WC & EL / PART ONE / RULE XII:

Masters and members of the crews of vessels are not covered under state workers’ compensation laws or under the USL & HW Act. They are subject to admiralty law and, if injured, have the right to sue their employers for damages in the Admiralty Courts where the proceeding is in the nature of an employers’ liability suit.  They also have the right to transportation, wages, maintenance and cure.

Such seamen are subject to a Federal law, the Merchant Marine Act of 1920, known as the Jones Act (46 U.S. Code, Section 30101 et seq.), which applies the provisions of the Federal Employers’ Liability Act to seamen.

Every person employed on board a vessel is deemed to be a seaman if connected with the operation or welfare of the vessel while in navigable waters.

Navigable waters are defined as those which form a continuous highway for interstate or international commerce.

The Standard Policy may be used to provide insurance for liability under one or more state workers’ compensation laws and for liability under admiralty law.  There are two programs to furnish such insurance:

1. Program I

   This program provides coverage for statutory liability under the workers’ compensation law of any state designated in Item 3. of the Information Page, and employers’ liability for damages under admiralty law subject to a standard limit of $100,000.

2. Program II

   This program provides the same coverage as Program I, but with the addition of Voluntary Compensation.  The insurance carrier will offer a settlement of a claim strictly in accordance with statutory benefits provided in the workers’ compensation law designated in the voluntary compensation endorsement, which is attached to the policy as if the claim were subject to such law instead of subject to the laws of negligence.  If the offer of settlement is rejected, employers’ liability then applies to such claim or suit, with the same standard limit as for Program I.

1. Admiralty Law

   To provide Program I for admiralty law, attach the “Maritime Coverage Endorsement” (WC 00 02 01 B).

   To provide Program II for admiralty law, also attach the “Voluntary Compensation Maritime Coverage Endorsement” (WC 00 02 03).

2. USL & HW Act

   When insurance is provided for liability under admiralty law, insurance for liability under the USL & HW Act may be necessary.

   To provide such insurance, attach the “Longshore and Harbor Workers’ Compensation Act Coverage Endorsement” (WC 00 01 06 A).

1. Standard Limit

   The standard limit of liability under Part Two – Employers’ Liability Insurance for Admiralty Program I or II is $100,000.

   1. Accident Limit

      The limit of liability applies to all bodily injury arising out of any one accident.

   2. Disease Limit

      The limit of liability also applies as a separate aggregate limit for all bodily injury by disease.  The aggregate limit applies separately to bodily injury by disease arising out of work in each state shown in Item 3.A. of the Information Page.

   3. Show Limits on Endorsement

      The limits of liability must be stated in the “Maritime Coverage Endorsement” (WC 00 02 01 B).

2. Increased Limits

   Increased limits of liability under Part Two – Employers’ Liability Insurance are available. The total premium, including increased limits, shall be determined by applying the factor in the following Table for Increased Limits to the total premium for admiralty classifications under Programs I and II before application of:

   1. Carrier expense constant
   2. Experience rating modification
   3. Carrier premium discount
   4. Retrospective rating adjustment

   The premium for increased limits is subject to an experience rating modification.

Refer to the Employers’ Liability Insurance for Admiralty or FELA Table for Increased Limits of this Rule for limits higher than $500,000.

1. Minimum Premium

   The separate minimum premium shown in the above Table for Increased Limits applies to policies which include classifications for operations subject to admiralty law.  Such minimum premium is the lowest premium for insuring admiralty operations, and it shall apply in addition to the carrier minimum premium or premium for other operations on such policies. It is not subject to an experience rating modification.

The classifications for Admiralty operations follow.  The loss cost for each classification is shown in Part Three – Loss Costs of this Manual.