Overview
Maritime construction covers building and repair work that takes place on or over water, using boats, floating platforms, temporary access structures and specialized equipment. Because the work environment is different from a dry land site, insurance needs are also different: standard contractor policies often exclude waterborne exposures or limit coverage for floating plant and weather-related losses.
This guide explains the core exposures typical for maritime construction projects and the insurance considerations owners, contractors and subcontractors should review before starting work on or near water.
Key takeaways
- Waterborne equipment and vessels often require separate coverage because many standard policies exclude them.
- Liability for damage caused by a vessel or floating works is a common and significant exposure.
- Temporary installations and adverse weather can interrupt work and may be covered by specialized policies.
How it works
Insurers evaluate maritime construction risks by looking at the work location, types of vessels and floatation devices used, the extent of underwater or overwater operations, and the experience and training of the crew. Policies are tailored to address gaps left by standard contractors liability or property forms.
Common ways to package coverage include project-specific builders risk riders, marine floaters for temporary structures, and separate watercraft liability policies for boats that transport personnel or equipment to the site.
What it may cover (and what it may not)
Typical coverages that may be available for maritime construction include liability for damage caused by vessels or floating installations, protection for specialized tools and equipment when used on water, and coverage for delays or damage caused by storms and tidal action.
Because standard policies often exclude waterborne exposures, contractors may need a dedicated marine or project form. For example, consider specialized options such as Marine Construction Insurance for project-level protection, Marine Construction General Liability for liability tied to on-water operations, and Maritime Equipment Insurance to insure gear that is taken onto the water.
Exclusions to watch for include normal wear and tear on vessels, poor maintenance, and losses resulting from operations outside of declared project limits. Adverse weather clauses and tidal exclusions may also limit coverage unless specifically included.
Common mistakes to avoid
One common mistake is assuming a land-based policy will automatically cover equipment and operations on water. Another is failing to document the condition and maintenance of vessels and floatation devices, which can lead to denied claims.
Teams also sometimes overlook contractual insurance provisions such as "knock for knock" agreements that require each party to cover its own losses regardless of fault; understanding these clauses before signing contracts is important to avoid unexpected out-of-pocket costs.
Questions to ask an agent
When shopping for coverage, ask whether standard contractor policies exclude waterborne equipment and whether coverage can be endorsed or must be purchased separately.
Ask about limits and deductibles specific to watercraft liability, coverage for temporary floatation and scaffolding, and how adverse weather or tidal events are treated under the policy.
If you need help comparing options, consider using the site tools to ask an agent for a tailored quote and to confirm which exposures are covered.
Next steps
Document the scope of work, list all vessels and temporary marine installations to be used, and gather maintenance and crew qualification records before requesting quotes.
Provide this information to your broker or insurer so they can identify gaps and recommend appropriate marine floaters, watercraft liability limits, and project-level protections.
Review contract language for any "knock for knock" arrangements or other indemnity obligations and confirm insurance requirements with project owners and subcontractors before mobilizing equipment.
Frequently Asked Questions
Does a standard contractor policy cover equipment taken onto water?
Often it does not; many standard policies exclude waterborne equipment and you may need a separate marine equipment policy or endorsement.
What is a marine floater and when is it used?
A marine floater covers temporary floating structures, scaffolding, or platforms used during a project and is used when those items are not covered by a builders risk form.
How does a "knock for knock" agreement affect insurance claims?
Under a knock for knock agreement each party typically agrees to look to its own insurer for losses, which can simplify recovery but may limit subrogation between parties.
Do I need a separate watercraft liability policy?
If you operate boats or barges as part of the work, separate watercraft liability coverage is generally advisable to cover damage or injury the vessel may cause.