What is Maritime Insurance?
Special coverage for businesses, their people and property when bodies of water are involved.
Businesses that have operations and employees who work on or near the water have unique insurance needs. Maritime exposures may not be covered under standard commercial policies for Workers’ Compensation, General Liability, or Property.
Depending on the type of operations and the employees’ job duties, a business may need:
- Maritime Employers’ Liability (MEL) Insurance – covers employees who fall under the Jones Act jurisdiction should they become injured on the job. These are employees whose jobs further the mission of a vessel, such as captain, crew, and other employees who spend a significant amount of time on the water.
- Maritime Liability Insurance – broad liability coverage for marine-based businesses such as boat dealers, shipbuilders and terminal operators.
- Hull & Machinery (H&M) Insurance – for property damage to vessels and equipment caused by accidents and other ocean perils. H&M is often included in Marine Packages.
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- Protection & Indemnity (P&I) Liability Insurance – shipowners’ coverage for property damage and bodily injury.
- Maritime Pollution Liability Insurance – for costs associated with polluting events, such as fuel spills.
- US Longshore & Harbor Workers (USL&H) Coverage – Workers’ Compensation coverage for longshoremen, harbor workers and other workers that fall under the US Longshore & Harbor Workers’ Compensation Act jurisdiction. These employees need to meet situs and status requirements to qualify.
- Defense Base Act – for US government contractors with civilian workers on military bases outside the US, or under contract for public works or national defense.
Maritime Insurance FAQs
What types of workers are covered by Maritime Employer’s Liability?
Operations with employee who spend more than 30% of their job on the water or furthering the mission of a vessel have exposures for Maritime Employer’s Liability. For example,
- Boat companies
- Dinner Cruises
- Marinas
- Concessionaires
- Divers
- Shipyards
- Safety Consultants
- Engineers
- Marine Surveyors
- Marine Contractors
- Carpenters
- Electricians
- Instrument loggers
- Oil & Gas Services
What types of workers are covered by USL&H?
In general for a USL&H policy, a minimum of 10% of the company’s payroll must have USL&H exposure. Here are types of workers that have this exposure:
- Ship Builders
- Stevedores
- Terminal Operators
- Barge Repairers
- Marine Construction
- Ship Repairers
- Steamship Agents
- Luxury Yacht Builders
- Coal Docks
- Offshore Industries
Who is eligible for HIMI’s Charter Boat Program?
HIMI has a Charter Boat Program with LIG Marine Managers.
- Preferred Classes:
- Sightseeing, dinner and evening cruises
- Ferry boats, water taxis
- Research vessels
- Excluded Classes:
- Parasailing
- High-speed vessels
- Commercial fishing vessels
- Private yachts, Bareboat charters
- Wooden hull vessels of all types
- $20,000 minimum premium
- Swimming/snorkeling/diving exclusion
- Can include a land GL “dock” endorsement on a case-by-case basis.
- Can include land-based equipment on a case-by-case basis.
We are working with specialty carriers, so terms may vary slightly dependent on the carrier. Agents should submit:
- Charter Vessel Application
- For any vessel 10+ years old, a survey of vessel (not more than 1 year old)
- Hurricane/windstorm protection plan
- Copy of Captain’s License
- 5-year loss runs
[My claim adjuster] is extremely experienced at her job, and she does it well.
HEMIC Claimant, November 2023
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