A boat fire spread through a marina on the Mohawk River in Alplaus, New York, after a docked pontoon boat ignited, Authorities are still investigating the cause of the Aug. 13 blaze, which destroyed several boats at the Mohawk Valley marina and damaged other vessels, News10 reported.
“It is certainly an unfortunate situation,” said Michael Dearness Associate Manager, Ocean Marine, Freight Services Leader, Burns & Wilcox, Toronto, Ontario. “It is something where the marina likely could not have taken steps to avoid it. Many of the marina losses I have seen over the years come from similar issues.”
State officials were on the scene shortly after the blaze to monitor for any environmental impacts but found no significant issues, according to WRGB CBS 6 Albany. No one was injured, and the cause was believed to be accidental.
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“My first thought was that I’m glad everyone is OK. My second thought, honestly, was that the exposure of fire at these docks is more common than individuals think,” Wheeler said. “It is important to have proper insurance coverage on your docks.”
Dock fires can be particularly disastrous
According to the U.S. Fire Administration, fires on boats and in marinas can spread quickly and can be more difficult to extinguish. Dock fires can be especially disastrous, especially when the location is difficult for firefighters to access.
“Those docks will burn,” Wheeler said. “Usually when there is a fire at a marina like this, it is pretty bad. Marinas are typically in locations that might be harder to get to. When you hear about a fire in a marina, it is usually not good.”
In recent days, a 41-foot boat caught fire while docked at the fuel station of a marina in Wildwood Crest, New Jersey, CBS News reported Aug. 22; and a boat fire at a marina in West Palm Beach, Florida, recently sent one injured individual to the hospital, WPTV reported Aug. 24. On Aug. 21, firefighters put out a boat fire at a marina in Eureka, California, according to KRCR, and a 50-foot yacht caught fire in Clearwater Harbor in Florida on Aug. 24, WPEC reported.
“At marinas, an incident that is going to impact one vessel will often impact others in close proximity to it, as well,” Dearness explained, adding that other perils, such as flood, can also impact more than one vessel. “If flooding is bad enough where one dock is going to float away, certainly there is the potential that it is going to impact multiple vessels.”
After a fire or other loss at a marina, individual owners whose boats were damaged could have coverage under their Hull and Machinery Insurance, which is designed to respond to physical damage to the vessel itself. The owner of a boat responsible for an incident that impacts other vessels, such as a fire, could also be sued over the incident, with the owner’s Protection and Indemnity (P&I) Insurance potentially covering expenses related to third-party bodily injuries and property damage.
“If someone was injured, they could risk being sued,” Wheeler said of the boat owner responsible for the blaze.
Marinas responsible for docked boats
A marina is generally liable for any boat in its care, custody and control. This includes any boats on their docks, Wheeler said. “If several boats burned down, the marina owner could be liable for those individuals’ boats. The damage to their boats could be covered,” he said, adding that claims over emotional distress or other losses from an incident could also be included. “There is a lot of liability involved there.”
With this in mind, marina owners should be careful about the terms and conditions that apply to the boats on their property. According to Dearness, it is not uncommon for these terms “to accept full liability for the vessels in their care, custody and control.”
“Those losses can get to be quite, quite expensive,” he said.
On most MGL Insurance policies, MOLL Insurance is an extension that can respond to boat damage and losses — from dock fires or roof collapse to theft and slip-and-fall accidents on the marina’s property. This policy would be “the prominent coverage” in the recent marina fire incident in New York, Dearness said.
It always benefits you to have [a marina] insured properly. If you cannot afford the coverage, then wait to open up until you can.
MGL Insurance and MOLL Insurance are essential policies for marinas, which would usually not be adequately covered under a standard Commercial General Liability (CGL) Insurance policy, according to Wheeler.
“Basically, what you are covering is individuals’ health and the condition of their boats,” Wheeler said. “A lot of times we see marinas try to get standard insurance for half the price instead of MGL or MOLL Insurance, but it is important to review your coverage. It always benefits you to have it insured properly. If you cannot afford the coverage, then wait to open until you can.”
‘A good reminder to check your limits’
Although marinas are generally held liable for damage to boats on their property, in a situation like the recent marina fire in New York, the marina’s insurance carrier could ultimately subrogate back against the boat owner responsible for the fire, Dearness said.
“MOLL Insurance is going to cover them for any losses that they are deemed to be liable for, from the damage to the vessels and the dock itself to any bodily injury, in the event there were injuries,” he noted. “Even though these losses can get to be very high on the property side, anytime bodily injury gets involved, those losses can continue to grow at that point. That is where you can get into some really large claims.”
Recent marina fires in the news are “a good reminder to check your limits” on insurance policies like MGL Insurance and MOLL Insurance, Dearness said. “Make sure you have appropriate limits in place, especially with the rising cost of inflation and the value of vessels increasing,” he said. “If a marina has not been checking their limits on an annual basis, the same 100 docks they had seven years ago may be holding a far different value of vessel than the 100 docks they have today.”
In addition, Wheeler said, marinas should ensure that members are properly vetted and carry their own insurance, and that security measures are taken such as alarms and fire extinguishers.
Preventing losses is not always possible, Dearness added, which is why insurance is so important. “There are those unfortunate situations where even if you are following best practices on risk prevention and mitigation, there is still a risk,” he said. “Even if you do everything perfectly, a fire can still arise. You need to protect yourself with that proper insurance coverage.”
