Marine Liabilities Insurance in the UAE

Marine Liabilities Insurance may cover a marine business’s applicable legal liability arising from its declared operations. It can be relevant to marina operators, boat dealers, ship repairers and other businesses that handle, maintain, store, move or work on vessels belonging to customers.

This is liability insurance rather than automatic first-party cover for every damaged vessel or item of property. A claim must arise from an insured activity, involve an applicable legal liability and fall within the issued policy wording, limits, deductibles, territorial scope, conditions and exclusions.

Marina Operators’ Legal Liability

Marina Operators’ Legal Liability Insurance may cover the insured marina operator’s legal liability for accidental damage to customers’ pleasure craft while the vessels are in its care, custody or control.

Declared marina activities may include:

1. Docking and mooring: Providing berths, slips and mooring spaces.
2. Launching and hauling: Moving vessels into or out of the water.
3. Storage: Wet or dry storage at declared marina premises.
4. Fuelling: Fuelling activities performed under agreed procedures.
5. Maintenance and servicing: Limited repair or maintenance work when declared.
6. Vessel movement: Operation of customers’ vessels within the marina when expressly included.

Liability for engines, outboard motors, equipment and other vessel components depends on the issued wording. Damage to marina-owned property, employee injury and motor liability may require separate insurance.

Boat Dealers’ Legal Liability

Boat Dealers’ Legal Liability Insurance may address declared vessels held as stock before sale and delivery. Depending on the agreed basis, it may cover eligible physical damage to insured dealer stock or legal liabilities arising from the dealer’s operations.

Demonstration trips, sea trials, movement by road trailer and transportation from a manufacturer’s premises are not automatically covered. These activities must be declared and may require specific hull, transit or liability extensions.

Ship Repairers’ Legal Liability

Ship Repairers’ Legal Liability Insurance may cover a repairer’s applicable legal liability for accidental damage to customers’ vessels during declared repair, maintenance, alteration or refitting work.

Cover may apply at the repairer’s yard and, when expressly agreed, at another location or during an approved trial trip. Cargo, equipment or other property aboard a vessel may be covered only when included under the applicable wording.

The cost of correcting defective workmanship is commonly excluded or restricted. Resulting accidental damage to other parts of the vessel may be treated differently, depending on the issued exclusion clause.

Optional Extensions

Subject to underwriting acceptance, extensions may be considered for:

1. Protection and indemnity: Liability involving non-owned vessels operated by the insured.
2. Road delivery: Delivery of vessels using an appropriate trailer.
3. Sea trials: Approved testing or trial voyages after repairs.
4. Pollution liability: Specified sudden and accidental pollution and clean-up costs.
5. Wreck removal: Legally required removal of an insured wreck.
6. Loss of use: Specified consequential loss suffered by a vessel owner.

These extensions are not automatically included. Each may be subject to separate limits, deductibles, conditions, geographical restrictions and exclusions.

Important Policy Conditions

1. Declared operations: All marina, sales, repair and vessel-handling activities should be accurately described.
2. Maximum vessel values: The highest value of vessels in the insured’s care should be disclosed.
3. Contracts: Berthing, storage, sale and repair agreements may contain liabilities that should be reviewed.
4. Safety procedures: Fuelling, lifting, hot work, launching and hauling procedures should meet applicable requirements.
5. Subcontractors: Subcontracted operations should be declared, including responsibility for their work.
6. Material changes: Changes to turnover, locations, services, vessel values or operational methods should be disclosed.

Common Exclusions and Limitations

Marine liability policies may exclude or restrict:

1. Damage to the insured’s own vessels, buildings, tools or equipment.
2. Employee injury requiring separate workers’ compensation or employers’ liability cover.
3. Contractual liability that would not otherwise exist at law.
4. Defective workmanship and the cost of repeating or correcting work.
5. Gradual pollution, contamination, corrosion and ordinary wear and tear.
6. Loss of use, delay, demurrage or loss of charter unless expressly included.
7. Undeclared sea trials, offshore activities, diving, towing or vessel operations.
8. Fines, penalties, deliberate acts, war and other exclusions stated in the policy.

What to Do After an Incident

1. Protect people, vessels and surrounding property from further damage.
2. Notify Al Buhaira Insurance as soon as reasonably possible.
3. Inform the vessel owner without admitting legal liability.
4. Preserve damaged property, components and other evidence.
5. Keep photographs, incident reports, witness details and job records.
6. Do not settle a claim or incur legal costs without prior approval.

How to Request a Quotation

Marine businesses can submit initial details through Al Buhaira Insurance’s dedicated Marine Liabilities quotation page. The quotation may consider the business activities, annual turnover, locations, vessel types, maximum vessel values, contracts, safety procedures, requested limits and claims history.

A quotation does not confirm that insurance has started. Cover begins only after the information has been reviewed, the offered terms have been accepted and the applicable policy documents have been issued.

Documents Required

The insurer may request documents and information such as:

1. Completed proposal or quotation form
2. Trade licence and company details
3. Description of marine operations
4. Annual turnover and projected activities
5. Types and maximum values of vessels handled
6. Marina, yard, workshop or storage-location details
7. Berthing, storage, sale or repair contracts
8. Fuelling, lifting and hot-work procedures
9. Subcontractor details and agreements
10. Details of sea trials, demonstrations or vessel movements
11. Required liability limits and extensions
12. Previous insurance details and claims history
13. Port, client, free-zone or contractual requirements

Why Choose Al Buhaira Insurance?

1. Marine insurance range: Marine Liabilities Insurance is available within Al Buhaira Insurance’s marine products.
2. Dedicated quotation page: Marine businesses can submit their initial operational details online.
3. Operational assessment: Quotations can consider declared activities, vessel values, locations and requested liability limits.
4. Policy and claims enquiries: Customers can contact Al Buhaira Insurance regarding issued terms or an incident under an existing policy.

Frequently Asked Questions