The requirements for workers’ comp insurance vary from state to state, but there are challenges with paying for employee injuries when the employees aren’t working on land. Companies who operate in the maritime industry are governed by more specific regulations, with the Jones Act and the United States Longshore and Harbors Workers Coverage being the two primary guidelines. As these laws are much different from the injury processes for strictly land-based operations, maritime employers’ liabilities need to be addressed.
Reduce the Financial Costs of Seaman Injuries
Because these maritime laws allow masters and crew members to sue their employers if they are injured during the course of their employment, the employer could face significant expenses throughout the litigation and settlement process. Rather than address these costs through out-of-pocket funds, MEL coverage takes care of the potential liability an employer may have under the Jones Act. As the policy is crafted, considerations are made according to the following information:
- Claims history for the employee
- Payroll, payroll estimates and receipts associated with the Jones Act and USL&H exposures
- Location, nature and duration of work being done
- Both average and maximum number of individuals who will be exposed at any given time
MEL coverage is typically acquired as a stand-alone policy, and it covered employees who are working on a non-owned vessel that is at sea. Consult your broker to find out how much coverage you need and who it applies to.