Why MEL Insurance Is Important for Marine Industries
A majority of businesses procure insurance in the form of workers’ comp to protect employees from risks associated with workplace hazards. For the marine industry, workers’ compensation insurance is no less important; however, it is not sufficient for many of the unique risks attributed to maritime jobs. Maritime Employers Liability Insurance (MEL) is designed to address the gaps in workers’ comp coverage for companies that operate on water, though it is a liability policy and not a compensatory benefit.
Protection for Employees Aboard Non-Company Vessels
As an employer in the maritime industry, you have a legal obligation to insure your employees when they are aboard a non-company vessel, regardless of the size or type of vessel. When your employees perform jobs on a vessel owned by another company, you must carry liability insurance to protect your workers and your company from job-related risks.
Protection for Non-Employees Aboard Company Vessels
A second critical area covered under MEL insurance is for non-employees who are working aboard a company vessel on a temporary basis. While these individuals might be covered under workers’ compensation policies with their own employers, MEL insurance protects your business from accidents, injuries and property damage that occur on a vessel you own.
As experts indicate, maritime workers’ compensation insurance provides the marine industry with required liability protections not covered under a general worker’s compensation policy. Both types of coverages are necessary to protect your business, your workers and your vessels.