Nov 06 2026 14:00
Year-End Marine Insurance Review: What Changed in Your Operation?
Why a year-end marine insurance review matters
Most marine insurance problems I see are not caused by bad policies. They are caused by good policies that describe a business that no longer exists.
A tug gets repowered. A contractor picks up a dock job two states over. A seafood company starts using a new cold storage facility. Nobody calls the broker, because nothing went wrong. Then something does, and the underwriter pulls out the application from three years ago.
I have been brokering marine risks since 1994, and my family has been in this business since 1966. The single most useful hour our clients spend with us each year is the year-end marine insurance review. It is not a paperwork exercise. It is where we find the gaps before a claim finds them for you.
Below is the checklist our team at Lightship Maritime works through with vessel owners, tug and barge operators, marine contractors, marinas, shipyards, cargo owners and seafood companies before the new year.
1. Vessels, Equipment and Agreed Values
Start with the hardware. Did you buy, sell, charter, lease, rebuild or repower a vessel this year? Did you add a crane, a new winch, electronics, a tender, refrigeration or towing gear?
On a Hull and Machinery policy, the agreed value is the number that matters most when a vessel is a total loss. If you put a new engine in a boat insured at last decade's value, you may be carrying that difference yourself. The reverse happens too. Owners keep paying premium on a value the vessel could not fetch today.
We also want to know about changes in use. A fishing vessel that starts doing charter work, or a tug that starts doing contract tows instead of harbor-shifting work is a different risk to an underwriter. Navigation limits, lay-up periods and crew warranties often hide in the fine print, and they are worth a second look every year.
2. Routes, Navigation Limits and Cargo
Where did your vessels actually go this year? Puget Sound, the Inside Passage, the Gulf of Alaska and the open Pacific are not the same risk, and your policy's navigation limits may not stretch as far as your work did.
The same goes for barge operators who added routes and contractors who took jobs in new waters. If the trading area on the policy does not match where you operate, that is a conversation to have now, not after a loss.
For cargo owners and seafood companies, the questions are about what moved, how and where it sat. Did you add new commodities, higher values, temperature-sensitive product or international shipments? Is inventory now sitting at a third-party cold storage facility? Ocean Cargo insurance and Stock Throughput coverage respond very differently depending on custody, storage location and whether refrigeration breakdown is covered. These details decide claims.
3. Contracts, Customers and Subcontractors
This is where we spend the most time with clients, and where the biggest surprises live.
Every new charterparty, tow contract, terminal agreement, marina lease, shipyard contract or construction agreement comes with insurance language. Indemnity clauses, additional insured requirements, waivers of subrogation and minimum limits are routinely written by the other side's lawyers to shift risk onto you. Signing one does not make your insurance policy agree to it.
Our team reads these contracts against your actual coverage. If a tow contract makes you responsible for the tow, or a project owner wants primary and non-contributory wording your policy does not provide, you want to know before you sign.
If you brought on subcontractors this year, collect their certificates of insurance and confirm what they are actually responsible for. Their gap can quickly become your claim.
4. Crew, Payroll and USL&H or Jones Act Exposure
Maritime workers' compensation is one of the most misunderstood areas in marine insurance, and it is where a misclassification can get expensive fast.
A seaman injured aboard a vessel generally brings a Jones Act claim, which is typically handled under your P&I or Maritime Employers Liability (MEL) coverage. A dock worker, shipyard employee or marine construction worker on the shoreside may fall under the Longshore and Harbor Workers' Compensation Act instead, which calls for USL&H coverage. State Workers' Comp alone usually does not answer either one.
So tell us what changed. Did crew size grow? Did shoreside staff start working aboard vessels, or deckhands start working on the dock? Did you add seasonal labor or a maintenance crew? Current payroll by job duty is what lets us confirm the right coverage is in place.
5. Docks, Storage and New Services
Changes on shore matter as much as changes underway. Did you move to a new dock, add slips, lease a warehouse, start using a new cold storage facility or switch repair yards?
Marinas and shipyards should look closely at customer vessels in their care, haul-out and launch work, repair services and environmental controls. Ship Repairers Liability and Marina Operators Legal Liability are written around specific operations. When the operation changes, the coverage needs to follow.
Then ask the bigger question: did you start doing anything new? Towing, vessel management, passenger trips, equipment rental, freight handling, cold-chain distribution and repair work all carry their own exposures. A policy written for what you did last year will not automatically pick up what you started this year.
6. Claims, Near Misses and Pollution Risk
Underwriters price the future by looking at the past, so your loss history is part of every renewal whether you bring it up or not. We would rather bring it up first, with context.
Gather the year's claims, injuries, cargo damage, equipment failures, spills and near misses. A near miss you fixed is a good story to tell an underwriter. It shows a crew and a management team that pay attention. Updated safety procedures, crew training, maintenance logs and emergency plans make that story stronger.
Pollution deserves its own line item. Vessel Pollution Liability, often written alongside P&I, responds to fuel and oil spill exposure that many operators underestimate until they get the cleanup bill. If you added fuel capacity, changed fueling procedures or started working near sensitive waters, let us know.
7. Cyber and Wire Fraud
The marine industry runs on email, electronic navigation, scheduling software and wire transfers. That makes it a favorite target. A spoofed email asking you to update a vendor's bank details is one of the most common ways operators lose real money, and a standard liability policy typically will not pay it back.
Review who can approve a wire, how you verify a change in payment instructions, and who has remote access to your systems. If you added online payments, new software or outside IT vendors this year, those belong in the review too. Marine Cyber coverage and Social Engineering Fraud coverage are available, and the conversation is worth having even if the answer is to tighten controls first.
8. Your Plans for 2027
The review is as much about next year as last year. Tell us about vessel purchases, refits, new routes, construction bids, acquisitions, staffing growth or new services you expect in 2027.
Here is why timing matters. Marine underwriters want surveys, contracts and specifics before they quote. Builder's risk on a refit, a new barge added mid-term or a large project with unusual contract terms can take weeks to place properly. When we hear about a project early, we can go to the right markets with a clean submission instead of a rushed one. That usually shows up in the terms you get.
Your Year-End Marine Insurance Review Checklist
Bring what applies to your operation. You do not need all of it to get started.
- Updated vessel and equipment schedules with current values, plus any recent surveys
- Changes to routes, navigation areas, cargo, customers and services
- New or renewed contracts: charterparties, tow agreements, leases, construction and terminal agreements
- Current payroll by job duty, crew lists and any seasonal or subcontracted labor
- Certificates of insurance from subcontractors and vendors
- Claims, near misses, maintenance records and safety or pollution-prevention updates
- Notes on payment controls, software and IT vendors
- Planned 2027 purchases, refits, projects and expansions
Frequently asked questions
How often should I review my marine insurance? At least once a year, ideally 60 to 90 days before renewal. You should also call your broker any time you buy or sell a vessel, sign a significant contract or change where you operate.
What is the difference between Hull and Machinery and P&I insurance? Hull and Machinery covers physical damage to your vessel and its equipment. Protection and indemnity (P&I) covers your liability to others, including crew injuries, damage to docks or other vessels, and wreck removal.
Do I need USL&H coverage if I already have State Workers' Comp? Often, yes. Employees who work on or near navigable waters, such as dock workers, shipyard employees and marine construction crews, may fall under the Federal Longshore Act, which state workers' comp generally does not cover.
Can a contract I signed change my insurance needs? Yes. Indemnity clauses, additional insured requirements and waivers of subrogation can shift liability to you. Have your broker review marine contracts against your policies before you sign.
Do I need a specialist marine insurance broker? Marine risks are written by a specialized group of insurers, including Lloyd's of London and the P&I Clubs. A broker who works those markets every day knows which underwriters want your type of risk and how to present it.
Schedule Your Year-End Review with Lightship Maritime
Lightship Maritime is a specialist marine insurance brokerage based in Seattle. We place Hull and Machinery, P&I, Marine Liability, USL&H, Ocean Cargo, Stock Throughput, Pollution and Cyber coverage for tug and barge operators, marine contractors, commercial fishing fleets, shipyards, marinas, cargo owners and seafood companies. We have direct access to more than 20 markets, including Lloyd's of London and the P&I Clubs, and our team serves clients across the Pacific Northwest, Alaska, the Gulf Coast, the Southeast and the Caribbean.
If you are already a client, pull together whatever applies from the checklist above and give our team a call. We will set up a time before your renewal.
If you are not a client yet, this is a good time to get a second set of eyes on your program. A review costs you nothing, and it is the best way to find out whether your coverage still fits the business you run today.
Call 407.890.1036 or contact our team online to schedule your marine insurance review.
This article is general information only and is not legal or insurance advice. Coverage depends on the specific policy terms, conditions and exclusions, the insurer, the jurisdiction and the facts of each situation. Talk to Lightship Maritime about your own operation.