Marine Employer's Liability vs USL&H: What's the Difference?

If you are a marine employer operating globally, understanding your insurance coverage is critical. Unfortunately, there is a lot of confusion around two important policies: Marine Employer's Liability (MEL) and United States Longshore and Harbor Workers' Compensation Act (USL&H) coverage. Many companies assume they are protected by one when they actually need the other, or both. This misunderstanding can leave your business dangerously exposed.

Let's break it down clearly so you can confidently protect your team and your operations.

What Is Marine Employer's Liability (MEL)?

Marine Employer's Liability insurance is designed to protect employers when their crew members suffer injury, illness, or death outside the scope of traditional workers' compensation or Protection and Indemnity (P&I) coverage.

MEL often comes into play when workers are employed on vessels but are not covered under maritime laws like the Jones Act. It typically covers legal defense costs, settlements, and damages for which the employer may be held liable.

According to the International Risk Management Institute (IRMI), MEL is intended for "employers who do not have U.S. citizen seamen covered under the Jones Act" (IRMI, 2024). This is especially important for businesses employing foreign crew, working internationally, or operating on a variety of different vessel types.

What Is USL&H Coverage?

USL&H insurance refers to the United States Longshore and Harbor Workers' Compensation Act. This federally mandated coverage protects land-based maritime workers like longshoremen, harbor workers, shipbuilders, and ship repairers. These employees are not considered seamen and are not eligible for Jones Act protections, but they perform critical duties related to vessels.

The U.S. Department of Labor describes USL&H as providing "medical care, compensation for lost wages, and rehabilitation services" for employees who are injured while working on navigable waters or in adjoining areas like docks and shipyards (U.S. Department of Labor, 2024).

If your employees ever step foot onto a pier, dry dock, or wharf for work, you could be required to carry USL&H coverage, even if you mainly think of them as vessel workers.

Key Differences Between Marine Employer's Liability and USL&H

While both policies protect employers against liabilities related to employee injuries, they apply to very different circumstances:

• Marine Employer's Liability covers crew working on a vessel, typically offshore or at sea.
• USL&H covers land-based maritime workers or employees working near vessels but not considered "crew."

Confusing the two can lead to serious gaps in coverage. For example, an employee injured while prepping a vessel in dry dock could trigger a USL&H claim. If you only have MEL coverage, you might be left with the bill.

According to the American Equity Underwriters, "the absence of USL&H coverage when needed

can result in substantial financial penalties and exposure for employers" (American Equity Underwriters, 2023).

Why the Confusion Happens

Many marine employers think that if they have a general marine insurance policy, it covers everything related to the ocean, the ship, and the employees. However, that is not the case.

Insurance policies are written to be very specific about who is covered, where they are covered, and under what circumstances. MEL and USL&H were created because maritime work environments are so unique and risky that standard workers' compensation policies just do not fit.

A Global Challenge for Marine Employers

This confusion is not limited to U.S. companies. Marine employers around the world face similar challenges. In Europe, for example, maritime laws and insurance standards vary greatly by country. The European Maritime Safety Agency emphasizes that "national regulations differ considerably," making it essential for marine employers to understand not only their local laws but international insurance obligations as well (European Maritime Safety Agency, 2022).

If you are hiring globally, operating vessels internationally, or even just docking in different ports, you must ensure your insurance program meets the right standards everywhere you go.

How MHG Insurance Can Help

For more than 30 years, MHG Insurance has been helping marine employers navigate the complex world of marine insurance. We understand the challenges you face because we live and breathe marine insurance every day. Our team specializes in finding the right coverage that fits your operation, wherever it takes you.

Marine insurance is not just a product. It is a critical piece of your business continuity plan. And when it comes to protecting your employees and your company, there is no room for guesswork.

Do not leave your coverage to chance. Let MHG help you review your current policies, identify any gaps, and build a comprehensive insurance program that gives you peace of mind.

Final Thoughts

The difference between Marine Employer's Liability and USL&H insurance might seem small, but it is crucial. Having the right coverage means protecting your employees, staying compliant with legal requirements, and safeguarding your business from potentially devastating financial losses.

Contact MHG Insurance today for a free consultation and ensure your marine insurance coverage is shipshape: https://mhginsurance.com

Sources (with URLs)

• IRMI (2024). "Marine Employers Liability (MEL) Insurance." https://www.irmi.com
• U.S. Department of Labor (2024). "Longshore and Harbor Workers' Compensation Act." https://www.dol.gov/agencies/owcp/dlhwc/lsfaqs
• American Equity Underwriters (2023). "Understanding the Basics of USL&H Insurance." https://blog.amequity.com/understanding-the-basics-of-uslh-insurance
• European Maritime Safety Agency (2022). "Maritime Legislation in the EU." https://www.emsa.europa.eu/legal-framework.html

The maritime industry is full of adventure, but it's also full of risks. Whether you're repairing ships, operating a marina, or managing cargo logistics, you're working in an environment where the unexpected can (and does) happen. That's why Marine General Liability (MGL) insurance isn't just a good idea; it's an absolute necessity.

At MHG Insurance , we have been helping businesses navigate marine insurance for over 30 years. Our expertise ensures that maritime professionals have the right coverage for their unique needs so they can focus on running their operations with confidence.

What is Marine General Liability?

Marine General Liability insurance is designed to protect businesses that operate in or near water. It provides coverage for bodily injuries, property damage, and pollution liability-risks that standard Commercial General Liability policies often exclude. In short, MGL is built specifically for the marine world, covering the risks that come with shipyards, docks, vessels, and everything in between.

One of the most critical aspects of MGL is its care, custody, and control coverage. This means that if you're a ship repairer, stevedore, or marina operator or any other conventional marine trade, working on someone else's vessel or cargo, you're covered if an accident happens while it's in your possession. Without this specialized protection, your business could be left high and dry in the face of costly claims.

Who Needs This Insurance?

If your business operates in a marine setting, MGL isn't optional; it's essential. Ship repairers performing alterations or maintenance on vessels need MGL to cover damages while the ship is under their care. Marina operators rely on it to help protect against claims by vessel owners docked or moored at their location.

Stevedores and terminal operators, responsible for loading and unloading cargo, also face unique risks that require specialized coverage. Boat builders and marine construction contractors also need MGL to ensure they're protected against property damage or injuries that could occur on-site.

Without the right coverage, a single claim could result in major financial losses, whether it's from a minor accident or a catastrophic incident. MGL acts as a safeguard, ensuring that maritime businesses stay afloat even in turbulent waters.

Marine General Liability vs. Commercial General Liability

One of the biggest misconceptions business owners have is assuming that a standard Commercial General Liability policy will protect them in a marine environment. However, CGL policies are designed for land-based businesses and typically exclude claims arising from property in their care, custody, and control and any liability arising from the ownership/operation of watercraft.

Marine General Liability is tailored specifically to maritime operations, covering risks that traditional CGL policies won't touch. For example, if you're installing navigation equipment on a yacht or welding on a cruise ship, a CGL policy wouldn't cover damage to the vessel. MGL, on the other hand, is designed for these exact situations.

Simply put, if your business operates on land, CGL is what you need. If you work in the marine industry, MGL is the only way to ensure you're properly protected.

What Does MGL Cover?

MGL covers a wide range of incidents that can occur in maritime settings. If a customer slips and falls at your marina, MGL helps to cover legal fees and medical expenses. If you're repairing a yacht and accidentally damage the hull, MGL ensures you're not left paying out of pocket.

It also provides limited coverage for pollution liability, which is particularly important in the marine industry. If an accident results in an oil spill or hazardous material leak, cleanup costs and environmental damages can be astronomical. MGL helps mitigate those financial risks so that your business isn't sunk by a single mistake.

Another key coverage area is contractual liability. Many shipyards, ports, and vendors require businesses to carry specific insurance before they can begin operations. MGL helps you meet those requirements while also offering protection in case of disputes or unforeseen damages.

What Marine General Liability Doesn't Cover

While MGL provides broad coverage, it's not a catch-all solution. It does not include any liability arising from injury to employees or independent subcontractors. A Worker's Compensation policy is needed to cover this exposure. It also doesn't cover Hull & Machinery insurance, meaning you'll need additional coverage for physical damage if you own and operate vessels.

Professional liability, also known as Errors & Omissions (E&O) insurance, isn't included in MGL either. If you provide consulting, design, or engineering services, you'll need E&O insurance to protect against claims related to negligence or faulty recommendations.

Understanding these exclusions is crucial for ensuring your business isn't left exposed. Pairing MGL with the right complementary policies helps to create a secure safety net.

How Much Does a Policy Cost?

The cost of an MGL policy will vary based on several factors. The nature of your operations plays a significant role; ship repairers, for example, face different risks than marina operators. The primary rating factor under a standard MGL policy is your business's estimated revenues, which should include both sales generated from manual labor and sales generated from the sale of parts and materials. The size and scope of your business and your claims history can also impact pricing.

Coverage limits and deductibles can affect costs as well. Higher limits provide more protection but may come at a higher premium. Companies that implement strong risk mitigation measures, such as safety training and environmental protections, may be able to lower their costs by demonstrating lower exposure to claims.

While the price of an MGL policy depends on multiple variables, one thing remains constant: the cost of not having coverage can be far greater. Without MGL, a single accident or liability claim could lead to financial devastation.

Why You Shouldn't Operate Without MGL

Marine businesses operate in one of the most challenging environments in the world. Water, weather, and human error all create an unpredictable mix of risks. Without the right insurance, a routine job can turn into a financial disaster overnight.

Marine General Liability ensures that businesses are protected from the unique risks of the maritime industry. It covers accidents, injuries, property damage, and environmental incidents that could otherwise jeopardize operations.

For over 30 years, MHG Insurance has been a trusted expert in marine insurance , providing tailored solutions for businesses in the industry. Whether you need Marine General Liability, Marine Employer’s Liability , a Bumbershoot policy , or USL&H coverage, our team will assess your risks and help you secure the right protection to keep your business covered while meeting insurance requirements. Contact us today to learn more about coverage options and to get a quote!

         
Ship and yacht repairers play a crucial role in keeping the marine industry running smoothly. Their expertise and hard work ensure vessels remain in top condition. Given the risks they face daily, it is crucial for them to have the appropriate insurance protection. Conor Hayes, Sales Director at MHG Insurance and a specialist in marine liability coverage, joins us for a Q&A session dedicated entirely to the unique insurance needs of ship and yacht repairers.

With over 20 years of experience, Conor has held senior brokerage roles in London, the Cayman Islands, and South Florida. Conor helps businesses navigate complex insurance challenges with confidence, ensuring they have the right coverage to protect their operations and assets.

Let’s get started!

Q: With your extensive industry experience, how have liability insurance requirements for repairers evolved over the years?

Matching the changes in the industry, the risks assumed by repairers have become more extensive and more complex.

Q: How have liability risks for ship and yacht repairers changed over the past decade?

As marine technology has evolved, the work itself, of many classes of ship repairers , has become more sophisticated, more complex, thereby increasing the need for qualified crew and a heightened need for training.

Increasing complexity often leads to increased probability of error. More stringent contractual requirements imposed upon repairers in their agreements with vessel owners and managers have shifted risk of loss to repairers.

With this in mind, it’s important to keep close contact with your insurance provider, who can also guide you in understanding what your policy covers, and what is not covered.

Q: What emerging risks should repairers be aware of in today’s marine industry?

Again, it is the increasing complexity and sometimes conflicting demands of the ship owners that create almost an impasse for the companies that are being hired to repair the vessels. For example, many cruise lines tend to issue a rather generic list of insurance requirements that are not always applicable to the operations of the vendor that is applying to do the work. We often see requests to carry domestic Workers Compensation and Commercial Auto Liability, which does not make much sense when the repairer is undertaking a project in foreign territories such as Singapore and Australia.

What key industry trends are shaping marine insurance, and how might they impact repairers?

For the first time in many years, there are signs that underwriters are starting to become somewhat more forgiving in terms of rating. Whether this is a trend that will play out over time remains to be seen. The global pandemic of 2020 did a number on the ship repair industry, particularly anything related to the cruise lines, but this niche sector has begun to show signs of recovery.

I consider it part of my job to stay on top of emerging trends like this so that my clients don’t miss anything.

What common gaps do you see in repairers’ insurance coverage, and how can they avoid them?

When coverage falls short, it is usually due to one or more liabilities assumed under contract by a repairer not being properly addressed in the policies maintained by the repairer.

When working across different global regions, what should repairers look for in their insurance policies to ensure compliance?

The marine industry operates on a global scale, and while many aspects of ship repair, such as propulsion systems and electronic equipment, remain consistent across regions, insurance requirements can vary. One crucial factor to consider is policy territory. If a loss happens anywhere in the world, the policy must have coverage in that location. Ensuring worldwide coverage helps repairers stay protected no matter where their work takes them.

Beyond standard liability coverage, what additional insurance policies do you recommend for ship and yacht repairers?

It really depends on the nature and scope of operations. Most ship or yacht repairers require the basics: Marine General Liability that is endorsed with coverage for Ship Repairers Legal Liability (SRLL) and Maritime Workers Compensation (USL&H) if they have employees working on or adjacent the navigable waters of the U.S.

That said, there are other situations that come into play and are highly individual. For example, what if the shipyard or marina require higher limits of liability? That is when a Bumbershoot Liability policy comes into play.

Do they own vehicles? If so, Commercial Auto Liability is a necessity.

Are there any employees working aboard vessels in navigation? The insurance solution for this is Marine Employers Liability.

There are a multitude of different factors and contingencies to consider, which is why it is imperative to consult with a proven marine insurance specialist.

Are there specific endorsements or policy enhancements that repairers should consider for added protection?

The requirements of repairers vary from one entity to the next. It is not necessarily a case of your insurance broker having a ready-made list of “standard endorsements,” as it is the person you rely on who has a consistent, organized approach to their work. For example, for coverage to be in place under a Marine General Liability policy, the central form in a repairer’s portfolio, any claims must arise from the negligence of the insured, its subcontractors, or its employees.

Today, it is not uncommon for the laborer performing the work of the repairer not to be subcontractors or employees in the traditional sense. It is a problem that can be addressed, often easily. Still, the repairer’s insurance representative must have the expertise to address it. 

What are the biggest factors that impact the cost of liability insurance for repairers?

Simply put, it is the class of work and the insured’s loss record. The more hazardous a risk is assumed to be, the higher the rate. The cleaner the loss record, the lower the rate tends to be.

What proactive steps can repairers take to minimize their liability exposure and strengthen their risk management strategies?

Review all written contracts closely and continuously train employees in best practices.

In your opinion, what sets MHG Insurance apart from other marine insurance brokers?

This one is straightforward: proven expertise.

MHG has been a market leader in the marine insurance industry for well over three decades. We are not ‘generalist insurance experts’ and nor do we ever wish to be perceived as such. We continue to capitalize on the mistakes of other brokers who masquerade as marine insurance specialists but are actually not. All it takes is a quick review of the policies put in place to determine whether the competitor knows what they are doing.

Navigating the complexities of liability insurance for ship and yacht repairers requires expertise and the right coverage. Whether you're reviewing your current policies or seeking guidance on emerging risks, working with a specialist can make all the difference.

For expert advice and tailored marine insurance solutions, visit MHG Insurance or call us today. Let’s ensure your business stays protected.

 

Commercial General Liability insurance is designed to cover land-based operations. Typically, there is an exclusion in most CGL policies for any work done onboard ship, docks, or piers. The reason for this exclusion is that marine risks are better suited for a Marine General Liability policy. One major area of concern for a marine risk is the coverage for care, custody, and control. This coverage is critical for ship repairers especially and is a standard coverage on an MGL policy.

A Look Back

A General Liability policy doesn’t include watercraft coverage; including the ownership, maintenance, and use of watercraft owned by you, the insured. The client, shipyard or vessel may never know all these exclusion by just looking at a certificate of insurance. The forms and endorsements are included in the policy wording- which brings up the fact that an experienced insurance broker could help you when it comes to the specifics of policy exclusions and/or benefits.

Commercial General Liability

Commercial General Liability policies protect business owners against claims of liability for bodily injury, property damage, and personal and advertising injury (slander and false advertising). Premises/operations coverage pays for bodily injury or property damage that occurs on your premises or as a result of your business operations. Products/completed operations coverage pays for bodily injury and property damage that occurs away from your business premises and is caused by your products or completed work.

Marine General Liability

Marine General Liability policies are designed specifically for those who work on vessels, docks, and ports. These policies include coverage for Marine Contractors, ship repairers, and others who work on or near water.

Why didn’t I Know about This?

Often, contractors that perform work such as carpentry or welding will be asked to do work on a ship or in a port. Their normal operations are on land and they carry CGL coverage. Many do not realize that their current policy will not cover them for work done on a vessel or on a dock. Most shipyards, vessels, and ports don’t check the coverages listed on a certificate of insurance provided by the contractor, they may let them work with improper coverages, not knowing the exclusions that the contractors have in their policies. This is where the problem arises, since they may not be covered in the event of a loss or accident.

Why aren’t Marine Contractors Covered?

Commercial General Liability policies are not designed to cover marine operations. In order to offer coverage for a risk, the underwriter needs to understand the operation. Class codes are used as a way for an underwriter to rate a risk and determine the premium paid. Class codes are also a way for an insurance company to decide what types of business they want to insure. It is important that the company that insures your business understands exactly what you do and how you do it. Otherwise, you may be paying for a policy that will not cover a loss specific to your business. Marine businesses are best insured by a marine underwriter with an insurance company that is familiar with the marine industries.

Working with an expert insurance broker, like the brokers at MHG Insurance Brokers, can help you obtain a policy that specifically addresses your needs and is customized to your benefit. Remember, cruise lines and marinas require proof of appropriate insurance coverage before any job can begin, so make sure you have the right policy in hand. To learn more about the advantages of Marine General Liability coverage, contact an MHG broker today by visiting mhginsurance.com or calling 954-828-1819.

Filing an insurance claim can be a confusing and lengthy process. In many cases, people have never been involved in a claim before. They may not think to do things in the moment that may help them later during the claims process. Let us help by offering some tips when filing a Marine General Liability insurance claim.

Call Insurance Agent and Insurance Company

The most important place to start when there has been a loss is with your insurance agent. If you are unsure whether a claim should to be filed, your agent can help. Your agent will collect the necessary information, and guide you with the next steps that you will need to take. Do not hesitate to contact your agent, he or she handles claims daily and will be able to give you advise that can save you time and aggravation.

List All Damages Incurred

Make a list of all the damages that have been incurred. Some damages may not be obvious, and may require further investigation by the adjuster or another trained professional. Make notes of any specifics about the incident like time of day, weather, and people present at the time of the incident.

Take Pictures

Having proof of damage can affect the outcome of a claim. If an incident occurs, take pictures to document the damage to property as soon as possible. This will help the adjuster if emergency repairs need to be completed to prevent further damage. Keep all photos and receipts for emergency repairs in a safe place and be sure to hand them off to the adjuster as soon as possible.

Prevent Further Damage

After assessing and documenting the damages, do what you can to prevent further damages from occurring. Whether that means clearing the area of other materials, or securing machinery, do what you can to limit the extent of the damage. It is also important to exercise caution when trying to prevent further damage. If it is not safe to be in the area, do not risk injury to yourself or others by trying to limit damages to property.

Who Should the Company Contact to Follow Up on Claim?

It is important to organize who will oversee the claims process within your company. Make sure this person has access to certain information about your business that may be needed during the process. Also, having one person be in charge may also make this process more efficient and ultimately help close the claim faster.

Having the proper insurance coverage is crucial for the success of any business, and every business needs coverage specific for its characteristics. If you have any more questions, would like further explanation, want to change your general liability policy to a marine general liability policy, or are interested in any other form of business insurance, please contact us by calling 954-828-1819 or visiting mhginsurance.com. We look forward to assisting you with all your insurance needs.

No matter what type of business you have, every business has unique needs when it comes to liability protection. Especially if your business is conducted near or on the water, such as marinas and shipyards. Marine general liability coverage is necessary for businesses of this nature. There are some businesses who aren’t aware of the difference between marine general liability and commercial general liability. One difference is that commercial general liability policies often include an exclusion for work done on or near water. This is important because if the incorrect policy is purchased, there may be no coverage at the time of a claim. Claims typically happen when you least expect them. The following are three common marine general liability claims. 

Slip and Falls 

We are all familiar with slip and fall accidents. Businesses on or near the water can create more opportunities for wet floors, or other areas of moisture. It is important to have proper signage around your property/building giving warnings of “slippery when wet.” Installing non-skid flooring is another way to help prevent a slip and fall claim. Keep in mind that slip and falls can happen whether there are wet floors or not. No matter how much precaution you take, you still need proper insurance coverage in case of a claim.

Damage to Someone Else’s Property

Just as damages and mishaps can happen on your property, they can happen on others’ property as well. If your business involves employees doing work at a marina, shipyard or private dock, you may be held liable for damage caused by your employee. Properly train your employees, and provide safety procedures that employees are required to follow at every location. Marine contractors that do work involving welding are especially vulnerable to this type of claim.

Pollution Liability

Work done on or near the water involving boats has an inherent risk of a pollution loss. There are state and federal regulations involving pollution both from gasoline and oil. Both substances are used daily in many marine operations. It is very important that the policy include coverage for Sudden and Accidental Pollution Liability. A marine contractor can be subject to stiff fines and penalties for polluting a body of water.

Having the proper insurance coverage is crucial for the success of any business, and every business needs coverage specific for its characteristics. If you have any more questions, would like further explanation, want to change your general liability policy to a marine general liability policy, or are interested in any other form of business insurance, please contact us by calling 954-828-1819 or visiting mhginsurance.com. We look forward to assisting you with all of your insurance needs.

Shipyard owners are concerned with protecting their businesses from exposure to financial damage, especially in the form of lawsuits and liability issues. As part of their ongoing efforts to insulate their businesses from harm, these conscientious proprietors are checking to make sure that the firms they do business with meet all insurance coverage requirements. If your maritime business lacks the necessary USL&H coverage, you could find yourself facing the harshest of penalties – including the loss of valuable contracts, the imposition of stiff fines, and even actual jail time!

Does your business have the USL&H coverage it needs? Find out by perusing this handy guide on the key facts of Maritime Workers Compensation coverage:

USL&H Is a Requirement to Work on Board Vessels 65' or Greater in Length or at a Dock, Port, or Shipyard

USL&H, which refers to the Longshore and Harbor Workers’ Compensation Act, was enacted to provide compensation to employees in the event of their injury or death while performing maritime work on board a vessel or at a dock, port, or shipyard on navigable waters of the United States. USL&H is federally mandated, which means companies that fail to obtain Maritime Workers Compensation coverage as required are subject to stiff penalties that can include fines of up to $10,000 and incarceration in prison for a year. Even more seriously, uninsured employers and company officers may also be held personally and severally liable for compensation and any other benefits that may accrue to an injured employee.

USL&H Is Workers' Comp Coverage for Contractors Working on/with Vessels

USL&H coverage provides benefits similar to Workers' Compensation to contractors performing any maritime work on or with vessels on navigable waters of the United States. Accidental injuries, occupational diseases, and death arising from the employee's employment are covered by Workers' Comp; similar benefits accrue to maritime employees under USL&H coverage. Even contractors’ employees who have "incidental USL&H" exposure, such as electricians, heating and AC contractors, flooring installers, and other personnel performing repairs on equipment located on a boat, are covered under Maritime Workers Compensation if they suffer any damage while performing their duties.

Shipyards Can Require USL&H Coverage for Even a Single Employee

While USL&H benefits are similar to benefits provided by Workers’ Compensation Insurance, the rules are far more stringent. Workers’ Comp is only required for businesses with four or more employees in Florida, other states may vary, including owners unless they are exempt. Contractors that fall under USL&H guidelines, however, need to provide coverage even if only one employee at their company will be performing qualifying work.

Carrying Inadequate Marine Insurance Coverage Can Be Costly

In addition to Maritime Workers Compensation benefits, MHG Insurance Brokers also provide marine general liability insurance, which protects you in the case of liability or property damages to a third party while engaged in marine related operations. Marine general liability insurance is an absolute necessity for any business providing repair or other services on vessels, as even seemingly minor damage to a boat can prove to be expensive. Now that you know the relevant details about USL&H – shipyards are checking if you have it, Federal law requires you to carry it, and there are stiff penalties for companies that do not have it - the experienced Insurance Specialists at MHG Insurance Brokers can help you obtain the USL&H policy that best suits your needs.

At MHG, we understand the unique environmental conditions of working on the sea, as well as the accompanying challenges. We strive to help marine companies find the best, most affordable coverage to suit their requirements.

To learn more about USL&H coverage, marine general liability insurance, and other marine insurance plans, call MHG Insurance Brokers at +1 954 828 1819 or visit us online at mhginsurance.com

Getting injured on the job is a nightmare for all parties involved. Even more so when that injury prohibits you from being able to work. That’s where workers’ compensation insurance comes in, to protect workers and employers in the event of an injury. Having a workers’ comp policy in place is even more crucial in the marine industry thanks to certain rules and regulations put in place to protect workers and those who are at risk. Depending on what category your business or work falls into, it may not be up to the business owner or decision maker to decide whether they need a workers’ comp policy. Thanks to the United States Longshore and Harbor Workers’ Compensation Act (LHWCA also known as USL&H), those who work in the maritime industry and fall into certain categories, will have coverage that is required by the federal government, not just the state. Having peace of mind when it comes to coverage can help rid your life of the question, “What’s going to happen to me if I’m injured at work?”

What Is It?

The Longshore and Harbor Workers’ Compensation Act is a law that was put in place by the United States federal government to assure the coverage and minimize the impact of injuries and death for employees and their families in the marine industry. It’s no secret that those who work in the marine industry can be seen as higher risk employees due to the jobs they perform. This law requires employers to provide sufficient workers’ compensation coverage since it is often a major expense for most businesses.

What Does It Do?

The Longshore and Harbor Workers’ Compensation Act provides workers’ compensation for anyone working in a marina or on the water. It protects you from injury and occupational disease while on the job. Benefits are only available to those maritime employees who meet certain criteria known as a “Status” and “Situs” test.

Status Test- The Status Test is associated with the with the work that is performed by the employee. Basically, the test decides whether you are performing “maritime” work. This is important because to be eligible for benefits under the act, it must be determined that employees are performing “maritime” work for the employer.

Situs Test- The Situs Test is associated with the location that the employee has performed the work. After determining whether a worker is a maritime employee, they then must determine if the work was performed on, near, or adjacent to navigable water.

How Does This Benefit Me?

The Longshore and Harbor Workers’ Compensation Act gives employees to the power to file claims for injuries that happen while at the workplace. Much of workers’ comp is through state legislation, however being that this one is administered federally, you can have the option to use both your state’s system as well as the federal system, just not at the same time. The Federal Process is a lengthy one, but it’s good to know the coverage is there for when the employees need it. The state coverage can provide benefits while the federal reviews the benefits available under the USL&H laws.

Workers’ compensation insurance should be a top priority for all businesses. If you would like more information on workers’ comp or the LHWCA, or are interested in purchasing a workers’ comp policy, or any other form of property & casualty insurance, or group health insurance for your employees, please contact us at 954-828-1819 or visit us online at mhginsurance.com. Our insurance specialists have the knowledge and experience to cover your company’s risks appropriately.

No matter what type of business you have, every company has unique needs when it comes to liability protection. Especially if your business is conducted near or on the water, such as marinas and shipyards. Marine general liability coverage is necessary for businesses of this nature, however there are some business owners who aren’t aware of the difference between Marine General Liability and Commercial General Liability. So, let’s look at a few reasons why you might need a Marine General Liability policy (MGL) over a Commercial General Liability policy (CGL).

Define the Difference

One easy way to understand what type of policy best suits your business is by defining the different types of insurance.

Commercial General Liability policies protect business owners against third party claims for bodily injury, property damage, damage to premises, fire damage to premises caused by negligence of the insured, and personal and advertising injury (slander and false advertising). These policies are designed for business that conduct their operations on land only. Most contain specific exclusions for work done on watercraft and any work done over water. The standard Commercial General Liability policy will also not extend liability for anyone operating a watercraft or for damage to a watercraft that is in the insured’s care, custody, or control.

Marine General Liability policies will respond to a third-party claim for liability in the same way as a Commercial General Liability policy and they will also include coverages designed specifically for those who work at sea. These policies include coverage for marine contractors and others who work on or near water. They provide coverage for the typical liability risks that businesses incur, which are covered in a standard commercial general liability policy, and may be endorsed to offer additional, more specific protection that addresses the more unique needs and potential risks associated with maritime operation, such as:

• Liability when renting or leasing a boat or watercraft. Protection includes property damage to the vessel, as well as pier damage;
• Liability and hazards faced by marina operators, and includes property and structure damage protection;
• Liability met by terminal operators against loss or damage of cargo;
• Liability met by operators and owners of piers or wharves, covering damage to property of others while in their custody, including tugs, tows, cargo and equipment.

 

Many are Uninsured or Underinsured

Companies may try to save money by choosing a policy with a lower premium. The problem they often face is that they may be purchasing a policy that specifically excludes the work they do on a daily basis. Even if you spend the majority of your time working on land, one project on a ship or over water might lead to a claim that is not covered by a standard Commercial General Liability policy. Your insurance broker should consider your risks, as working around water means specific coverages are needed.

Custom Plans are Available

Marine General Liability coverage can be tailored to include hull and P&I, international liability, contractor’s equipment, and more.  It is essential to seek the advice and information from a trusted, knowledgeable broker, such as MHG Insurance Brokers. The team at MHG Insurance Brokers is well versed in the risks and coverage requirements of those who work in the industry. MHG Insurance Brokers works with you to determine your specific needs and budget, and will create a comprehensive liability package that will meet every one of those needs.

Having the proper insurance coverage is crucial for the success of any business, and every business needs coverage specific for its characteristics. If you have any more questions, would like further explanation, want to change your general liability policy to a marine general liability policy, or are interested in any other form of business insurance, please contact us by calling 954-828-1819 or visiting mhginsurance.com. We look forward to assisting you with all your insurance needs.

Many people in the insurance industry work hard to avoid the bad reputation that insurance typically carries. However, people often jump to negative conclusions about anything involving insurance. Time and time again, we come across people who have the wrong idea of what an insurance broker is and why they are actually advantageous to the consumer. We have heard they are a waste of time, waste of money, and only care about making their commission. Being a dedicated group of insurance brokers, we can tell you that those descriptions are often false! Everyone is entitled to their own opinion, but when we hear information that is incorrect, it encourages us to step in. Do you know what an insurance broker does?

If you know the answer to, then you are already aware of all the benefits of using an insurance broker. If not, learn why you should be using one. Take the time to find a quality, reputable broker to work with you in fulfilling your insurance needs. Not only will it be time well spent in the beginning, but it will also serve you well for the entire time that you have insurance needs, whether you are working on a yacht or wherever your travels may take you.

Brokers Can Offer More of a Selection

One benefit of an insurance broker is the selection of policies and plans. Typically, brokers can help you select insurance from a variety of different companies. Different insurance companies offer different plans, so having access to plans from multiple companies can afford you the opportunity to find the coverage that fits you best.

Also, depending on the insurance brokerage they may sell different types of insurance, allowing you to have a one stop solution for all your insurance needs.

Brokers Do Much More Than Sell Insurance

While brokers may act as the middle man between you and the insurance company, they can be so much more than that. An insurance broker will conduct research for you, file and assist you with the claims process, and work to get you the best coverage option for your situation. Often times a broker has direct connections with decision makers at the insurance companies so you may not have to sit on a 1-800 line for a long time, only to learn someone doesn’t have the authority to help you. Brokers also know which carriers provide consistent service, allowing you to avoid companies that may not deliver the level of care that you deserve at time of claim.

We Work for You

As brokers, we do not work for any insurance company, we work for you! Our goals are to please you, and make sure all you questions and concerns are handled. If you think about it, with all the benefits of using an insurance broker, it is certainly better than just going out and buying a policy from an insurance agent. Will an agent fight for you and your best interests?

Having proper insurance is important in every aspect of life. Whether you are at sea needing international coverage, looking for proper life insurance coverage, going on a vacation, etc. MHG is your specialized broker. Our insurance specialists have the knowledge and experience to find the policy that works best for you. If you are interested in purchasing, or have any questions about marine crew insurance, travel insurance, U.S. life and health, expatriate insurance, or property and casualty, please contact us at

+1 954 828 1819 or +44 (0) 1624 678668

or visit us online at mhginsurance.com.