Yacht manufacturer - yacht inside marine business being built

Explaining Ordinance or Law Coverage

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.


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:



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. 

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