Marine Contractor General Liability In Florida

For marine contractors in Florida, the tranquil blue of the ocean can quickly turn into a turbulent storm of financial liability. A single misstep on the water – an accidental spill, damage to a client’s prized yacht, or a crew member’s injury – can trigger devastating lawsuits and astronomical repair costs. In a state defined by its extensive coastlines, bustling waterways, and thriving marine industry, standard insurance simply won’t keep your business afloat. Instead, specialized Marine General Liability (MGL) insurance isn’t just a safeguard; it’s the indispensable anchor that secures your operations in Florida’s unique maritime environment.

Here’s what marine contractors in Florida need to know about general liability and other crucial coverages:

The Florida Landscape for Marine Contractors

Florida’s regulatory environment for contractors is specific, and marine contractors are no exception. To become a licensed Marine Contractor in Florida, applicants must meet specific requirements, including demonstrating financial stability and, crucially, attesting that they have obtained public liability and property damage insurance in amounts determined by Board rule. They are also required to obtain worker’s compensation insurance (or an exemption) within 30 days of license issuance.

This underscores the importance of having not just any general liability, but specialized Marine General Liability (MGL).

Marine General Liability (MGL) in Florida: Your Essential Anchor

MGL is specifically designed to address the liabilities faced by businesses operating on or near water. In Florida, this is particularly vital due to the high volume of marine activity.

Key aspects of MGL coverage for Florida marine contractors often include:

• Premises/Completed Operations: Covers injuries or damages that occur on the contractor’s premises (e.g., a boatyard, office) or after a project is completed (e.g., a newly built dock or seawall).
• Products Liability: Addresses claims arising from products manufactured, sold, handled, or distributed by the contractor (e.g., faulty marine components they installed).
• Work in Progress: Covers incidents that happen while work is actively being performed on a vessel, dock, or other marine structure.
• Contractual Liability: Provides coverage for liability assumed under contract, which is common in marine construction projects with specific client agreements.
• Limited Pollution Liability: This is especially critical in Florida’s environmentally sensitive coastal areas. MGL can help cover costs associated with accidental pollution or contamination, such as fuel spills or release of construction debris into waterways.
• Hired and Non-Owned Auto Liability: Covers liability arising from the use of rented vehicles or employee-owned vehicles for business purposes, whether on land or when used in conjunction with marine operations.
• Care, Custody, and Control (CCC) Coverage: This is a cornerstone of MGL for marine contractors. Unlike standard CGL policies that often exclude damage to property in the insured’s care, custody, or control, MGL specifically includes this for non-owned vessels, equipment, or property being worked on (e.g., if you’re repairing a client’s yacht and accidentally damage it).

Beyond MGL: A Comprehensive Marine Insurance Program for Florida

Given Florida’s unique maritime environment and the complexities of federal maritime law, marine contractors typically need a comprehensive insurance program that extends beyond just MGL.

• Protection & Indemnity (P&I) Insurance: If you own or operate vessels, P&I is crucial. It’s the marine equivalent of auto liability and covers a broad range of third-party liabilities, including bodily injury, illness, and death of crew or passengers, collision damage to other vessels or fixed objects (like docks or bridges), and pollution liability.
• Maritime Employers Liability (MEL): For contractors with employees working on or from vessels, MEL is vital. It addresses liabilities under federal maritime laws like the Jones Act (which allows seamen to sue their employer for negligence if injured) and «maintenance and cure» (covering medical care and living expenses for injured or ill seamen).
• United States Longshore and Harbor Workers’ Compensation Act (USL&H): This federal workers’ compensation program is mandatory for maritime employees who work on or over navigable waters or adjacent areas in the U.S., including shipbuilders, ship repairers, and other «dockside» workers in Florida. It’s distinct from Florida state workers’ compensation.
• Bumbershoot (Marine Umbrella) Liability: This provides excess liability limits over multiple underlying marine and non-marine policies (MGL, P&I, MEL, commercial auto). Given the potential for catastrophic losses in the marine environment, high liability limits are often recommended.
• Marine Contractors Liability: This coverage often falls under MGL but specifically addresses property damage to marine structures that the contractor is working on.
• Ship Repairers Legal Liability / Marine Operators Legal Liability: These coverages are critical for Florida businesses that repair or service vessels, protecting them from claims of damage to those non-owned vessels while they are in their care, custody, and control.
• Environmental/Pollution Liability: While MGL offers limited pollution coverage, a separate, broader environmental policy may be necessary, especially for contractors dealing with hazardous materials or operations with a higher risk of spills. Florida’s Department of Environmental Protection has strict regulations and penalties for pollution incidents.
• Commercial Auto Insurance: For any land-based vehicles used in the course of business, transporting equipment, materials, or personnel to and from job sites.
• Professional Liability (Errors & Omissions – E&O): If your marine contracting services involve design, consultation, or other professional advice, E&O insurance protects against claims of negligence, errors, or omissions in those professional services that result in financial loss for a client.
• Inland Marine Insurance: Despite its name, this covers tools, equipment, and materials that are transported over land, between job sites, or stored. It’s essential for protecting valuable movable property.

Why Florida Marine Contractors Can’t Rely on Standard CGL

Standard Commercial General Liability (CGL) policies almost universally contain «watercraft» exclusions or limitations on «work on the water.» This means if an incident occurs while you’re actively working on a boat, dock, or any navigable water in Florida, a standard CGL policy would likely deny the claim, leaving your business fully exposed to potentially ruinous costs.

The take-away for Florida marine contractors is clear: You need specialized marine insurance expertise. Work with an independent insurance agent or broker who deeply understands maritime law, the unique risks of marine operations, and the specific licensing and insurance requirements in Florida. They can help tailor a comprehensive program that protects your business from the unique challenges of operating in Florida’s dynamic marine environment.

Call Dorsal Insurance today for a quote (786) 601-2485