4 Considerations to Minimize Risks During Hurricane Season

We are 102 days away from the start of the 2025 hurricane season in the Pacific (May 15) and in the Atlantic (June 1).

The TSR (Tropical Storm Risk) forecast predicts that the Atlantic could experience 15 tropical storms, 7 of which could become hurricanes, with at least 3 reaching major hurricane status.

In terms of probability, there is a 34% chance the season will be more active than usual, a 48% chance it will be average, and an 18% chance it will be less intense. These figures reflect the complexity of global weather patterns influencing cyclone formation.

However, TSR emphasizes that long-term forecasts have significant margin for error, so projections will be subject to updates as the season approaches in June.

For Novamar, it is crucial to help boat owners and marina managers reduce risks and ensure they have the necessary emergency protocols and adequate coverage to minimize or prevent potential financial and structural losses.

Below are four effective considerations to minimize various risks in the event of a hurricane.

If you need more information, please feel free to contact us.

1) Identifying Vulnerabilities in Marinas and Docks

Before hurricane season begins, it’s essential to conduct a risk assessment to identify weak points in infrastructure and safety procedures. Key factors to consider include:

1. Geographic location and exposure
2. Some marinas are more exposed than others due to proximity to open waters, high tides, or storm-prone areas.
3. Structural integrity of the marina
4. Floating docks, pilings, moorings, and other structures should be evaluated to ensure their ability to withstand strong winds and storm surges.
5. Evacuation and storage protocols
6. Do boats have a clear plan for being secured on land or moved to safer areas?
7. Drainage and flood control systems
8. The marina’s ability to manage large volumes of water can make a difference in preventing damage.
9. Condition of boats and safety equipment
10. Anchors, lines, fenders, and other items should be regularly inspected to ensure they won’t fail in extreme conditions.

2) Types of Insurance for Marinas and Boats

An effective contingency plan should be supplemented with insurance coverage that specifically addresses hurricane risks. Several coverage options include:

1. Property Insurance for Marinas and Docks
2. This insurance covers marina infrastructure, including:
3. Docks and piers.
4. Administrative and commercial buildings.
5. Maintenance and service equipment.
6. Electrical and fuel supply systems.

1. Boat Insurance
2. Boat owners must ensure their policies cover hurricane-related damages. Key considerations include:
3. Physical damage coverage: Protects the boat in the event of strong winds, storm surges, or floating debris.
4. Liability coverage: Covers damages caused by the boat to other boats or the marina.
5. Removal of wreckage coverage: Covers the cost of removing a sunken or displaced boat after the storm.

1. Business Interruption Insurance
2. For marina managers, this insurance is vital as it covers the financial losses incurred due to temporary closures from hurricane damage.
3. 
   
4. Environmental Risk Coverage
5. Some marinas handle fuel and chemicals. In the event of a disaster, they may be responsible for spills or contamination. This coverage helps mitigate cleaning costs and regulatory compliance.

3) Exclusions and Key Points in Policies

It’s essential to review policy terms to avoid surprises in the event of a claim. Key points to consider include:

1. Waiting periods: Some insurers have a waiting period before hurricane coverage kicks in.
2. Mitigation requirements: Some policies require boats to be moved ashore or specifically secured for coverage to apply.
3. Limits and deductibles: It’s crucial to understand the maximum coverage limit and the percentage that the policyholder must cover.

4) The Importance of Periodic Reviews with an Insurance Agent

The role of an insurance agent goes beyond selling a policy; they are also key advisors in risk management. It is recommended to:

1. Conduct annual coverage reviews before the start of hurricane season.
2. Keep insured values updated based on depreciation or the acquisition of new assets.
3. Establish a joint action plan between the insurer, marina, and boat owners to streamline the claims process in the event of a disaster.