There are inherent risks to water-based activity, and we aren’t talking about sea monsters.

When water is involved, exposure exists, and your clients need to be protected.

Here are three areas of potential risk:

1- Exposure accumulation in shipping.

Cargo policies have a set coverage limit to cover losses or damage to goods. However, delays are almost a certainty in shipping.

Risk increases when goods are delayed. Cargo held on a vessel, at port or in a warehouse is easily lost, spoiled or damaged.

If the delay lasts too long, multiple shipments can “stack” with the collective values of cargo in transit exceeding the coverage of your client’s cargo policy limits.

To account for the increase in exposure, Institute Cargo Clauses have built-in coverage, automatically increasing the value (even doubled) of the multiple shipments accumulated at one point or place during transit.

Cargo is inevitably going to be delayed at some point between origin and destination but, it is impossible to predict where and for how long. The COVID-19 quarantine has caused unprecedented slowdowns and even shut-downs of ports, terminals, storage and distribution facilities. Delays are lasting months, leaving businesses potentially exposed without sufficient coverage for their shipments.

If your client is in this situation or you question the current coverage in place, it is critical to work closely with the insurer to find a satisfactory solution.

2- Risks in Recreation.

Summertime means an uptick in recreational activities, especially on the water, resulting in an increase in exposure to waterfront/waterborne businesses.

From marinas, docks and piers to custom projects aboard vessels, MJ Kelly has a comprehensive solution to cover your client’s exposures.

3- Docks and piers create risks for homeowners and commercial properties.

Docks and piers are not covered under homeowner’s or commercial property policies.

MJ Kelly offers a wide variety of coverage options. Our underwriters work closely with you to build a comprehensive solution matching the needs of your clients and protecting them from risk.