An effective Maritime Worker’s Compensation Insurance policy is crucial to ensure that your company is financially protected in the event of an injury or accident that occurs onboard a ship. The complexities of international worker compensation insurance are manifold, which is why it is important to have access to reliable information when selecting policies for your business. Knowing what questions to ask will help you avoid hidden liabilities and ensure that your business is properly covered.
First, it’s essential to understand the different maritime worker compensation coverage options for boats and ships. Maritime insurance extends beyond boat owner liability and medical coverage for accidents on board their vessels; there are additional insurances that individuals must take into account. For example, businesses operating on the water must also consider insurance coverage for the effects of weather and piracy. The following information will provide a basic understanding of worker’s compensation insurance and the different types that apply to maritime workers:
- Medical Coverage – This type of maritime workers comp typically covers injuries and accidents at work, regardless of whether it was a direct result of a specific action. The costs associated with the injured person’s recovery are usually covered, from rehabilitation to medical treatment.
- Liability Coverage – It is worth noting that maritime workers’ compensation insurance covers liability to a third party and also protects you from claims related to your negligence (fault). However, there are some exclusions that this coverage does not cover. The first one is punitive damages. Second, it is not responsible for claims related to the shipowner’s bodily injury, his family members, or guests. Third, this coverage does not cover any loss of personal property upon the performance of your duties on board of ships at least 100 gross tons or more in reciprocating internal combustion engine-powered vessels (RIV) (also known as sea-going vessels). This is why professionals need to do the job properly, so they don’t have any issues.
- Injury: Accident and Health Insurances – These types of insurance typically cover accidents and injuries both on and off the job, but they may also include illness. The employer’s liability is not covered; however, this insurance does protect medical expenses that individuals may incur due to such injuries or illnesses sustained while working.
- Weather – This type of insurance may also be included in a comprehensive maritime worker compensation insurance package and covers weather effects on your business. Due to adverse conditions, it can include property damage, equipment breakdown, or delayed arrival/departure.
- Pirates – It is important to consider this type of insurance coverage for businesses that operate at sea. Although the frequency of pirate attacks has been downward since its peak in 2000, it is still considered an industry risk that must be mitigated via business procedures and this type of insurance coverage.
- Protection and Indemnity – This is a more standard type of maritime worker’s compensation insurance coverage that effectively protects your business from third-party litigation.
The above information is just a general overview of common Maritime Worker’s Compensation Insurance types, and the specific requirements for each type will vary by country. To find a comprehensive policy that best suits your business needs, you must work closely with insurance companies who have experience in this industry and understand the specific requirements of international maritime workers’ compensation policies.
Most importantly, keep in mind that although insurance companies can provide you with a list of questions to ask your potential providers, there is no single set of questions that will guarantee a positive experience in securing a policy for your business. You must be willing to do your research and inquiry to ensure that your chosen policy won’t leave your business underinsured.