A Primer
Many of our clients in various seafood businesses are curious, confused, and/or concerned about the Jones Act and how it affects insurance. In as brief a fashion as possible, let’s lay a foundation:
- Jones Act is a federal act, as opposed to workers’ compensation which is under the prevue of individual states.
- If you employ a Jones Act seaman, they are protected by the Jones Act. Coverage available under workers’ compensation for them is minimal at best. Jones Act insurance is needed.
- Definition of a Jones Act seaman is generally someone who 1) works on a boat or fleet of boats approximately 30% of the time, 2) on commercially navigable water (tidal water included), and 3) contributes to the vessel’s function.
If you employ any Jones Act seaman, you need Jones Act coverage. That is obtained through a Protection and Indemnity policy (P&I) that includes the crew.
Think of P&I like car insurance for a boat, but adding crew coverage. On a yearly basis, prices generally run $600 per boat for $1,000,000 liability coverage, plus 2% of insured value for the hull, plus $1,200 per crewmember for $1,000,000 Jones Act coverage. Crew are considered roving, meaning they are interchangeable and not named.
With that foundation, I invite you to visit our seafood industry webpage where you can request a quote for P&I including crew (Jones Act), general liability, property, docks/piers/bulkheads, business auto/truck, and many others. Be sure to view our Workers’ Compensation and Jones Act white paper.
Keep us in mind for your business insurance needs. We’ve insured the seafood industry since 1947 and are licensed in most coastal states – 28 in all.
Call us at (877) 606-1375 with any questions. Thank you.
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