Do you know the exact dollar value of the liability sitting in your marina’s storage yard or inside your commercial warehouse right now? For commercial marine operators in the Orillia, Barrie, and Muskoka regions, the transition from the bustling summer season to the quiet of winter is not merely a pause in operations. It is a significant shift in risk profile. While a personal watercraft owner worries about a single tarp, a commercial operator manages a complex web of “Care, Custody, and Control” that can involve millions of dollars in third-party assets and critical business infrastructure.
At McLean & Dickey, we have been providing outstanding insurance solutions since 1922. As an independent, family-run brokerage, we work for you and not for the insurance companies. Our mission is to ensure peace of mind by providing the most complete insurance solutions tailored to the unique demands of the Ontario commercial marine sector. Whether you manage a fleet of tour boats on Lake Couchiching, operate a high-volume marina in Midland, or run a yacht club in the heart of Muskoka, understanding the nuances of winter protection is vital for the longevity of your business.
The Liability of "Care, Custody, and Control"
For many commercial marine businesses, winter revenue is generated through storage fees. However, accepting a client’s vessel for the off-season creates a legal bailment. This means your business assumes a level of responsibility for that vessel while it is in your possession.
A standard business property policy is often insufficient to cover the specialized risks associated with third-party boats. This is where Marina Operator’s Legal Liability (MOLL) becomes the cornerstone of your protection. MOLL is designed to protect you against liability for damage to boats in your care for mooring, storage, or repair.
Without the right coverage, a single catastrophic event, such as a storage shed fire or a multi-vessel rack collapse, could lead to litigation that exceeds your standard liability limits. Our team brings decades of experience to the table, advocating on your behalf to ensure there are no gaps in your coverage that would leave your business unprotected.
The Heavy Burden of Ontario Winters: Snow and Ice
The “Sunshine City” of Orillia and the surrounding Lake Country are beautiful in the summer, but the winters are notoriously harsh. For commercial operators, the primary physical threat during the lay-up period is the weight of ice and snow accumulation.
Commercial storage structures, particularly older boat houses or temporary fabric-covered buildings, are under constant stress during a heavy Ontario winter. According to research trends identified by Google, searches for “business risk management” and “structural insurance claims” typically spike following major weather events, as business owners realize that “preventable maintenance” is a thin line in the eyes of an insurer.
If a storage roof collapses under the weight of a record-breaking snowfall, the resulting damage to your clients’ vessels is just the beginning. You must also consider the damage to your own “Building,” which represents your base and the community you serve.
Not all commercial marine policies cover snow load, so make sure to ask about this coverage when discussing with your broker.
Managing the Commercial Lay-Up Period
In the world of commercial marine insurance, the “lay-up period” is a strictly defined timeframe during which vessels are expected to be out of operation. For tour boats or commercial fishing vessels, this period is essential for maintaining lower premiums, as it eliminates the seasonal operating risks associated with navigation and on-water accidents.
However, commercial operations often have “shoulder season” requirements. Perhaps a tour boat needs to remain in the water longer for a late-autumn festival, or a marina needs to move vessels earlier in the spring to accommodate a renovation project.
It is vital to communicate these operational changes to your McLean & Dickey broker. Operating outside of your specified lay-up dates without an endorsement can result in a denied claim. We pride ourselves on being empowering partners, offering digital tools that allow you to access your policy documents or view the status of a claim with ease, ensuring you always know where your coverage stands.
Protecting Infrastructure and Equipment
Beyond the vessels themselves, your commercial marine business relies on expensive infrastructure. Docks, bubbler systems, travel lifts, and specialized marine tools are the lifeblood of your operation.
- Submersible Equipment: Ensure your bubbler or de-icing systems are covered against mechanical breakdown. If a system fails and ice pressure damages your docks or a client’s hull, the financial fallout can be significant.
- Unattached Equipment: Commercial marinas often store their own high-end electronics, outboard motors, and expensive tackle. These items are prime targets for theft in the quiet winter months. Your policy should include specific provisions for unattached equipment and contents in storage.
- Pollution and Environmental Liability: A winter leak from a fuel tank or a hydraulic line on a stored vessel can lead to environmental contamination. In a community rooted in the beauty of its lakes, environmental stewardship is both a moral and a financial necessity. Specialized environmental liability coverage protects you from the astronomical costs of a spill cleanup.
The Importance of Professional Documentation
One of the most effective ways to ensure a smooth claims process is through meticulous record-keeping. When providing winterization services to clients, your business is acting as a professional service provider.
If an engine block cracks in the spring despite your team’s work, the client may look to your business for restitution. Maintaining “Errors and Omissions” (E&O) coverage or professional liability protection is essential for any marina offering mechanical services.
We recommend keeping digital backups of all service orders and winterization checklists. Our technology-driven insurance solutions are designed to complement your professional standards, providing a seamless interface for managing the complexities of modern marine business.
Agreed Value vs. Actual Cash Value for Commercial Fleets
When insuring your own commercial vessels—such as work boats, rental fleets, or tour ships—the method of valuation is a critical decision.
- Agreed Value: At the start of the policy, you and the insurer agree on the value of the vessel. In the event of a total loss during winter storage, you receive that exact amount. This provides the “peace of mind” that is central to our mission.
- Actual Cash Value (ACV): This factors in depreciation. For a commercial vessel that is used heavily during the season, the ACV payout in the spring may be significantly lower than the cost to replace the asset and return to operation.
For most commercial clients in the Barrie and Midland areas, we advocate for Agreed Value policies. This ensures that your business can recover quickly from a loss without a significant capital shortfall.
A Century of Strength in Your Community
McLean & Dickey is not just an insurance brokerage; we are your neighbours, your friends, and your colleagues. Our head office in Orillia, the “Sunshine City,” is situated on the shores of two connected lakes—a location that deeply informs our expertise in the marine sector.
We believe it is vitally important to support the communities where we live and work. Our team is our strength, bringing decades of combined knowledge and expertise to the service of our clients. When you partner with us, you are not just getting a policy; you are getting a dedicated advocate who will negotiate the best possible settlement in the event of a claim.
The Road to a Secure Spring
As the lakes freeze over and the winter wind picks up across the Muskoka region, don’t leave your business’s future to chance. A “set it and forget it” approach to winter storage is a risk no commercial operator can afford.
By identifying potential gaps in coverage, addressing the nuances of Marina Operator’s Legal Liability, and ensuring your infrastructure is protected against the unique challenges of the Ontario climate, you are setting the stage for a successful and profitable launch in the spring.
Our goal is to get you the best insurance coverage possible so that in the event of a claim, you are well protected. Whether you are in Barrie, Midland, Orillia, or Muskoka, we are here to help you protect what matters most.
Contact McLean & Dickey Today
Ready to ensure your commercial marine business is fully protected this winter? Contact McLean & Dickey today for a comprehensive policy review and a personalized quote. Our expert brokers will search the market to find the best coverage at the most competitive price, tailored specifically to your operational needs.