What is Jones Act coverage? Federal coverage for seaman in the service of a vessel.
Who is eligible for Jones Act coverage? Captain and crew of a owned vessel. Owner of the vessel is not a covered class.
What are the benefits? Typically 3 times the benefits as under state workers compensation.
Can I cover my employees under my workers compensation policy for this exposure? No as the workers compensation policy excludes coverage for this class of employee.
Where and how do I obtain Jones Act coverage? It is typically written on the hull protection and indemnity policy.
How is rate determined? Typically the premium is based on the number of crew.
Typical exposures? Dredge operation employees in service to dredge, dock contractors employees on barge, Charter Boat captain and crew, party boat captain and crew and seaman on large or small vessels such as tugs and freighters.
MEL (Maritime Employers Liability)
What does MEL stand for? Maritime Employers Liability
What is MEL coverage? Covers your employees when they are serving on non-owned vessel in the capacity as a seaman. An example might be your shipyard has repaired a vessel and you had to temporally place an employee on board this vessel for sea trials.
How is MEL coverage purchased? Typically a stand-alone policy.
United States Longshore and Harbor Workers Coverage (USL&H)
What does USL&H stand for? United States Longshore and Harbor Workers
What is USL&H? United States Longshore and Harbor Workers Coverage is Federal satatutory coverage involving all aspects of the marine industry. Benefits are roughly 2 times state Workers Compensation Benefits.
Where do I get USL&H coverage? Written on the standard Workers Compensation policy by code.
Why do I need USL&H coverage? If coverage is required under the act and you do not obtain there is a per day fine and possible imprisonment of officers or owners of the company.
Who does USL&H coverage apply to? Essentially all companies involved in waterfront activities involving interstate commerce facilitated along navigable waters. Typically marinas are exempt from this coverage. Companies which would have exposure, shipyards, boatyards repairing commercial vessels, dredge and dock contractors, electricians, plumbers repairing docks. Dry stack and marina contractors.
What is the cost of USL&H coverage? Rates are typically two times the workers compensation rate.
Can a claim for state workers compensation coverage be filed at the same time federal coverage is applied for? It depends on the state. In North Carolina, claims for both coverages can be filed at same time. In other states, the injured party has to choose between whether to file for standard workers compensation benefits and or federal benefits.
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