Thursday, April 19, 2007

Ship operator loses Jones Act challenge

Thanks to Dave Delano from VAAA San Francisco for bringing this item to our attention: (from

Seaman’s Work Extends Beyond Insurance Coverage

The US Court of Appeals for the Ninth Circuit ruled that the marine coverage endorsement on the business insurance purchased by a ship operator did not provide coverage for the on-shore work being performed by a seaman when he was injured. Thus, while the ship operator was liable, under the Jones Act, to the seaman for his injuries, it was unable to recoup those monies from the business insurance company, since the policy only covered work performed on the ship. Source: HK Law

I know a few towing companies who are not carrying separate workers comp insurance. This could have large repercussions in our industry....stay tuned.