Table of Contents
- Why Doesn’t Traditional Workers’ Comp Cover Maritime Employees?
- What Unique Risks Do Maritime Workers Face?
- When is Maritime Employers Liability Insurance Necessary?
- What’s the Difference Between Maritime Employers Liability and Worker’s Comp?
- How Can You Protect Your Maritime Workforce with Biscayne Risk & Insurance Group?
Maritime Employers Liability or MEL insurance provides coverage for businesses that employ maritime workers who are not covered under traditional workers’ compensation or Longshore. It can help protect against claims related to:
- Injuries or illnesses sustained while working on or near the water
- Employer negligence claims under the Jones Act
- Legal defense costs related to maritime employee lawsuits
MEL coverage is different from Longshore and Harbor Workers’ Compensation Act insurance, which covers land-based maritime workers like dockworkers and shipyard employees.
Why Doesn’t Traditional Workers’ Comp Cover Maritime Employees?
Most workers’ compensation policies are designed for land-based employees. However, maritime workers fall under federal maritime laws rather than state workers’ comp systems.
Key laws affecting coverage include:
- The Jones Act – It provides injured seamen the right to sue employers for negligence.
- The Longshore and Harbor Workers’ Compensation Act – It covers dockworkers, shipbuilders, and longshoremen but not crew members on vessels.
- The Death on High Seas Act – It provides benefits for families of maritime workers who die beyond U.S. water.
Without MEL coverage, businesses with maritime employees risk significant legal and financial exposure.
What Unique Risks Do Maritime Workers Face?
Maritime jobs come with high-risk conditions that traditional workers’ comp does not address such as:
- Unpredictable work environments – rough seas and extreme weather conditions
- Heavy machinery hazards – operating cranes, winches, and cargo-handling equipment increases injury risks
- Remote locations – limited access to immediate medical care
- Long working hours – fatigue-related accidents and injuries
According to the U.S. Bureau of Labor Statistics, the fatality rate for maritime workers is four times higher than the average across all U.S. industries.
When is Maritime Employers Liability Insurance Necessary?
You need MEL insurance if your business:
- Employs workers on navigable waters (rivers, seas, offshore platforms).
- Has employees working aboard vessels you do not own (leased or contracted).
- Uses temporary or subcontracted maritime labor.
- Operates in an industry like commercial fishing, offshore drilling, shipping, or marine construction.
Some businesses mistake general liability insurance as the proper choice to cover these risks, however, it does not. Without MEL, businesses may be liable for lawsuits, medical expenses, and wage claims from injured maritime employees.
What’s the Difference Between Maritime Employers Liability and Worker’s Comp?
While both MEL and workers’ comp provide coverage for workplace injuries, they apply to different types of employees and legal requirements.
Workers’ Compensation
- Covers land-based employees under state laws.
- Provides medical expenses, lost wages, and rehabilitation costs for job-related injuries.
- Protects employers from lawsuits by injured workers.
Maritime Employers Liability
- Covers maritime employees working on or near the water.
- Follows federal maritime laws like the Jones Act and Longshore and Harbor Workers’ Compensation Act.
- Protects employers from crew member injury lawsuits, including negligence claims.
Key Difference: Workers’ Comp excludes maritime employees because they fall under federal law and not state regulations. Businesses with maritime workers need MEL to fill this gap and ensure proper comprehensive coverage.
How Can You Protect Your Maritime Workforce with Biscayne Risk & Insurance Group?
At Biscayne Risk & Insurance Group, we specialize in marine risk management for businesses operating in Fort Lauderdale, West Palm Beach, and surrounding areas.
Our policies include Maritime Employers Liability, Workers’ Compensation & USL&H, Protection & Indemnity, Hull & Machinery, General Liability, Bumbershoot Insurance, Pollution Liability, and Ocean Cargo Insurance.
We have a team of experts who are ready to help you assess your business risks, recommend customized policies, and ensure compliance with maritime laws.
Please contact us to learn more about our comprehensive coverage options. We look forward to working with you!