
From the slip to open water.
Coverage for marinas, yacht clubs, boat dealers, yacht charter operators, boat rentals and marine service businesses.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed November 2026 · How this page is researched
Marine businesses need marine markets
Marinas are responsible for boats in their care, docks and fuel, and visitors on the water. Boat dealers carry inventory on land and in the water, and charter operators carry passengers. Standard business policies aren't built for any of it, so marine businesses are written by marine specialty markets.
Employees working on docks and over water can bring federal longshore (USL&H) exposure, which changes the workers' comp you need. I place marine business coverage through marine specialty markets.
- Marina operators liabilityCustomers' boats in your care, custody or control.
- Dealer inventoryBoats for sale, on land and in the water.
- Charter liabilityPassengers and crew on chartered vessels.
- Property and USL&HDocks and buildings, and marine workers' comp.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- Operations: marina, dealership, charter or service.
- Location: harbor, slips and storage.
- Values: docks, buildings, inventory and vessels.
- Revenue and staff: sales, payroll and employees on the water.
- Fuel: fuel dock and storage tanks.
- History: current policies and claims.
When a slip holder stops paying: California's lien sale steps
A boat left behind with unpaid slip fees falls under California's Boaters Lien Law, Harbors and Navigation Code Sections 500 to 509. Section 501 defines storage as safekeeping, mooring, berthage, wharfage or anchorage, and services as repairs, labor, supplies or materials. Its definition of vessel excludes any vessel with a valid U.S. marine document, so a federally documented yacht falls outside it. Other states set their own procedures.
- The lien needs possession. Under Section 502 the lien depends on possession of the vessel. It arises when you send the registered owner a written statement of lien listing the charges and stating that the vessel is subject to sale under the California Boater's Lien Law.
- The lender's cap. If anyone other than the legal owner on the registration requested the storage or services, the lien is not valid against that owner's interest beyond $1,500 unless the legal owner consents to the excess. Request consent before passing that amount, on a standard DMV form, by personal service or registered mail. For storage charges, consent is presumed if the legal owner does not decline within 15 days of receiving the request.
- The 60-day clock. The lien is extinguished, and no sale may be held, unless 60 days after it arises you have applied to the DMV for authorization to conduct a lien sale or filed a court action.
- Vessels valued over $1,500 (Section 503). The DMV mails notices within 15 days of your application. Each person notified has 15 days from mailing to return a declaration of opposition; if one comes back, you must file in court within 60 days of the DMV's notice. Once authorized, advertise once in a county newspaper 10 to 30 days before the sale and mail notice, return receipt requested, 20 days before.
- Vessels valued at $1,500 or less (Section 504). Mail the notice packet, return receipt requested, setting the sale 35 to 60 days from mailing. After an opposition, you have 20 days from the DMV's notice to file in court.
Keep the slip agreement, lien statement and DMV paperwork in one file.
Pump-outs and no-discharge waters
Vessel sewage rules come from Clean Water Act Section 312. EPA designates no-discharge zones under Section 312(f)(3) to protect aquatic habitats where pump-out facilities are available. EPA's state table lists ten in California: Newport Bays, Sunset Bay, Huntington Harbor, Mission Bay, Oceanside Harbor, Dana Point Harbor, San Diego Bay where less than 30 feet deep at mean lower low water, Channel Islands Harbor, Avalon Bay Harbor and Richardson Bay. Lake Tahoe is listed as an (f)(3) zone shared with Nevada. EPA's 2012 final rule says the ten California zones remain in effect for all vessels.
A separate zone under Section 312(f)(4)(A), effective March 28, 2012, covers all California marine waters, but only for two classes: passenger vessels of 300 gross tons or more with berths or overnight accommodations, and oceangoing vessels of 300 gross tons or more with unused holding tank capacity or carrying more than de minimis sewage generated outside the zone. The rule states that small vessels without holding capacity are not regulated by it.
- Who can get a pump-out grant. DBW coordinates Clean Vessel Act grants. Local governments and private businesses that own and operate boating facilities open to the general public are eligible. Applications go through DBW's online system, OLGA.
- The match. The installation grant reimburses up to 75 percent of installed cost. You carry at least 25 percent, in cash or labor and materials at fair market value.
- Sign before you buy. Costs incurred before the grant agreement takes effect are not allowed, so a pump-out you already installed does not qualify. Onshore restrooms and sewage treatment such as septic tanks are excluded.
- What you commit to. Funded stations must stay open to all recreational vessels for their useful life and carry the national pumpout symbol sign.
Marina insurance, answered
What is marina operators legal liability?
Coverage for damage to customers' boats while they're in your care, such as at your slips, in storage or being moved.
Do yacht charters need special insurance?
Yes. Charters carry passengers and crew, which personal boat policies exclude.
Why does USL&H matter for marinas?
Workers on docks and near navigable water may fall under the federal Longshore Act rather than state workers' comp.
What do underwriters rate on?
Operations, location, values, fuel exposure, payroll and claims history.
Do you offer marina and boat dealer insurance outside California?
Yes. Clients across the country send the same quote form. Sam Alishahi is licensed in all 50 states and Washington, DC and places policies there directly. The shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
Official sources
- Cal. Harbors & Navigation Code 501 (definitions)
- Cal. Harbors & Navigation Code 502 (lien, legal owner consent, 60 days)
- Cal. Harbors & Navigation Code 503 (lien sale, vessels over $1,500)
- Cal. Harbors & Navigation Code 504 (lien sale, vessels $1,500 or less)
- 40 CFR 112.1 SPCC applicability (Cornell LII)
- 40 CFR 112.3 SPCC Plan, PE certification, qualified facilities (Cornell LII)
- EPA, No-Discharge Zones (NDZs) by State
- EPA final rule, NDZ for California State marine waters, 77 FR 11401 (Feb. 27, 2012)
- California DBW, Pumpout/Dump Station Installation (Clean Vessel Act)
- California DBW, Surrendered and Abandoned Vessel Exchange (SAVE)
Tell me about your operation. I'll shop it.
Your location, operations and values are enough to start.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued. Some policies may be placed with nonadmitted (surplus lines) insurers, which are not members of the California Insurance Guarantee Association (CIGA).
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