Maritime Employer's Liability | (MEL)

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Maritime Employer's Liability (MEL)

Overview - Under federal law (The Jones Act), masters and members of the crew are not restricted to statutory compensation acts (State Workers' Compensation) and may sue their employers for injuries sustained in the course of employment.

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Please see complete information on Jones Act and USL&H here.

Typical Insureds - Vessel owners who do not cover crew under their P&I policy with a Jones Act endorsement.

What It Covers - The typical MEL policy covers:

Employer's potential liability under the Jones Act in excess of a deduction or retention. A $25,000 sub-limit is generally available from an insured's Worker's Compensation carrier. MEL policies are usually attached as excess of this amount

Underwriting Considerations:

Nature, location and duration of work being performed
Receipts, payroll and payroll estimates for USL&H and Jones Act exposures
Average and maximum number of employees exposed at any one time
Claims history

Tip:

Some P&I carriers limit Jones Act coverage to specified crew. This intent is to limit coverage to employees performing traditional crew functions furthering the mission of the vessel; and to exclude coverage for contracting personnel working from vessels. If this is the case, owners should consider MEL coverage.