The numbers have been raising alarms for years. Of 612,677 bridges across the U.S., 9% met the criteria to be considered structurally deficient. The remaining bridges have been on a trajectory to end up in the same condition, given that they average 40 years in age.
As professionals in the marine construction industry are aware, these statistics represent just one symptom of a crumbling marine infrastructure that continues to face new climate-related challenges. Supply chain disruptions add another layer of complexity to the task of keeping up with demand for construction, maintenance, and repair.
With the passage of the Infrastructure Investment and Jobs Act in November 2021, the industry began to see federal funding allocated to address some of these challenges. The law provides for a $17 billion investment in port infrastructure and waterways that, according to a on the legislation, was intended “to address repair and maintenance backlogs, reduce congestion and emissions… and drive electrification and other low-carbon technologies” in addition to strengthening the supply chain.
The bill includes a bridge investment program that allocates escalating funding for five fiscal years: $600,000,000 for 2022, $640,000,000 for 2023, $650,000,000 for 2024, $675,000,000 for 2025, and $700,000,000 for 2026. The Fact Sheet noted that repair and rebuilding projects will have “a focus on climate change mitigation, resilience, equity and safety for all users.”
Greenbacks for green infrastructure
As these notes on the law indicate, the federal government is prioritizing projects that not only rebuild bridges, ports and maritime infrastructure, but do so in a manner consistent with sustainable development goals. As the industry explores these funding opportunities and grapples with increased demand for services, it must also factor green requirements into its project proposals.
As these notes on the law indicate, the federal government is prioritizing projects that not only rebuild bridges, ports and maritime infrastructure, but do so in a manner consistent with sustainable development goals.
The ability to deliver sustainable services will become an increasing competitive advantage in the face of myriad trends — from the growth of the recreational boating market, projected to rise to $22.92 billion by 2026, to the emergence of hurricane seasons that are longer, more active and more damaging. Marine contractors can capitalize on FEMA funding post-hurricane for beach restoration and marina reconstruction. With the right insurance partner, they stand ready to qualify for these projects when open for bidding.
Additionally, companies must address changes in the regulatory environment and new compliance requirements. Their operations must adhere to industry standards of worker safety and protection of property and assets in high-risk environments.
Prioritizing and preparing people
Marine construction insurance coverage must likewise have the capacity to anticipate and adapt to these shifts.
Although chemical, environmental, and respiratory hazards abound in the maritime workplaces, the most common injuries suffered by workers in this labor force nationwide are more mundane. They include:
- Overexertion
- Slips, trips and falls
- Contact with objects or equipment
- Transportation incidents
- Being struck by falling objects
Operating heavy equipment around waterways poses unique safety challenges. Beyond normal wear and tear, equipment can suffer damage or deterioration due to exposure to water or salt in the air. These extreme conditions can overstress pumps and motors, as can improper ballasting during operations, and operators may not know how to conduct thorough maintenance checks.
According to the d, compared to 2020, in 2021 the number of accidents decreased 15.7%, the number of deaths decreased 14.2%, and the number of injuries decreased 17.2%. That’s a good story, but there’s always room for improvement (these statistics actually worsened from to keep things in perspective). The top reasons include:
- Operator inattention
- Operator inexperience
- Improper lookout
- Excessive speed
- Machinery failure
With more vessels on the water, third-party liability risks increase. Inexperienced third-party operators, such as recreational boaters, may collide with marine contractor vessels, particularly at night when visibility is reduced. Operators may come too close to contractor operations and endanger all parties. Proper lighting and markings of equipment will help mitigate these exposures.
Insuring marine contractor opportunities
Marine insurance carriers also employ marine claims specialists who understand the specific maritime laws and liabilities that apply when working on or along the water, and under the current operating environment.
Marine underwriters are a rare breed. Insurers with a long history in the marine market pride themselves on building teams of underwriters who understand the nuances of marine contracting operations. Policies can be tailored to meet an operation’s special needs. These include per-project aggregate limits, coverage for waterborne equipment and contractual legal liability including action over, automatic additional insureds, and flexible sublimits for additional coverages.
In many instances, coverages are packaged together to streamline the insurance buying process, as well as to eliminate possible conflicts in coverage. 色多多视频offers one of the most comprehensive insurance coverage packages available on the market, designed specifically for marine contractors. This program is designed to simplify the insurance buying process and minimize the potential for gaps in coverage should a loss occur.
Among the insurance products available to marine contractors are:
- Marine General Liability includes coverage for products and operations liability for work performed from watercraft.
- Marine Contractors’ Liability provides coverage for property damage to marine structures.
- Commercial Hull and Protection & Indemnity (P&I) protect vessel owners against physical damage to the ship and legal liability.
- Umbrella provides excess liability coverage for companies with major marine exposures. Such policies cover both non-marine and maritime liability exposures - that is, protection and indemnity, general average, collision, general liability hazards, among others.
- Builder’s Risk and Installations includes materials, labor and reasonable overhead and profit
- Contractor’s Equipment provides broad coverage for your equipment
- Property includes insurance for buildings, contents, and business interruption
- Auto can also be packaged with the marine contractor’s program
No two marine contracting businesses are identical. That’s why working with an insurer with a long track record in the marine industry can significantly impact the effectiveness of a contractor’s coverage.
In addition to insurance coverage, our Risk Consulting team offers condition and value surveys for vessels, as well as loss prevention services such as review of operational procedures, contracts, and hurricane storm preparedness plans.
Marine infrastructure whose upkeep has long been neglected is now targeted for repair or reconstruction. For marine contractors, this focus on infrastructure improvements presents tremendous opportunities. Careful risk management and the right insurance coverage will help ensure contractors’ livelihoods, properties and people are well protected.
About the Authors
Brett Musser is AXA XL’s Head of Marine Liabilities in the Americas. He can be reached at brett.musser@axaxl.com. Jonathan Lacorazza is AXA XL’s Head of Hull, Americas. He can be reached at jonathan.lacorazza@axaxl.com.
