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3 Important Elements Every Marina Contract Needs

3 Important Elements Every Marina Contract Needs

Marinas are designed to be safe harbors for vessels. However, the marinas themselves need specific protections from potential liability issues. The industry experts at Merrimac Marine say these all marina slip contracts need these three elements.

1. Waiver of Subrogation

This clause prevents boat owners from suing the marina if their vessels are damaged while docked at the property. Such damage might occur if vessels had to be moved during a storm, for example.

2. Required Liability Insurance for Boat Owners and Contractors

Before vessel owners even dock their boats, marinas need to ensure they have at least basic liability coverage for their vessels. If craft owners have someone out to work on their boats, marinas should make sure those people are also adequately insured.

3. Contractual Considerations

Marina contracts need to include several items dealing with situations that might arise during slip rentals.

  • The ability to cancel rental contracts if the marina is damaged
  • Contract termination if boat owners do not pay fees and follow marina rules
  • Contract termination if guests of boat owners do not follow marina rules
  • The ability to terminate rental contracts for unpaid fees

Marinas must look ahead and plan for possible problems when writing rental contracts.

Those operating marinas need to give themselves protection through careful wording. Including specific elements safeguards marinas from possible legal liabilities. Comprehensive marine insurance also offers a valuable level of defense against possible hazards of many kinds.

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