We routinely receive questions from our seafood clients regarding workers compensation. This coverage can be a bit confusing when applied to employees that work on the water. Below are some of the most common questions along with answers we hope you will find enlightening. Please don’t hesitate to contact us or your agent with questions, or visit any of the following links for more detail:
Q: Who is considered my employee?
A: Someone is considered an employee if 1) you pay them (in any fashion), and 2) you tell them what to do, and 3) you provide them the tools/means to do their job, and 4) you have the right to fire them. This is a rule of thumb, so contact your agent or state workers compensation commission for specifics.
Q: Do I need workers compensation for my temporary employees?
A: Many states require protection upon hiring your first employee. In Virginia, three or more is the trigger, though employees are entitled to workers compensation benefits regardless of whether the company has coverage or not. Ask your agent regarding your specific state’s requirements. Temporary employees are considered employees.
Related: Subcontractors and Workers Compensation
Q: Does workers compensation cover my workers while on the water?
A: As long as they are not a Jones Act Seaman, generally yes. Although, most workers compensation carriers assert that any worker with an on-water injury is a Jones Act Seaman. But the law isn’t nearly that clearly delineated. We have had standard workers compensation carriers pay for prop strikes and stingray barb injuries to feet and ankles of watermen tending clam beds.
Related: Workers Compensation and Jones Act Whitepaper
Q: My insurance agent says I have a special code on my workers compensation policy that also covers the Jones Act. What is that about?
A: Workers compensation policies can be structured to offer limited amounts of Jones Act coverage. However, rates for these codes are typically so high it is simply more advantageous to purchase standard Jones Act coverage. There are also limitations associated with how the workers compensation policy will settle such claims.
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