Care, Custody & Control Coverage: What Boat Yards Need to Know

If you operate a boat yard, marina, or marine repair facility, there's one coverage gap that could put you out of business overnight: damage to boats in your care.

The Coverage Gap Problem

Here's a scenario that plays out too often:

A $200,000 sport fisher is in your yard for bottom paint. During a storm, your travel lift fails and the boat crashes to the ground. Total loss.

You file a claim with your general liability insurer. They deny it. Why?

Standard general liability policies exclude property in your "care, custody, or control."

This exclusion exists because GL policies are designed to cover accidental damage to third-party property—not property you've voluntarily taken possession of. That's a fundamentally different risk.

What Is Care, Custody & Control Coverage?

CCC coverage (sometimes called marine bailee insurance or customer boat coverage) is specifically designed to fill this gap. It covers damage to customer vessels while:

- Stored at your facility (on land or in water)

• Being hauled in and out of the water

• Under repair or service

• In transit if you transport boats

  What CCC Coverage Includes

  A comprehensive CCC policy covers:

  Physical Damage

• Storm damage (wind, hail, lightning)

• Fire

• Collision during transport or movement

• Vandalism and malicious mischief

• Theft (yes, boats get stolen from yards)

  Equipment Failure

• Travel lift or crane accidents

• Forklift mishaps

• Jack stand or cradle failures

  Operational Errors

• Employee negligence

• Improper blocking or storage

• Damage during sea trials

  Coverage Limits: How Much Do You Need?

  Consider the maximum value of boats you might have at your facility at any one time. This includes:

  - All boats in storage

• Boats actively being worked on

• Boats awaiting pickup

  Many boat yards need $1-5 million in CCC coverage. High-end facilities handling mega-yachts may need $10 million or more.

  Deductibles and Cost Factors

  CCC coverage typically has higher deductibles than general liability—often $5,000-$25,000 per occurrence. Factors affecting your premium include:

  - Total capacity (number of boats)

• Maximum boat value

• Types of services offered

• Claims history

• Security measures

• Location (hurricane zones cost more)

  Don't Operate Without It

  Without CCC coverage, a single incident could result in a lawsuit that exceeds your entire business value. Given the high-value assets boat yards handle, this coverage isn't optional—it's essential.

  Need help finding the right CCC coverage? Contact our marine insurance specialists for a customized quote.