Marine General Liability vs. General Liability

Marina operators and boat dealers have unique liability protection requirements to protect the business from lawsuits related to the business operations. Did you know that a standard General Liability policy excludes coverage for watercraft including the “ownership, maintenance, use of” watercraft owned or operated by an insured? This exclusion is especially problematic for marina operators and boat dealers because of the frequent operation of owned and also customers watercraft. Operations such as marina employees operating work boats or rental boats around the marina, test drives and demo drives of boats for sale or repaired boats are excluded in an unendorsed General Liability policy.


Another exclusion in an unendorsed General Liability policy is the “care, custody, or control” of personal property of others. This means that operations such as boat repair, fueling, storage, hauling and launching, slip rentals are all excluded by an unendorsed General Liability policy.

For boat dealers who sometimes install aftermarket parts or equipment on boats for sale, there is a “your product” and “your work” exclusion in an unendorsed General Liability policy that excludes coverage for a claim related to the installation of the aftermarket part.

Insurance companies that insure marine businesses have created a Marine General Liability form that eliminates the above exclusions so that marina operators and boat dealers are properly protected. Do you know which liability form you are protected by?

The above exclusions are important reasons to know if your agent is a marine insurance specialist, to know if the insurance company that your liability policy is with uses a Marine General Liability form instead of a standard General Liability form. The differences are critical for the protection of your business.