigate liabilities and financial losses.