Employees that work on vessels and marine environments are exposed to risks that aren’t found in other types of workplaces. Having insurance that covers general liability, workers compensation and property damage is a solid approach for most businesses, but they don’t usually cover your workers and their operations on ships and other watercraft. A marine employer’s liability (MEL) policy is specifically designed to cover loss of life and injuries to seafaring employees. It’s a type of maritime insurance that is strongly recommended for maritime operations.
What Does MEL Insurance Cover?
MEL insurance is specifically designed to protect your interests regarding employees that perform work on a vessel:
- Construction and reconstruction
- Drilling and subsurface operations
- Scientific Research
- Seismic investigation
- Subcontractor operations
General liability and workers compensation policies may not be sufficient enough to cover costs associated with claims due to injury or illness.
Do I Really Need This Type of Insurance?
MEL coverage is not currently required by state or federal law. You have to carefully consider the type of work your company does and look at your existing policies. The usual insurance may not adequately address your business. Moreover, it’s better to have MEL coverage and never have to make a claim than vice versa. You’ve put too much into your company for it to be taken out due to an accident involving employees. Even if your workers are injured on another company’s vessel, they’re still covered under an MEL policy.