Loss Control Inspections at Marina

Many marina owners have had a visit from an insurance company loss control specialist. If you are a new marina owner, you may not have experienced a loss control inspection. Some insurance companies send out a loss control specialist prior to offering an insurance proposal, however it is far more common that these inspections are performed after coverage is bound on the insurance policy.


What is a loss control inspection and why is it important? This can be a golden opportunity for a marina owner to learn how to reduce and eliminate risks due to your marina operations. A loss control inspection will consist of a premises inspection and evaluation by the loss control specialist. These people look at everything including your land and parking, land buildings, docks, repair facilities, your boats, your vehicles, etc. They are looking to see if there are any potential improvements that need to occur to eliminate potential claims. Examples could be anything from potholes in your parking lot to safety equipment on machinery in your shop, to dock walkways and your fuel system. They may discuss things with the marina owner but they will produce a formal loss control report that will be shared with the marina owner as well as the insurance company. This report will include “Recommendations” for improvement. Insurance companies will often view these ‘Recommendations” as requirements so it is important for a marina owner to address the recommendations and then provide a written confirmation to the insurance company on how the recommendations were addressed. Occasionally, a loss control specialist will recommend something that may be quite costly or may seem ridiculous. If that occurs, please talk to your agent before getting upset. Your agent can sometimes work with the insurance company to come up with a solution agreeable to all. Remember, the recommendations are really an effort by the insurance company to help you to avoid claims that could end up costing you a lot of money and time.

Some marina owners who have been in business for a number of years sometimes feel like this is an imposition on them because nothing has happened before but all it takes is one accident to cause your business significant financial loss and even threaten the viability of the business! Insurance companies have paid all kinds of claims on accidents and their investigations can determine the cause of the claim and ways to mitigate or avoid similar claims in the future. Loss control inspections and recommendations will help the marina owner to avoid costly claims that could be avoided. Please don’t view it as an imposition, view it as an opportunity to improve your business operations and the safety of your customers, vendors, and employees.

If your insurance company hasn’t provided a loss control inspection, you may be able to request one. Many companies have those services available and shouldn’t cost you anything for that service. I would recommend that you ask your agent if you are interested in having a Loss Control Inspection.

Doug Timmons, CIC, CMIP
Marina Insurance Specialist
Commercial Risk Service