Explaining Ordinance or Law Coverage

Nov 20, 2019 | Blog Post, business marine insurance, commercial marine insurance, marina | 0 comments

Damages caused by the average hurricane amount to $21.6 billion, source USAtoday.com. Our marine business insurance specialists will attest to the threat that hurricanes can pose to marinas, boatyards, and manufacturers. When Mother Nature is in a fury, stormy weather and high winds can cause significant damage to buildings and structures. When you repair or rebuild you must adhere to current building regulations. Unfortunately, standard coverage often does not cover the cost of upgrades that new legislation demands and marine business owners are often left with a hefty bill.

marina
Marina

That’s where ordinance and law coverage comes in. The term ordinance usually refers to legislation enacted by a municipality, like smoking six feet away from building exits. In the insurance business, ordinance and law insurance provides coverage for the cost to upgrade a building to meet current building standards after it has been damaged or destroyed. Regular insurance typically covers “like kind and quality” — in other words, rebuilding it to the way it was before sustaining a loss.

If your marine business operates out of a heritage building, it is especially important to ensure you have ordinance and law coverage, because it’s likely that the original structure would not meet current building code requirements. However, municipalities can introduce new legislation at any time, and more modern buildings may still require upgrades if they are damaged. Standard insurance often doesn’t cover all the additional costs of necessary updates during a rebuild. Additional construction fees can be a strain on your business.

The most common upgrades include:

Electrical

Plumbing

Heating and cooling systems

Fire safety features like sprinklers

Check with our marine business insurance specialists about ordinance or law coverage. The little bit of extra coverage can save you a lot of money if you have to rebuild after a hurricane, fire, or another disaster. Call 800.748.0224 to speak with a marine business insurance specialist or request a quote online. 

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Recent Articles

Spring Boating Checklist

Spring Boating Checklist

As the days grow longer and warmer, the allure of the open water beckons. Yet, preparing for a new boating season involves more than just dusting off your vessel and checking your insurance policy. Here's a comprehensive guide to ensure you're fully prepped for your...

Stray Electric Current Hazards

Stray Electric Current Hazards

Lethal stray electric current is a common risk that marina operators, boat builders, and yacht clubs need to take steps to prevent. This insidious threat can quickly pose a risk at marinas, which could lead to electric shock drowning. Aside from fatalities or bodily...

Boat & Yacht Sea Trials

Boat & Yacht Sea Trials

If you're considering buying a boat or yacht, it's highly recommended that you take it for a sea trial first. Why? Seeing a yacht while it's docked or in a showroom isn't the same as understanding its performance. A sea trial provides a perfect opportunity to...

Water Sports Towing Tips

Water Sports Towing Tips

How to Pull Skiers Safely Boat insurance coverage is important for protecting you against liability, but knowing how to pull skiers safely can greatly reduce the risk of injury for those in the boat, being towed, and on nearby boats. To ensure that everyone has a fun...

Maritime Workers Insurance Coverage

Maritime Workers Insurance Coverage

If you employ marine workers, it can be challenging to figure out what insurance you should invest in to ensure adequate coverage. There are two federal statutes governing compensation for marine injury claims: The Division of Longshore and Harbor Workers'...

Call Now Button