Property Types

Marinas

Numerous inherent risks are associated with operating a marina, including chemical storage, petroleum releases, maintenance activities, and waste disposal. Fuels, maintenance fluids, and oils are the most prevalent materials in marinas. In addition, marinas typically have a variety of harmful chemicals, such as paints, solvents, and cleaners. They also store waste, such as maintenance fluids, chemicals, batteries, wastewater, etc. Leaks or spills of these materials can contaminate soils, groundwater, and local waterways. The flammable chemicals used and stored can also increase the risk and severity of fires.

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Environmental Exposures May Include:

Chemical Releases
Storage Tanks
Fuel Releases
Stormwater Run-off
Paint Toxicity and Hull Cleaning Hazards
Sewage Releases
Waste Mangement
Illicit Abandonment
Sediment
Accidental Releases During Transport
Moisture Intrusion and Mold

Chemical Releases

Chemicals used in marina maintenance operations may include paints, solvents, cleaners, oils, and maintenance fluids. Storage areas are potential sources of accidental releases from container breaches or leaks and spills. Releasing these chemicals can lead to pollution events and increase the severity of fires.

Storage Tanks

Underground or aboveground storage tanks (UST/AST) can store fuel, oil, waste oil, and wastewater. Accidental releases from tanks can occur suddenly or gradually over time, contaminate soil, groundwater, and surface waters, and lead to costly investigations and cleanups. Fumes or vapors from ASTs/USTs can also lead to bodily injury claims from third parties.

Fuel Releases

Fuel releases can cause contamination of marina surface water and groundwater and pose a fire safety risk. Releases can occur from several circumstances, including overfilling boats, leaking pipes or hoses from tanks and fueling dispensers, or during fuel loading from a delivery vehicle to a fuel tank.

Stormwater Run-off

Stormwater run-off can be contaminated by many sources within the marina, including fuel or oil from storage tank leaks or parking lots, toxic substances from hull and boat maintenance debris (such as paint chips or sanding dust from metal-containing boat paints), sewage, wastewater from vessel cleaning and leaks from stored chemicals. Failure to provide appropriate containment measures can cause polluted run-off to enter stormwater drains or go directly into water bodies.

Paint Toxicity and Hull Cleaning Hazards

Repair, cleaning, and maintenance activities performed in the slip or dockside involve the use of materials that can be hazardous. Paints used on marine vessels can contain metals (such as tin and copper) and VOCs, which can be toxic to humans and aquatic life. Chemical paint strippers can also be toxic. Hull cleaning involving scrubbing the boat bottom can release toxic bottom paints and biocides in the marina basin.

Sewage Releases

Accidental sewage releases from on-site wastewater treatment plants and sewage pump-out and dump stations can migrate into surface water, kill fish, damage vessels and create unsafe conditions for recreational usage.

Waste Mangement

Improper disposal of wastes, including used oil, lubricants, solvent rags, maintenance debris, paints, engine filters, antifreeze, and automotive batteries, can leave the generator of the waste exposed to a potential lawsuit. These wastes can contain hazardous materials that require special disposal or recycling procedures. Businesses, including marinas, must determine whether the waste they generate is hazardous.

Illicit Abandonment

Illegal dumping of pollutants on marina properties, referred to as illicit abandonment, can lead to a costly investigation, cleanup, and waste disposal. It can become the property owner’s burden for cleanup and third-party bodily injury or property damage if law enforcement cannot locate the originator of the waste.

Sediment

Boat operations and dredging can disturb bottom sediment, disrupting the marine environment and causing increased turbidity and potential algae blooms. Construction at a marina can also lead to disturbance of sediments that, if not properly controlled, can impact surface water quality.

Accidental Releases During Transport

Accidental releases during the transportation of petroleum products, chemicals, or wastes by or on behalf of a marina due to improper cargo securement, a loose valve, or vehicle upsets or over-turns can cause environmental harm and liability for marinas.

Moisture Intrusion and Mold

Due to the wet conditions in the area of a marina, buildings present at a marina can be susceptible to flooding, water intrusion, or excess humidity. Mold could develop in these buildings, causing cleanup liability, third-party bodily injury, and property damage claims.

Environmental Pollution Liability Can Provide Coverage For

On-site cleanup of new and pre-existing pollution conditions

Off-Site cleanup of new and pre-existing pollution conditions

Third-party claims for cleanup costs

Third-party claims for bodily injury and property damage

Both sudden and gradual pollution conditions

Defense of third-party claims

Civil fines and penalties

Natural resource damage

First-party emergency response cost

Business interruption resulting from pollution conditions

Aboveground and underground storage tanks

First and third-party transportation pollution liability

Loading and unloading

Mold, legionella, bacteria, and fungi

Non-owned disposal sites

Illicit abandonment

Claims Scenarios & Examples

After receiving several complaints from boaters of leaking fuel, the EPA shut down a marina’s fueling dock. After looking into it further, they found that the line hookups in the fueling system were faulty. The marina faced large government fines and was responsible for cleanup costs that exceeded $500,000.
After a blue plume was noticed on the water at a marina, testing was done, and a significant amount of fecal coliform bacteria was found, indicating raw sewage in the water. Further investigations were ordered to find the exact source, and cleanup efforts had to be undertaken with continued site testing.
A fuel line at a marina failed, spilling four hundred gallons of gasoline into the bay. Several geese were injured by the exposure to the gasoline and received care. No people were injured, but the marina was closed for a few days. Booms were deployed to contain the spill, and cleanup ensued. The marina was liable for the cleanup and the care given to the injured wildlife.
A marina owned vacant land on which they wanted to build a new boat storage facility. The owner went to the site to begin construction and found several piles of unknown waste dumped on the property illegally. The piles were tested and showed that the waste was hazardous. The marina owners had to pay for the waste disposal, which cost over $650,000.
At the pumping station of a marina’s wastewater treatment plant, there was a malfunction with a valve. Due to this malfunction, a pipe ruptured and released raw sewage into a local river. The river had numerous boats and was used by several groups of people, including fishermen, recreational boaters, and marinas. Boats were damaged from the sewage, and marinas had to close their facilities while they waited for the cleanup. Property damage and loss of income claims totaled $400,000.
A marina was found to violate the Clean Water Act due to discharging stormwater without a proper permit. The stormwater had been polluted by painting, paint removal, sanding, dry dock, and boat lifting. The marina was also found to be discharging process water from boat washing, which contained speckles of paint that polluted the water and were a danger to marine life. The marina faced fines of up to $37,500 a day until the settlement was reached.
A marina’s chemical storage area caught on fire, and more than 20 nearby businesses had to evacuate due to the fumes of the hazardous chemical fire. The shutdown of the area remained in effect for several days while the fire was put out and the chemicals cleaned up. Several businesses sued the marina for business interruption, property damage, cleanup costs, and third-party bodily injury. The settlement of all the claims surpassed $30 million.

Final Consideration

Your business can be faced with the cost to defend itself against allegations or legal action from pollution related events, regardless if you are fault or not. Having the proper insurance coverage in place will help fund the expenses incurred to investigate or defend against a claim or suit and provide you with environmental claims handling expertise.

This environmental risk overview offers a general understanding of potential risks and may not reflect all risks associated with your business. Environmental Risk Professionals has compiled this overview for informational purposes only. This overview does not constitute legal opinion or advice, nor does it establish a consultant-client relationship. This overview is not intended to guide project parties in interpreting specific contracts or resolving disputes; such decisions may require consultation with counsel and depend on various factors. © 2025 Environmental Risk Professionals, LLC

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