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Marinas & Marine Businesses · California

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

How it works

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.
Who I help

Businesses that call me

Marinas and yacht clubs

Slips, docks and fuel.

Boat dealers

New and used boat sales.

Yacht charters and rentals

Crewed and bareboat charters.

Marine service and repair

Mechanics, detailers and yards. See details

Your own boat

Personal boats and yachts. See details

Coastal properties

Waterfront buildings. See details

Before you call

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.

Start the Quote Form

  • 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.

Fuel docks and the SPCC thresholds

A fuel dock sits beside navigable water, which is where EPA's oil spill prevention rule, 40 CFR Part 112, is aimed. Section 112.1 applies it to a non-transportation-related facility that stores, transfers, distributes or uses oil and, due to its location, could reasonably be expected to discharge oil in quantities that may be harmful into navigable waters or adjoining shorelines. Whether you need a written Spill Prevention, Control, and Countermeasure (SPCC) Plan then turns on storage capacity, not fuel sales.

  • The thresholds. The rule does not apply to a facility whose completely buried storage capacity is 42,000 U.S. gallons or less and whose aggregate aboveground storage capacity is 1,320 U.S. gallons or less. Both must be true. Buried tanks subject to all the technical requirements of EPA's underground tank rules (40 CFR Part 280) or an approved state program are left out of the buried total.
  • What counts. Only containers of 55 U.S. gallons or more count toward the aboveground total, and containers under 55 gallons are exempt. Add up every one that holds oil: fuel tanks, waste oil tanks, drums in the service yard.
  • Who certifies. Section 112.3(d) requires a Professional Engineer to review and certify the Plan, unless the facility is a qualified facility that self-certifies under Section 112.6.
  • Tier II. Aggregate aboveground capacity of 10,000 U.S. gallons or less, and in the three years before the self-certification date no single discharge over 1,000 U.S. gallons and no two discharges each over 42 U.S. gallons within any twelve-month period. Discharges caused by natural disasters, acts of war or terrorism are not counted.
  • Tier I. Meets the Tier II criteria and has no individual aboveground container larger than 5,000 U.S. gallons.

When you ask for pollution liability insurance for the fuel dock, send the Plan with your tank list.

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.

Abandoned boats and the SAVE grants

A derelict boat can become a sinking or pollution problem. California's Surrendered and Abandoned Vessel Exchange (SAVE), run by DBW and formerly the Abandoned Watercraft Abatement Fund and the Vessel Turn In Program, funds getting abandoned recreational boats off the water.

  • Who applies. Only local public agencies with jurisdiction over navigable waterways in California. DBW states that private businesses cannot apply for a SAVE grant.
  • Your way in. DBW adds that a private business that is the registered owner or lienholder may work through a participating local agency to surrender a vessel through the Surrendered Vessel Program. If you hold a boater's lien, ask the agency whether that qualifies.
  • Agency discretion. Each agency decides which surrendered vessels to accept. DBW cites Section 526.1: the agency determines, in its sole discretion, that the vessel is in danger of being abandoned. Agencies may accept vessels from their own area or neighboring California communities.
  • What it pays for. For surrendered vessels: removal, one tow, hazardous material removal, demolition and disposal. For abandoned vessels: abatement, removal, storage and disposal, plus towing, hazardous material removal, appraisals and lien sale costs. Commercial vessels are not covered.
  • The agency's match. Citing Section 526, DBW requires a 10 percent contribution from the receiving agency, in cash or verified in-kind work.

DBW says the FY 2027/28 application opens March 2027. Ask your harbor district, city or county early. For vessels you own or operate, see yacht insurance.

Questions

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.

Marina insurance

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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