How Marine Contractors Can Prepare for the New Year

Inland marine insurance contractors’ equipment must be evaluated annually to cover growing value and risk exposure. Changes in project scope or new equipment acquisitions may require adjustments to existing policies. 

Marine contractor insurance plays a key role in maintaining proper protection against losses or damage. Policy adjustments may be necessary when contractors acquire new equipment that increases their coverage needs. 

Entering new contracts could also require changes to the policy to reflect additional risks or job site requirements. These adjustments protect existing and newly acquired assets.

Identifying Emerging Risks in Marine Contracting for 2024

Several trends and potential challenges can impact the industry, requiring contractors to adapt and adjust strategies. These include:

• Climate-related impacts: Extreme weather events can cause project delays, damage equipment, or disrupt supply chains, affecting overall project timelines and costs.
• Supply chain delays: Disruptions in the supply of materials or equipment can lead to project hold-ups, increasing costs and extending completion times.
• Regulatory updates: Changes in industry regulations may require adjustments to practices, insurance policies, or project scopes, often leading to additional compliance costs.

Marine contractor insurance can be tailored to cover climate-related risks by adding specific coverage for weather-related damage or delays. It can also include provisions for supply chain disruptions and complying with updated regulatory requirements, minimizing financial impact.

Best Practices for Marine Contractors’ Insurance Audits

A comprehensive insurance audit is essential for adequate and up-to-date coverage. Here’s a checklist for agents to guide their clients through a thorough insurance review.

• Review policy limits: Align coverage limits with current project sizes and asset values to avoid underinsurance.
• Assess new acquisitions: Verify that newly acquired equipment, tools, or property are added to the policy.
• Evaluate risk exposure: Analyze changes in job sites or operations that might increase risk and require additional coverage.
• Check for compliance: Confirm that the policy complies with updated regulations and industry standards.
• Update claims history: Review past claims to identify patterns and adjust coverage for potential future risks.

Assessing liability, property, and inland marine policies is crucial for the comprehensive protection of a contractor’s operations. Regular reviews of these policies help identify gaps in coverage and address emerging risks.

Strengthening Client Relationships Through Proactive Risk Management

Insurance agents can position themselves as trusted advisors by proactively addressing clients’ unique risks and evolving needs for the New Year. By offering tailored solutions and staying informed on industry changes, agents can build strong, long-term relationships with their clients.

Ongoing communication is essential for marine contractors to stay informed about changes in their operations and risks. Tailored recommendations allow coverage to evolve with their business, providing the right protection at all times.

Navigating the Year Ahead With Robust Marine Contractor Insurance

Preparing for the New Year with updated inland marine insurance contractors’ equipment aligns coverage with current needs. Regular reviews and adjustments to marine contractor insurance help mitigate emerging risks and protect vital assets.

Agents should work closely with their clients to assess and address emerging risks in 2025. Contact Merrimac Marine Insurance today to secure the right coverage for your client’s needs.

About Merrimac Marine Insurance

At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ businesses and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.