Maritime Employers Liability: When Do Marine Contractors Need It?

If a marine contractor sends an employee aboard a customer’s barge to work on a project, does working aboard that barge automatically make the welder a Jones Act seaman? No. They ultimately become one, but employee status and the applicable maritime law depend on the worker’s actual duties, connection to the vessel, and circumstances, not on where the work happened to take place. That uncertainty is why maritime employers liability (MEL) deserves a place in the account review when a contractor’s employees have vessel-related exposures but may not necessarily qualify as Jones Act seamen.

Where Does MEL Fit?

Different protections apply to different categories of workers. State workers’ compensation covers many land-based employees. The United States Longshore and Harbor Workers’ Compensation Act (USL&H) covers many maritime workers on or near navigable waters, but it excludes masters and crew members of vessels. Seamen, in turn, can bring negligence claims against their employers under the Jones Act.

Maritime employers liability insurance addresses employer liability exposures that those arrangements may not fully cover, such as claims involving employees who work aboard vessels, including those owned or operated by other companies. MEL doesn’t replace the work of determining whether workers’ compensation, USL&H, or the Jones Act applies to a given employee. Instead, it works alongside the coverage already in place for the contractor’s workforce.

Which Employees Might Qualify for Jones Act Protection?

Marine contractors may have employees whose work aboard vessels raises questions about their status under the Jones Act. An employee’s classification affects their legal remedies following a work-related injury and the contractor’s potential liability.

Employees whose duties should be examined include:

• Marine construction crews working from a crane barge or work vessel on a pier, bulkhead, or bridge project
• Drilling and survey technicians who spend time aboard a customer’s vessel to complete a specific job
• Artisan contractors, such as welders, electricians, or mechanics, who perform work aboard a vessel while it is underway

Agents should consider the employee’s duties aboard the vessel, whether the work involves a specific project or a substantial, ongoing connection to a vessel or fleet, and the nature and duration of that connection.

Simply boarding a vessel doesn’t make someone a Jones Act seaman. The employee’s actual duties and relationship to the vessel are central to evaluating potential Jones Act exposure.

What Should Agents Ask?

Employee exposures can change between renewals as marine contractors take on new projects, expand their services, or assign workers to different vessels. A few questions can help agents identify changes that may affect their clients’ maritime liability exposures:

• What work do employees perform aboard vessels?
• How much time do they spend aboard, and how regularly?
• Do their duties support the contractor’s work, the vessel’s operation or mission, or both?
• Do they work aboard company-owned vessels, third-party vessels, or both?
• Have the contractor’s services, vessel assignments, or work patterns changed since the last review?

The answers can help agents identify potential Jones Act exposures and determine whether additional coverage review is needed. Before recommending MEL insurance, agents should examine employees’ actual duties, their connection to a vessel or fleet, and the contractor’s existing maritime coverage.

An annual review gives agents an opportunity to identify changes in a contractor’s operations and address potential coverage gaps. For guidance on MEL and other coverage options for marine contractors, contact Merrimac Marine Insurance.

About Merrimac Marine Insurance

At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ businesses and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.