Kodiak harbor board resumes talks on requiring insurance for boats in city harbors

The City of Kodiak Port and Harbors Advisory Board on Tuesday, Oct. 27, will continue its work on requiring insurance for boats moored in city harbors.

A Jan. 29 memo to the City Council from Port Director and Harbormaster Dave Johnson tallies what uninsured boats have cost. The Ohana sank in February 2024, causing about $24,800 in damage to harbor infrastructure that the city could not recover. The Josephine burned and sank in January, damaging a nearby moored vessel. That same month, the Lindy II sank at the dock, destroying a finger float and leaving a slip unusable. Other harbor users were left with the costs of refloating and disposing of it.

When the insured fishing vessel La Mer sank at the dock, its insurer paid the city $13,677.71 for float damage. "Without an insurance requirement, the City effectively assumes the role of insurer of last resort for private vessels," Johnson wrote.

In April, the board unanimously directed staff to draft all the documents needed to require insurance for boats in the harbor.

A revised mooring agreement in the meeting packet would require boat owners to carry at least $2 million per occurrence in commercial general liability insurance. The city's 2007 agreement asked for proof of insurance only when the city believed a boat was unseaworthy.

An undated letter to harbor tenants and guests, signed by Johnson, asks each boat owner for an updated moorage agreement, current registration and proof of insurance listing the city as an additional insured. It says turning these in "will be a condition of moorage effective July 1, 2026." The packet does not say whether the letter was sent or whether that condition is being enforced.

The packet also includes insurance rules from other Alaska port cities. Homer requires commercial boats to carry at least $500,000 in coverage. Seward requires $1 million in coverage for boats carrying passengers for hire.

At an Oct. 20 City Council work session, Council member Nick Mangini said the insurance requirement could also help the city confirm vessel lengths for billing. "It's a good opportunity to get everybody on a level playing field," he said. A consultants' review of harbor billing found that about one in four moorage billing lines tested did not match the published rate and the signed vessel record. Most of those involved a vessel length in the billing system that differed from the signed mooring agreement.

The board will take public comment at its 10 am meeting at Fisherman's Hall.