Other Pollution Threats to Marina Operators, Boat Dealers, and Lake/River Resort Operators

Marina operators, boat dealers, and lake/river resort operators depend on clean and abundant water for the success of their businesses. Consequently, it makes sense to pay attention to things that could affect the water quality. Fuel providers such as marina and some resort operators have long known that their fuel operations could lead to potential damages caused by a fuel spill and these businesses can take steps to prepare for those kind of damages and to minimize the risks. Insurance can and should be purchased to protect fuel providers from financial loss related to a fuel spill.

There are other pollution threats that cannot easily be planned for that could impact marina and resort operators as well as boat dealers. Concentrated animal farms/ranches and the natural gas drilling process known as fracking are two potential threats to water quality and there are others. If rivers and lakes are polluted, people may simply stop visiting those rivers and lakes, which would be a disaster for businesses that depend on the rivers and lakes. Unfortunately, this is a risk that is uninsurable! A property insurance policy is triggered by damage to insured property and if the water is polluted but the insured property is not damaged, the property insurance policy including Loss of Income coverage would not be triggered.

My advice to marina operators, boat dealers, and lake/river resort operators is to keep your eyes and ears open when it comes to environmental issues related to water quality and to get involved at the local and state government levels to make sure your representatives know how important water quality is to the success of your business. Get involved with trade associations if possible and make sure the association is working on water quality issues. Water pollution is real and the consequences of a river or lake becoming known as a polluted waterway are very real to marina operators, boat dealers, and lake/river resort operators and could be disastrous!

Doug Timmons, CIC, CMIP
Commercial Risk Service