Many maritime businesses operate outside of jurisdictions that require traditional workers compensation insurance. As a result, those businesses have more options for covering employment liability than their counterparts on dry land. In some cases, this business model also eliminates options, because some insurers who offer employment insurance packages in coastal states only offer them when your business stays within the state’s borders. By contrast, maritime liability coverage is designed to protect your workers wherever they are when they get hurt, even if it in the middle of international waters.
What Does Employment Liability Insurance Cover?
This form of liability insurance generally covers the same risks as workers compensation, with one big difference. State run workers compensation programs have to absorb the full costs of accident related expenses when you bear liability as the employer. Employment liability insurance only covers you up to a policy maximum, so managing your risk effectively means figuring out how much insurance to buy. You don’t want to overpay, but if you under-insure your company there is a chance a big claim could put you out of business. When you’re trying to figure out how to balance those risks, it helps to talk to maritime insurance providers with a long history of providing coverage to businesses just like yours. Their recommendations can give you a lot of perspective on the issue.