MEL Coverage: What Incidents Are Actually Covered?

Maritime employers liability insurance protects employers against claims from employees who suffer injuries or illnesses related to their work at sea. This coverage addresses risks faced by maritime workers, providing financial support and legal protection. 

In this article, we clarify the types of incidents covered under maritime employers liability (MEL) policies, helping agents offer accurate and informed advice to maritime businesses.

What Does Maritime Employer Liability Cover?

Understanding the scope of MEL insurance is essential for grasping the full extent of protection it offers. 

Coverage Under the Longshore and Harbor Workers’ Compensation Act (LHWCA)

Under the Longshore and Harbor Workers’ Compensation Act (LHWCA), coverage includes specific types of maritime employment incidents such as injuries sustained while loading or unloading cargo. It also covers accidents occurring during repairs or maintenance on vessels.

The LHWCA operates alongside other types of maritime insurance by focusing on workers’ compensation for longshoremen and harbor workers. While general maritime insurance covers a broader range of risks, the LHWCA addresses workers’ compensation claims related to maritime employment.

Coverage Under the Jones Act

The Jones Act allows seafaring employees to file claims for damages if they are injured due to their employer’s negligence. This protection applies to individuals working on vessels engaged in navigation or commerce.

The Jones Act is integral to MEL policies, as it directly influences the scope of coverage for maritime employers. It impacts liability coverage by enabling seafaring employees to claim damages for injuries caused by employer negligence.

Coverage Under the Death on the High Seas Act (DOHSA)

Death on the High Seas Act (DOHSA) coverage is an important component of MEL policies, compensating for fatal incidents occurring on international waters. This coverage provides financial support to the families of deceased maritime workers, particularly outside U.S. territorial waters.

When advising clients about claiming under the DOHSA, agents should emphasize the importance of thorough documentation and understanding eligibility requirements. Agents should also guide clients through the claims process, enabling them to meet all deadlines and provide detailed evidence to support their claims.

Coverage Under the General Maritime Law of the United States

General Maritime Law coverage complements MEL insurance by addressing claims related to vessel unseaworthiness and employer negligence, which are not always covered under standard MEL policies. 

Agents should understand that maritime tort claims under General Maritime Law can address issues such as negligence and unseaworthiness, which may not be fully covered by MEL policies. Navigating these claims requires a clear grasp of legal principles and how they impact liability and compensation.

Coverage Under Maintenance, Cure, and Wages

“Maintenance and cure” obligations refer to the employer’s duty to cover an injured seafarer’s medical expenses and living costs until they reach maximum medical improvement. Within the context of MEL insurance, this means that employers’ policies must address these costs. 

Integrating unearned wages into MEL policies compensates injured workers for lost income. Agents should guide employers in selecting appropriate policies and managing claims.

Importance of Understanding Maritime Employers Liability

Detailed knowledge of maritime employers liability insurance is essential for offering robust client support. Understanding maritime employers liability helps agents address clients’ needs and navigate complex coverage scenarios.

Agents should leverage this information to keep their maritime clients compliant and protected. For tailored advice and coverage solutions, reach out to Merrimac Marine Insurance for a quote.

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.