Marina, Boat Dealer, and Resort Operators Need to Beware of Exclusions

Marina operators may have legal liability for damages to others property (think boats) due to their operations such as fueling, docking, boat repair, dry storage, hauling/launching, and consignment sales. Boat Dealers and Resort operators may have the same legal liability due to some of the above operations. A standard General Liability policy excludes damages related to “care, custody, or control” of others property so the insurance industry has created a specific coverage called “Marina Operators Legal Liability” hereafter referred to as MOLL. MOLL can also be referred to as Ship Repairers Legal Liability for boat repair operations. MOLL will pay for damages to others property caused by you or your employees.

There are some very important exclusions to beware of that could affect your business in a claim situation. One such exclusion is customer’s property that you have given “care, custody, control” of to another bailee. If you perform some limited boat repair services but subcontract some of the work to a more specialized repair operation, your MOLL coverage will not pay if that subcontractor bailee damages your customer’s boat. Another common exclusion is for damage to others property that you have accepted for storage without charging a storage fee. To avoid this exclusion, do not offer free storage. If you allow a customer to store a boat or trailer on your property, you need to have a written agreement with stated storage fees. MOLL will not pay for some damages such as “loss of use” of others property, damages caused by insects, animals, vermin, etc. so it is important to protect others property from damages associated with these things.

MOLL usually is offered with a deductible, usually at least $1,000 and sometimes higher. To avoid MOLL claims, it is important to analyze your operations where you or your employees take over “care, custody, or control” of others property and to see where you can make improvements to avoid potential damage to others property. Ask yourself if you have provided the best possible employee training, if your property is in a state of good repair so that your property can’t cause damage to others property? If not, now is a good time to provide the training and making any needed repairs.

Doug Timmons, CIC, CMIP
Commercial Risk Service

How to retain your best employees

The rules of employee retention have changed. No longer can loyalty be bought with big salaries, hefty bonuses, and rich benefits packages. Today it takes intangible, non-monetary rewards to create an atmosphere that makes your people feel valued, respected, and involved. It takes a whole new way of thinking. This is the sixteenth edition of a 20-week special on ideas you could implement to keep those best employees:

16) Practice what you Preach
In the wake of massive corporate downsizing and restructuring, it's not surprising that many employees are on the defensive. In fact, a survey from the Council of Communication Management revealed that 64% of employees believe that management is often lying to them. When employees detect mixed signals and broken promises coming from management, they grow more resentful.. and it's kind of lasting resentment that may not fully surface until the next interview.

When it comes to dealing with your employees, actions speak louder than words. For example:

• The president of the company announces a new initiative toward "total quality". Two months later, a salary freeze is implemented.
• A manager constantly extols the virus of efficiency, but rewards only employees who put in many overtime hours.
• A company launches a new "employee empowerment" campaign, but continues to not listen to what its employees are saying.

Employees today are often asked to bend over backwards for the company, but the company has to bend a little, too. How can you ask your staff to be flexible about working overtime if you're not willing to offer them flexible hours? Why should your people respect the customer if they don't feel respected themselves?

A good strategy for avoiding conflict is to align your rewards with company objectives. If the company makes customer service its top priority, recognize employees who take good care of your clients. If you're on a cost-cutting crusade, give employees a percentage of the savings resulting from their ideas. When you practice what you preach, you don't have employees; you have partners-partners who are more willing to stick with you for the long haul. 

Healthcare Reform provides a Government Incentive to Gain a Competitive Edge

Healthcare Reform includes a sizable tax credit for small businesses that meet certain criteria. You can use this government incentive to build a stronger benefits package for your employees, often at a lower cost than you are paying now for the health benefits alone.


With the right benefits strategy, you can actually save money while adding valuable benefits your employees need and want-such as life and disability insurance.

At a time when the top two motivators of employee satisfaction are job security and benefits, this can help you compete more effectively against bigger businesses for workers with critical skills talent.

If you are interested in exploring this opportunity to improve your benefits package, and save money, contact Wayne Perkins at 479-273-1376.

How to retain your best employees

The rules of employee retention have changed. No longer can loyalty be bought with big salaries, hefty bonuses, and rich benefits packages. Today it takes intangible, non-monetary rewards to create an atmosphere that makes your people feel valued, respected, and involved. It takes a whole new way of thinking. This is the fifteenth edition of a 20-week special on ideas you could implement to keep those best employees:

15) Look Beyond your Department
 Sometimes a pat on the back from an unexpected source can lift an employee's spirits. You can be that unexpected source when you give praise and recognition to people outside your area of responsibility.

If you encounter an exceptional employee in another department, do something to show your appreciation. It could be as simple and informal as a "thank you," or something more official, like a letter of commendation sent to the worker and his or her immediate supervisor.

Is this overstepping your boundaries? Doing someone else's job? Those are exactly the perceptions you'll need to overcome if you're serious about boosting morale and keeping good employees. Retention isn't a departmental task; it's a companywide enterprise. If you want more teamwork from your staff, let your own actions serve as an example. If you want to defuse any "us against them" mentality that crops up at your office, learn to value your top performers, no matter where they work.

How to retain your best employees

The rules of employee retention have changed. No longer can loyalty be bought with big salaries, hefty bonuses, and rich benefits packages. Today it takes intangible, non-monetary rewards to create an atmosphere that makes your people feel valued, respected, and involved. It take a whole new way of thinking. This is the fourteenth edition of a 22-week special on ideas you could implement to keep those best employees:

 

14) Encourage Personalized Workspace

 

People spend 25% or more of their time each week at work. Wouldn’t it be nice if that time were spent in a space that’s comfortable, friendly, and personal? Give your employees a voice in making your office a better place to work by letting them enhance their work areas to be more productive, less noisy, more roomy, whatever’s most important to them (within company guidelines). Here are some suggestions:

• Set aside a small budget for employees to spend on plants, flowers, pictures, candy, artwork, etc.
• Install a bulletin board or chalkboard that employees can use to post everything from recipes to photos of customers to humorous messages.
• Encourage new photos of family members, kids, or other important people to them.
• During the holidays, encourage your staff to decorate their areas in the spirit of the season. Offer a small prize to the most festive desk.

 Studies have shown that work environment can have a dramatic impact on productivity and morale. By getting your employees involved, you can help to build a more enthusiastic staff and send a signal to other workers that creativity and innovation are important company values.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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