A maritime employer’s liability endorsement is essential if you provide employees to work on vessels you do not own. It covers illness, injury, and loss of life to employees when aboard other vessels even though the insured is not the owner.
Types of Policies
If a company owns or charters a vessel, it will obtain a protection and indemnity policy. This type of insurance is similar to vehicle liability coverage. It will generally cover liability for personal injuries to the captain, crew, and employees.
The Jones Act allows seamen to bring a lawsuit against their employers. Maritime employer’s liability endorsement covers an owner’s potential liability under the Jones Act above a deduction or retention amount. This type of policy is usually attached to cover anything over the worker’s compensation limit. It protects your employees working aboard a non-owned vessel and employees temporarily working on a ship you own.
Is Maritime Employers Liability Coverage Required?
Although no law requires it, lack of maritime employers liability coverage can result in costly uninsured exposures for the owner, including:
- Costs involved in defense of a claim, which can be expensive
- Maintenance and cure, wages, and transportation through the end of the ship’s journey
- The possibility of large judgments
Understandingmaritime employers’ liability endorsement is crucial. If you do not know whether your account has liability exposures, consult with an expert on options to prevent uncovered claims.