tag:blogger.com,1999:blog-14037662224533863832024-02-27T14:44:28.301-05:00LIG Marine BlogNews & Views on Commerical Marine & Longshore InsuranceIan Greenwayhttp://www.blogger.com/profile/02402092544073123497noreply@blogger.comBlogger102125tag:blogger.com,1999:blog-1403766222453386383.post-71768982970045019962024-02-27T14:43:00.001-05:002024-02-27T14:43:52.511-05:00Keep your choice-of-law clauses – Supreme Court comes back with unanimous decision on: Great Lakes Insurance SE v Raiders Retreat Realty Co., LLC<h2 style="text-align: left;"><b><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpav7a348ZMdIqHSzMty-FJ603jf6Hh-UeG4KhWR8OqPuk_AXYy_duC9p1p6F2WO59Igs4-iB1KjD1omuX2oYdOFLwTHw0QusUSuKFM_mXNv3ftUxJtCXbzKsFiNBudsUsbNJWbRZ7hS6TktTdqPd_0ZPwUK3IQd1ycZ-V-Gpbhw9PwZqWcW7UXCtLENw/s1840/grey-marble-column-details-building.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1228" data-original-width="1840" height="214" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpav7a348ZMdIqHSzMty-FJ603jf6Hh-UeG4KhWR8OqPuk_AXYy_duC9p1p6F2WO59Igs4-iB1KjD1omuX2oYdOFLwTHw0QusUSuKFM_mXNv3ftUxJtCXbzKsFiNBudsUsbNJWbRZ7hS6TktTdqPd_0ZPwUK3IQd1ycZ-V-Gpbhw9PwZqWcW7UXCtLENw/s320/grey-marble-column-details-building.jpg" width="320" /></a></div><br />Background of the Case</b></h2><p>The dispute arose from a maritime insurance contract between Raiders Retreat Realty, a Pennsylvania-based company, and Great Lakes Insurance, headquartered in the United Kingdom. The insurance policy, which covered a boat owned by Raiders that later ran aground, included a choice-of-law provision designating New York law for any future disputes. When a claim was denied by Great Lakes, citing a breach of contract by Raiders, a legal battle ensued over which state's law should apply; Pennsylvania, where the lawsuit was filed, or New York, as specified in the contract.</p><p><b><br /></b></p><h2 style="text-align: left;"><b>The Ruling</b></h2><p>The opinion of the Court underscored the primacy of federal maritime law in governing such disputes. The ruling unequivocally supports the presumption that choice-of-law provisions in maritime contracts are enforceable, offering clarity and predictability for parties involved in maritime commerce. This decision emphasizes the importance of respecting contractual agreements regarding jurisdictional law, thereby reinforcing the sanctity of contract law in maritime disputes.</p><p><br /></p><h2 style="text-align: left;"><b>Insurance Implications</b></h2><p>As vessels tend to move about, the idea of determining appropriate jurisdictions would be difficult and costly in some cases. Allowing the clause to stand is going to remove a potential topic of debate when tough claims come in.</p><p>As of recent, we have found a general movement in the marketplace to a neutral choice-of-law state as opposed to variation as the home state of the insured. This is likely to continue, and with insurers paying more attention to the topic, it might be an area of negotiation going forward. Those negotiations would necessarily include at least considering the potential for which if any of the exceptions would apply to any decision made.</p><p> </p><h2 style="text-align: left;"><b>Narrow Exceptions to the Rule</b></h2><h4 style="text-align: left;">1. Contravention of a Controlling Federal Statute <br /><span style="font-weight: normal;">(see Knott v. Botany Mills, 179 U.S. 69, 77 (1900))</span></h4><p>If applying the law chosen by the parties would contravene a controlling federal statute, the choice-of-law provision cannot be enforced. This means that even if a contract selects a particular jurisdiction's law, that choice cannot lead to outcomes explicitly forbidden by federal law.</p><h4 style="text-align: left;">2. Conflict with Established Federal Maritime Policy <br /><span style="font-weight: normal;">(see The Kensington, 183 U.S. 263, 269–271 (1902))</span></h4><p>The choice of law must also not conflict with established federal maritime policies. Federal maritime law aims to provide (and sometimes actually provides) uniformity and predictability across the nation's navigable waters. If enforcing a choice-of-law provision would undermine these fundamental goals—such as exempting a party from liability for negligence in a manner that federal maritime law prohibits—then the provision may not be enforceable. This exception aligns with the judiciary's role in maintaining a coherent and consistent maritime legal framework supporting national and international interests in maritime commerce. </p><h4 style="text-align: left;">3. Absence of a Reasonable Basis for the Chosen Law <br /><span style="font-weight: normal;">(see Cf. Carnival Cruise, 499 U. S., at 594–595; The Bremen, 407 U. S., at 10, 16–17.)</span></h4><p>This exception is designed to prevent the arbitrary selection of a legal jurisdiction with no substantive connection to the parties or the contract. The rationale behind this exception is to ensure fairness and to avoid situations where the choice of law would significantly disadvantage one party over another without a legitimate reason. While the Court emphasizes deference to the parties' agreement, selecting a jurisdiction's law purely for its perceived advantages, without any rational connection to the dispute, could lead to unenforceability.</p><p> </p><p><i>This post aims to provide a comprehensive overview of the Supreme Court's decision and its implications for the insurance industry. As always, parties involved in maritime contracts should consult with legal experts to fully understand how this ruling may impact their operations and legal strategies.</i></p>Treehouse Marketinghttp://www.blogger.com/profile/10845663168988556086noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-20915177858305073232023-11-17T11:10:00.005-05:002023-11-21T11:06:28.806-05:00LHWCA Carriers' Right to Offset Despite Subrogation Waiver<p>The United States District Court for the Eastern District of Louisiana delivered an intriguing ruling in the matter of Aries Marine Corp. The decision by Judge Lance Africk focused on the complex intersection of subrogation and offset rights within the framework of the Longshore and Harbor Workers' Compensation Act (LHWCA). </p><p>The court's verdict stipulated that a waiver of subrogation by an LHWCA carrier does not negate the carrier's right to claim an offset against future LHWCA liability. This legal intricacy arose from an accident involving a lift boat off the coast of Louisiana in the Gulf of Mexico.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjIUwGZeenlCutLmSuZJ4fajGNMp2_dKqsJmnWdG7cFStbRXi6uNu8zzVwbEdlcNYKhATfDRUPMMfOW6Q5hGpCC3NIocSUgJ08B3T9k9T2vIoNEwoxzC2xUOx4vnydc5fycbEkOB7W-nLA8viTtqDNjyLStSOniJN01nQwB6HR_ck_QlNJHrPL8qg-RekI/s1824/court-hammer-books-judgment-law-concept.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1546" data-original-width="1824" height="271" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjIUwGZeenlCutLmSuZJ4fajGNMp2_dKqsJmnWdG7cFStbRXi6uNu8zzVwbEdlcNYKhATfDRUPMMfOW6Q5hGpCC3NIocSUgJ08B3T9k9T2vIoNEwoxzC2xUOx4vnydc5fycbEkOB7W-nLA8viTtqDNjyLStSOniJN01nQwB6HR_ck_QlNJHrPL8qg-RekI/s320/court-hammer-books-judgment-law-concept.jpg" width="320" /></a></div><p>Workers injured when the lift boat capsized received compensation under the LHWCA, and the carriers then sought subrogation claims to recover the benefits paid from the defendants. However, the defendants and plaintiffs contested this by invoking the waiver of subrogation clause in their contract.</p><p>Judge Africk delved into the complex nuances of the contract, ultimately concluding that the waiver applied to the owner of the rig and its "invitees." Here, the court applied Louisiana law, defining invitees as individuals who enter premises with the express or implied invitation of the occupant, usually for mutual benefit.</p><p>The carriers subsequently filed motions for reconsideration, and the court recognized that a dismissal of their claim for an offset would be a "legal error." As a result, Judge Africk amended the summary judgment to acknowledge the carriers' right to claim an offset pursuant to Section 33(f). </p><p>This ruling underscores the importance of understanding the nuanced aspects of legal provisions, even in cases where subrogation is waived, and reaffirms that carriers can still seek an offset against future LHWCA liability, ensuring a balance of rights in complex maritime compensation cases.</p><p><br /></p><div style="text-align: left;"><span style="color: #3333cc; font-family: "brush script mt"; font-size: xx-large;">Ian Greenway</span></div><p></p>Treehouse Marketinghttp://www.blogger.com/profile/10845663168988556086noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-45155241247634323752023-09-27T17:13:00.000-04:002023-09-27T17:13:06.178-04:00 OWCP Proposes Changes to Longshore Act Civil Penalties Procedures<p>The U.S. Department of Labor has proposed changes to the regulatory framework governing penalties assessed against employers and insurance providers for non-compliance with reporting obligations under the Longshore & Harbor Workers’ Compensation Act.</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhB2eNQ5NFfO8TY5fyPlhsENQwIFMfsMbbNUrYYAZ1m46KATbTjZQcZntBvl_6ubrCWh6m2rWt27iaHRIjZAh4F-eWn-Va5AVsjoYbbmEEXQhscVg1aMTwBofvXW9dpVyEJpLjfVtxOrQz-tvj4HvOb_2fryKDR_MQ9ijLFOeKuVrJccPLmFFoohX14lf8/s3750/man-with-helmet-near-containers-board-generative-ai.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2102" data-original-width="3750" height="179" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhB2eNQ5NFfO8TY5fyPlhsENQwIFMfsMbbNUrYYAZ1m46KATbTjZQcZntBvl_6ubrCWh6m2rWt27iaHRIjZAh4F-eWn-Va5AVsjoYbbmEEXQhscVg1aMTwBofvXW9dpVyEJpLjfVtxOrQz-tvj4HvOb_2fryKDR_MQ9ijLFOeKuVrJccPLmFFoohX14lf8/s320/man-with-helmet-near-containers-board-generative-ai.jpg" width="320" /></a></div>Under the Longshore & Harbor Workers’ Compensation Act (LHWCA), compensation, medical care, and vocational rehabilitation services are provided to employees incapacitated by job-related injuries on U.S. navigable waters or adjacent areas typically used for ship-related activities. The LHWCA also stipulates survivor benefits for dependents in cases where a work-related injury leads to an employee's death.<p></p><p>The LHWCA allows the Office of Workers’ Compensation Programs (OWCP) to impose civil penalties against employers failing to report workplace injuries or deaths promptly and accurately.</p><p>In an effort to bring more transparency to the process, the <a href="https://www.federalregister.gov/documents/2023/09/12/2023-19422/longshore-and-harbor-workers-compensation-act-civil-money-penalties-procedures" rel="nofollow" target="_blank">proposed modifications unveiled by OWCP on September 11, 2023</a>, would alter the practice of assessing and imposing civil penalties. </p><p>By implementing a system of graduated penalties based on violation history, increasing measures for clarification throughout the assessment process, and expanding opportunities for employer appeals, the OWCP aims to promote accountability and ensure fairness in the process. </p><p>OWCP is accepting written comments regarding the proposed rulemaking through November 13, 2023. You may submit written comments, identified by RIN number 1240–AA17, via the <a href="https://www.regulations.gov" rel="nofollow" target="_blank">Federal eRulemaking Portal</a><i>.</i></p><br /><div><i style="background-color: white; color: #333333; font-family: verdana, sans-serif; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: x-large;">Ian Greenway</span></i></div>Treehouse Marketinghttp://www.blogger.com/profile/10845663168988556086noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-45615969900157823342023-08-07T16:06:00.003-04:002023-11-07T14:59:51.101-05:00Congress Amends Limitation of Liability Act to Protect Passengers on “Small Passenger Vessels”<p><b>Congress has amended the Limitation of Liability Act to remove “Small Passenger Vessels” from its protection. </b>The amendment, passed as part of the National Defense Authorization Act for Fiscal Year 2023, will make it more difficult for vessel owners to limit their liability in accidents that cause death or injuries.</p><p>The Limitation of Liability Act was enacted in 1851 to protect shipowners from financial ruin in a maritime accident. The law allows shipowners to limit their liability to the value of the vessel and its cargo. However, the amendment to the law now excludes “Small Passenger Vessels”.</p><p>The amendment was prompted by the 2019 Conception fire, which killed 34 people. The Conception was a small passenger vessel that caught fire while anchored off the coast of California. The fire quickly spread, and many passengers were trapped below deck. The owners of the Conception were able to limit their liability under the Limitation of Liability Act, even though they were found to be negligent.</p><p>A “Small Passenger Vessel” in the United States, is defined as a vessel that is less than 100 gross tons and carries more than six passengers for hire but fewer than 150 passengers or fewer than 49 passengers overnight. This includes vessels that are chartered with the crew provided or specified by the owner or the owner's representative and vessels that are chartered with no crew provided or specified by the owner or the owner's representative. <br /><br />Examples include:</p><p></p><ul style="text-align: left;"><li>Ferryboats</li><li>Sightseeing boats<br /></li><li>Dinner cruises</li><li>Charter boats</li><li>Fishing boats</li><li>Water taxis</li></ul><br /><div><div class="separator" style="clear: both; text-align: left;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjb6HZzdbnk9eq8vWrFS6FYNjcbOmHPjfrS67Tm7y6VXCUo1lBJY1T5U3AbiH9Ca5ayFNVLhem9lHzuoYvNNT8H6HX2ikzkobzH822djzGk5xBFvfTetL_iRIcCD14_gy3Y6nOGXd0T3Zg76-EjrpAMZ6SQXXGUdw_qM1lUn0A3QOew9WgIdGM_tCa7u0U/s4472/water-taxi-sign-venice.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="3354" data-original-width="4472" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjb6HZzdbnk9eq8vWrFS6FYNjcbOmHPjfrS67Tm7y6VXCUo1lBJY1T5U3AbiH9Ca5ayFNVLhem9lHzuoYvNNT8H6HX2ikzkobzH822djzGk5xBFvfTetL_iRIcCD14_gy3Y6nOGXd0T3Zg76-EjrpAMZ6SQXXGUdw_qM1lUn0A3QOew9WgIdGM_tCa7u0U/w400-h300/water-taxi-sign-venice.jpg" width="400" /></a></div><br /></div><p></p><p><b> What does this mean for passengers?</b></p><p>Previously, the law potentially allowed vessel owners to limit their liability to the value of the vessel and its cargo, even if they were found to be negligent. With “small passenger vessels” removed, the Limitation of Liability Act amendment means that passengers on such vessels will now have a better chance of recovering damages if they are injured or killed in an accident. </p><p><br /></p><p><b>Review the law and amendment</b></p><p></p><ul style="text-align: left;"><li><a href=" https://uscode.house.gov/statviewer.htm?volume=136&page=4130" rel="nofollow" target="_blank">Revision to the law</a></li><li>Full law: <a href="https://uscode.house.gov/view.xhtml?path=/prelim@title46/subtitle3/chapter305&edition=prelim " rel="nofollow" target="_blank">Chapter 305—Exoneration and Limitation of Liability</a></li></ul><div><br /></div><div><i style="background-color: white; color: #333333; font-family: verdana, sans-serif; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: x-large;">Ian Greenway</span></i></div><p></p>Treehouse Marketinghttp://www.blogger.com/profile/10845663168988556086noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-24666454917167756022023-07-26T11:59:00.004-04:002023-08-21T17:02:25.390-04:00The largest changes to the Jones Act in years<p>Tucked away on page 1748 of the "James M. Inhofe National Defense Authorization Act for Fiscal Year 2023" were changes to the Jones Act—the most dramatic changes since 2008.</p><p>The changes introduce something the Jones Act has never had before: expressly excluded operations.</p><p>The predominant changes are as follows:</p><p>New Definition: <br />The law introduces the term "aquaculture worker."</p><p>Exclusion from Seaman Category: <br />Aquaculture workers are excluded from being classified as "seamen" under subsection (a) if two conditions are met: (A) State workers' compensation is available to the individual, and (B) The individual was engaged in aquaculture activities at the time of injury in a place where they had lawful access.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5YWv43GR2Ya0vIbQEv3KBe4GAk_GyBgGWz9LN3fGgDbeKVGeV4pbP6YJQkhB9-bx5z_LVJqHlCiyfrF4wtbm9m2--b2ZmuJeFLTvXVYM1OjC1UdLcTDBU9qa3if9AKUbucYxTAyGG5nX8CkIX6Gb0zl6EWEp8wHUfO3okbQh0UtM1Fy-GX8j6Bidz1pE/s2736/growing-fish-open-sea-view-ponds-with-fish.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1824" data-original-width="2736" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5YWv43GR2Ya0vIbQEv3KBe4GAk_GyBgGWz9LN3fGgDbeKVGeV4pbP6YJQkhB9-bx5z_LVJqHlCiyfrF4wtbm9m2--b2ZmuJeFLTvXVYM1OjC1UdLcTDBU9qa3if9AKUbucYxTAyGG5nX8CkIX6Gb0zl6EWEp8wHUfO3okbQh0UtM1Fy-GX8j6Bidz1pE/s320/growing-fish-open-sea-view-ponds-with-fish.jpg" width="320" /></a></div><p>Looking at the reason these changes were made, the most vocal proponent of the changes we see is the East Coast Shellfish Growers Association (ECSGA). They point to the expense of Jones Act coverage and the non-standardized application of the perceived need.</p><p>Jones Act crew benefits cost the insured more than workers' compensation, with average Jones Act claims several times more expensive than the average similar State Act Claim. With the goals in mind, the changes will likely fit the bill.</p><p>However, the problems arise from the unintended consequences of these changes. The first is that the Jones Act defines aquaculture instead of relying on the Longshore Act's exact definition from the Code of Federal Regulations. The duplication rather than re-use means any case law in one is not immediately applicable to the other. Any changes to the code of Federal Regulations will also not be directly applied to the Jones Act.</p><p>The second significant change is to the newly defined subsection (a) of section 30104 of the U.S. Code. The subsection now starts with the clause "In General.—". This clause introduces more ambiguity as to who is a Jones Act Seaman. We have a specific named carve-out for Aquaculture Workers, but no limiting clause that states that it is the only carved-out operation.</p><p>In 2009 the changes to the Longshore Act that changed the jurisdiction for the repair of recreational vessels led directly to more attention on what was and was not a recreational vessel. We expect to see similar tests as to what is and is not included in these new changes. Would processing of shellfish count as aquaculture? What does "controlled" mean in cultivation? Most of the well-known Longshore case law about aquaculture is focused on fish canning, so we will see some new cases to follow.</p><p>As always, please get in touch with us if you have any questions, such as how best to cover these employers now that the laws are changing.</p><p style="--artdeco-reset-typography_getfontsize: 1.6rem; --artdeco-reset-typography_getlineheight: 1.5; border: var(--artdeco-reset-base-border-zero); box-sizing: border-box; color: var(--color-text); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-weight: var(--artdeco-reset-typography-font-weight-normal); line-height: 1.75; margin: 1.6rem 0px; padding: 0px; vertical-align: var(--artdeco-reset-base-vertical-align-baseline);"><i> - Author: Mark Greenway, President, LIG Marine Managers</i></p>Treehouse Marketinghttp://www.blogger.com/profile/10845663168988556086noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-17184544096184798892023-05-30T12:19:00.007-04:002023-05-30T12:52:49.622-04:00Avoid Gaps in Defense Base Act (DBA) by Identifying This Exposure<p style="text-align: left;">Defense Base Act (DBA) coverage is usually relatively easy to identify as it is a contractual requirement for Employees working on U.S. defense bases and other similar contracts overseas. It becomes a little trickier when the insured is a subcontractor, as you may need to contact the principal to determine the DBA requirements in the prime contract.<br /> <br />When interacting with the Jones Act or other Admiralty remedies, it becomes much more complex. For example, when an insured works on a U.S. Navy vessel (considered a defense base in its own right). If the Employee does enough work on the vessel to meet the "substantial connection to a vessel in navigation" requirement for Admiralty jurisdiction, they have a right to collect those Admiralty (Jones Act) benefits. <br /> <br />Taking this one step further, DBA excludes admiralty employees, so here is what happens:<br />· DBA Carrier denies coverage<br />· Employee sues and collects under admiralty</p><p style="text-align: left;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiKmL6CY0yJtQSOE9uAEma1kFexJFmAKxJl94UnsjkuurbO8cw9jJoxcGyC-SiQcArHPdsMvekcSdY43u1mZF1rYKQH_S3x-7j9HDv33hApDKV3AlDP7UySHdSOMHPoC7VjwZsMkHbUnPFceirShNEsvSk7D-QaKQnwwjOkQDJnV8fi3I0hYQTdvGvY/s6600/american-modern-warship-ocean.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="4000" data-original-width="6600" height="289" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiKmL6CY0yJtQSOE9uAEma1kFexJFmAKxJl94UnsjkuurbO8cw9jJoxcGyC-SiQcArHPdsMvekcSdY43u1mZF1rYKQH_S3x-7j9HDv33hApDKV3AlDP7UySHdSOMHPoC7VjwZsMkHbUnPFceirShNEsvSk7D-QaKQnwwjOkQDJnV8fi3I0hYQTdvGvY/w475-h289/american-modern-warship-ocean.jpg" width="475" /><br /></a><b>Here is the problem – it is so easy to assume that DBA supersedes all other coverages that most agents/brokers will not provide Maritime Employers Liability (MEL) coverage … leaving a massive gap and an E&O exposure for that agent/broker.</b></p><p style="text-align: left;"> <br />Even if the "substantial connection" test is not met, the Employee still has the right to sue under Admiralty law, and the DBA policy does not even provide defense cost coverage in this event!<br /> <br />I want to assure you that this is not some hypothetical situation. We have practical examples of claims where the DBA carriers have declined defense and indemnity under Admiralty law, and agents/brokers have had to respond under their E&O policy. Further, this does not need to be some vast Navy vessel, a carrier, or Destroyer, etc.; it could be as simple as an 18ft harbor patrol vessel!<br /> <br />It is rare to see this happen IF all the work is performed dockside. But, if your DBA employee ever does work on a military vessel in Navigation, you must offer MEL coverage, even if it is only to provide defense costs for the incidental exposure.<br /> <br /><b>An "incidental" MEL can cost as little as $3,500 and typically provides $1mil of defense coverage with a small deductible.</b></p><div style="text-align: left;"><br />If there is a "substantial connection", premiums typically start at $5,000 and above, but both pale significantly against six-figure defense costs, or worse, an actual verdict against your employer/client. Those prices can often be reduced when the MEL is packaged with other coverages.<br /> <br />Once you have that primary $1ml, including it in the excess program is usually straightforward.<br /> <br /><b>Don't get dragged into a false sense of security when the contract requires DBA but there is an identifiable MEL exposure.</b></div><p style="text-align: left;"> <i style="background-color: white; color: #333333; font-family: verdana, sans-serif; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: x-large;">Ian Greenway</span></i></p><div style="text-align: left;"><br /></div>Treehouse Marketinghttp://www.blogger.com/profile/10845663168988556086noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-38725600292661458902023-01-24T13:56:00.000-05:002023-01-24T13:56:46.088-05:00Drawbacks of AI-Driven Rating <p>AI in underwriting poses significant risks that could have disastrous effects for both consumers and the insurance companies that underwrite them. AI can be prone to inaccuracies if the algorithms fail to properly interpret data points or mistakenly identify risks in consumers. This can potentially lead to incorrect and unfair pricing decisions, resulting in the rejection of legitimate claims or in some cases, the acceptance of fraudulent applications. Additionally, if implemented poorly, AI systems can worsen existing biases, since algorithms can maintain and even amplify existing biases without proper oversight. Finally, AI can lack transparency in its decision-making processes, making it difficult to challenge decisions and uncover systemic flaws in an insurer's underwriting process.</p><p>Surprise! That opening paragraph about the risks of AI underwriting was, ironically, written by AI. It was generated using a GPT-3 AI via an API. You can get similar results using the ChatGPT bot over at <a href="http://openai.com" rel="nofollow" target="_blank">openai.com</a>. </p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7SF3XtpgIhP96fSBFTaDyAmdDqRaIACzGcZJsK6AUR8XtJVU83PX-7HEuocsKHzMEnHQqwjw4JidePOs0MMA1UT4fiO3RggmQBoE-m8zjCZTt5Bn82lm_xheXozUqR2Cnsof9MhL-dcFtMY7MkQotPw9EFzRZQKt0rNWtHV39EziNaImLT_5qc_hR/s2500/robot-hand-finger-ai-background-technology-graphics.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1667" data-original-width="2500" height="248" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7SF3XtpgIhP96fSBFTaDyAmdDqRaIACzGcZJsK6AUR8XtJVU83PX-7HEuocsKHzMEnHQqwjw4JidePOs0MMA1UT4fiO3RggmQBoE-m8zjCZTt5Bn82lm_xheXozUqR2Cnsof9MhL-dcFtMY7MkQotPw9EFzRZQKt0rNWtHV39EziNaImLT_5qc_hR/w373-h248/robot-hand-finger-ai-background-technology-graphics.jpg" width="373" /></a></div><br /><p></p><p>It misses some key points though. To understand the problems inherent to AI, it helps to understand how it works. The basic vastly oversimplified explanation is that AI is a black box that you feed inputs and then you get an output. How it determines that output is based on Machine Learning. To oversimplify Machine Learning, you take sample input and then tell the machine what the output should have been. Do this often enough and the machine will learn how to do it.</p><p>Hopefully, this has already tipped you off to some of the simple pitfalls of AI. It is only as good as the things it’s trained with, as exampled by the <a href="https://www.theguardian.com/technology/2016/mar/24/microsoft-scrambles-limit-pr-damage-over-abusive-ai-bot-tay" rel="nofollow" target="_blank">AI bot Tay on Twitter</a>, which had to be taken down hours after release due to the subject matter of its responses.</p><p>But some drawbacks are less obvious. AI makes different assumptions than humans do and sometimes they’re wrong. For example, <a href="https://www.technologyreview.com/2020/02/19/868188/hackers-can-trick-a-tesla-into-accelerating-by-50-miles-per-hour/" rel="nofollow" target="_blank">one set of researchers</a><span style="font-size: xx-small;"> </span>was able to make the AI in a car read 35 as 85 simply by using a piece of black tape to extend the middle arm of the 3. </p><p>Humans have an inherent bias. Sometimes an account gets declined because of how it’s presented and explained. Sometimes they are declined because of the timing in relation to a major news story. Humans are more likely to <a href="https://www.bps.org.uk/psychologist/weather-and-behaviour" rel="nofollow" target="_blank">buy newspaper subscriptions</a><span style="font-size: xx-small;"> </span>if the day is sunny which there’s no logical reason behind. The machine trying to analyze these could end up making the wrong determination as to why a risk would be good or bad. </p><p>So why do we care? Well, there already existing AI-based syndicates. Some are follow-only, meaning that a human has little to no interaction with it and the underwriting becomes solely a matter of how good the AI is. It’s not science fiction, the technology is here today and is likely already causing issues for insureds. </p><p style="--artdeco-reset-typography_getfontsize: 1.6rem; --artdeco-reset-typography_getlineheight: 1.5; background-color: white; border: var(--artdeco-reset-base-border-zero); box-sizing: border-box; color: rgba(0, 0, 0, 0.9); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-family: Helvetica, Arial, sans-serif; line-height: 1.75; margin: 1.6rem 0px; padding: 0px; vertical-align: var(--artdeco-reset-base-vertical-align-baseline); white-space: pre-wrap;"><span style="background: var(--artdeco-reset-base-background-transparent); border: var(--artdeco-reset-base-border-zero); box-sizing: border-box; margin: var(--artdeco-reset-base-margin-zero); outline: var(--artdeco-reset-base-outline-zero); padding: var(--artdeco-reset-base-padding-zero); vertical-align: var(--artdeco-reset-base-vertical-align-baseline);"><span style="font-size: x-small;"><b><i>Author: Mark Greenway, LIG Marine Managers</i></b></span></span></p><p><b>Sources:</b></p><p><a href="https://www.theguardian.com/technology/2016/mar/24/microsoft-scrambles-limit-pr-damage-over-abusive-ai-bot-tay" rel="nofollow" target="_blank">The Guardian</a></p><p><a href="https://www.technologyreview.com/2020/02/19/868188/hackers-can-trick-a-tesla-into-accelerating-by-50-miles-per-hour/" rel="nofollow" target="_blank">MIT Technology Review</a></p><p><a href="https://www.bps.org.uk/psychologist/weather-and-behaviour" rel="nofollow" target="_blank">The British Psychological Society</a></p>Treehouse Marketinghttp://www.blogger.com/profile/10845663168988556086noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-56967425583590648722023-01-19T12:28:00.000-05:002023-01-19T12:28:03.803-05:00F vs. U – Understanding Longshore Class Codes<p><b>In the world of Longshore, nothing ever seems to be as simple as it should be! So, why should class code suffixes be any different?</b></p><p>In the traditional sense, if you look in NCCI’s SCOPE manual, or Bureau States manuals, you will see that “true” Longshore class codes, i.e. 6872F, 6824F, 6006F, etc. will have an “F” suffix. It’s understood within the insurance industry that the “F” indicates “Federal” coverage. </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSMQNiduHKk2clDy2LniPgA9iiD9JUR2rmwW50HU0olyDnjKkj4aIfvIcgo1eMnJj_xg1G54M6FwQlGnC-oJWpBtoV9IlyDIDhQNI9P2uY404tLbN5m4y1Bxc9YZrgRxniOnE-XUSoQ-Fie7NBJ_WXjZN4bDmIB6O2tTb7_M3luML_tWRzea_Vltke/s5089/cargo-cargo-containers-containers-906982.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="3393" data-original-width="5089" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSMQNiduHKk2clDy2LniPgA9iiD9JUR2rmwW50HU0olyDnjKkj4aIfvIcgo1eMnJj_xg1G54M6FwQlGnC-oJWpBtoV9IlyDIDhQNI9P2uY404tLbN5m4y1Bxc9YZrgRxniOnE-XUSoQ-Fie7NBJ_WXjZN4bDmIB6O2tTb7_M3luML_tWRzea_Vltke/s320/cargo-cargo-containers-containers-906982.jpg" width="320" /></a></div><p>You will also see the “F” suffix attached to “true” Longshore class codes in the Advisory Loss Cost pages of NCCI’s Basic Manual. A footnote on these pages states “F Advisory loss cost provides for coverage under the United States Longshore and Harbor Workers Compensation Act and its extensions. Loss cost contains a provision for the USL&HW Assessment.”</p><p>Seems simple and straightforward enough, right? Well, what about the “U” that shows up on the rating pages of some carriers’ quotes or policies? </p><p>Some carriers will attach the “U” to a standard State Act class code, i.e. 3724U, 5403U, etc. to indicate that the Longshore factor has been applied to that class code. </p><p>It is understood within the industry that the “U” represents “USL&H”. However, not all carriers will apply the “U” suffix. Many will still use the “F” suffix on their quote/policy rating pages to reflect the application of the Longshore factor. </p><p>In either circumstance, the “F” or “U” suffix on your quote/policy indicates that coverage under the US Longshore and Harbor Workers Compensation Act has been applied.</p><p><b>Below is a list of the 15 countrywide true “F” classes along with the 7 State-specific true “F” classes:</b></p><p><b>6801F<br /></b>Boatbuilding--wood--NOC & drivers<br /><b>6824F</b><span style="white-space: pre;"> </span><br />Boatbuilding or repair & drivers<br /><b>6826F</b><span style="white-space: pre;"> </span><br />Marina & drivers--coverage under U.S. Act<br /><b>6843F</b><span style="white-space: pre;"> </span><br />Barge building--iron or steel--U.S. Act--& drivers<br /><b>6845F</b><span style="white-space: pre;"> </span><br />Shipbuilding--naval & drivers<br /><b>6872F</b><span style="white-space: pre;"> </span><br />Ship or repair conversion<br /><b>6874F</b><span style="white-space: pre;"> </span><br />Painting--ship hulls<br /><b>7309F</b><span style="white-space: pre;"> </span><br />Stevedoring NOC<br /><b>7313F</b><span style="white-space: pre;"> </span><br />Coal dock operation & stevedoring<br /><b>7317F</b><span style="white-space: pre;"> </span><br />Stevedoring--by hand or hand trucks exclusively<br /><b>7327F</b><span style="white-space: pre;"> </span><br />Stevedoring--containerized freight & drivers<br /><b>7350F</b><span style="white-space: pre;"> </span><br />Freight handling NOC--coverage under U.S. Act<br /><b>8709F</b><span style="white-space: pre;"> </span><br />Steamship line or agency--port employees--talliers, checking clerks and employees engaged in mending or repackaging of damaged containers--coverage under U.S. Act<br /><b>8726F</b><span style="font-weight: bold; white-space: pre;"> </span><b><br /></b>Steamship line or agency--port employees--superintendents, captains, engineers, stewards or their assistants, pay clerks<br /><b>9077F</b><span style="white-space: pre;"> </span><br />United States armed service risk</p><div class="separator" style="clear: both; text-align: left;"><div class="separator" style="clear: both;"><br /></div><div class="separator" style="clear: both;"><b>STATE-SPECIFIC CLASSES</b></div><div class="separator" style="clear: both;"><b>6006F</b><br />Marine pile driving, dock & seawall, jetty or breakwater, dike or </div><div class="separator" style="clear: both;">revetment construction--all operations to completion & drivers (FL)</div><div class="separator" style="clear: both;"><b>6825F</b><br />Shipbuilding--iron or steel & drivers--coverage under US Act (MO)</div><div class="separator" style="clear: both;"><b>6828F</b><br />Boatbuilding or repair--fiberglass only--& drivers--U.S. Act (FL)</div><div class="separator" style="clear: both;"><b>6829F</b><br />Oil rig building--mobile offshore jack--up type--& drivers (MS)</div><div class="separator" style="clear: both;"><b>6869F</b><br />Shipbreaking (OR)</div><div class="separator" style="clear: both;"><b>6873F</b><br />Diving--U.S. Act (LA, OR)</div><div class="separator" style="clear: both;"><b>8711F</b><br />Steamship line or agency--port employees--tallymen, checking clerks or employees engaged in mending or repacking of damaged containers (NJ)</div></div><p><br />We hope this provides some clarity on a topic that can be confusing to many.<br /><br /><b>The world of longshore can be complex, but the experts at LIG are here to help!</b></p><p style="--artdeco-reset-typography_getfontsize: 1.6rem; --artdeco-reset-typography_getlineheight: 1.5; border: var(--artdeco-reset-base-border-zero); box-sizing: border-box; color: var(--color-text); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-weight: var(--artdeco-reset-typography-font-weight-normal); line-height: 1.75; margin: 1.6rem 0px; padding: 0px; vertical-align: var(--artdeco-reset-base-vertical-align-baseline);"><i> - Author: Tommy Bridges, VP of Business Development, LIG Marine Managers</i></p><p style="--artdeco-reset-typography_getfontsize: 1.6rem; --artdeco-reset-typography_getlineheight: 1.5; border: var(--artdeco-reset-base-border-zero); box-sizing: border-box; color: var(--color-text); counter-reset: list-1 0 list-2 0 list-3 0 list-4 0 list-5 0 list-6 0 list-7 0 list-8 0 list-9 0; cursor: text; font-size: var(--font-size-large); font-weight: var(--artdeco-reset-typography-font-weight-normal); line-height: 1.75; margin: 1.6rem 0px; padding: 0px; vertical-align: var(--artdeco-reset-base-vertical-align-baseline);"><br style="background-color: white; box-sizing: border-box; color: rgba(0, 0, 0, 0.9); font-family: Helvetica, Arial, sans-serif; font-size: 20px; white-space: pre-wrap;" /></p>Treehouse Marketinghttp://www.blogger.com/profile/10845663168988556086noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-66756206440678613872022-12-08T10:00:00.005-05:002022-12-08T10:03:04.618-05:00 Longshore vs. USL&H vs. LHWCA, It’s All in a Name<p style="text-align: left;">Marine Insurance has a longstanding tendency to perpetuate confusing names for coverage. You’ve probably heard of Longshore, but are you familiar with USL&H and LHWCA? </p><p>Let’s clear up some of these misunderstandings.</p><p><b>The full name of the act establishing benefits for waterfront workers is “33 U.S. Code Chapter 18 - LONGSHORE AND HARBOR WORKERS’ COMPENSATION ACT.”</b></p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhAE-9ybwbD0q4ZgKhyLAiSfGg9XvAAVHHpx1pPJiA-dTS2EC5sN6Wh21FHchBb2pIopK-xCujoBOTEyklimGbxD4YfTcjdfO8HDqkfPTIXYq4wtGxVEW9jXHGJge-UjOYXBDKCF6PBkYKC7JSQ1r5v_gwHGazROdeujBAU6uEzEDGrjQhFFFlXIoHQ/s1200/Blog%20Inset_All%20in%20a%20name.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="644" data-original-width="1200" height="184" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhAE-9ybwbD0q4ZgKhyLAiSfGg9XvAAVHHpx1pPJiA-dTS2EC5sN6Wh21FHchBb2pIopK-xCujoBOTEyklimGbxD4YfTcjdfO8HDqkfPTIXYq4wtGxVEW9jXHGJge-UjOYXBDKCF6PBkYKC7JSQ1r5v_gwHGazROdeujBAU6uEzEDGrjQhFFFlXIoHQ/w342-h184/Blog%20Inset_All%20in%20a%20name.png" width="342" /></a></div><p></p><p>If you compare the coverage names and the title of the Act, you’ll see that these three names originate directly from this piece of legislation. Two are partial abbreviations, and the third is a broad single-word simplification.</p><p>But which term is the standard for the industry and why are they all used to say essentially the same thing?</p><p></p><ul style="text-align: left;"><li>The abbreviation “USL&H” is somewhat incomplete, as it ignores the WCA part.</li><li>The abbreviation “LHWCA” is more complete, but not descriptive.</li></ul><p></p><p>You’ll often see these abbreviations in written format, especially on ACORD or Carrier forms, as they are easier to include in a short-form question.</p><p>Meanwhile, “Longshore” is the broadest and most inclusive term and is much easier to say. Therefore, you may hear this term used more often when speaking about this coverage.</p><p>The good news is that everyone in this market segment understands all these terms interchangeably and will quote accordingly.</p><p>Now that’s the simple part … more complex is how and where Longshore applies. </p><p><b>If you need to know more about that, have a look first at <a href="https://www.ligmarine.com/WebinarsArchive/2022_07_12_Longshore_101" target="_blank"><span style="color: #0b5394;">Longshore 101</span></a> for a basic understanding and then our <a href="https://www.ligmarine.com/Webinars" target="_blank"><span style="color: #0b5394;">other webinars</span></a> for more details.</b></p><p>Keep an eye out for our upcoming blog post covering different types of Longshore rates and how they apply. </p><div><div style="clear: both; text-align: left;"><i style="background-color: white; color: #333333; font-family: verdana, sans-serif; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: x-large;">Ian Greenway</span></i></div></div>Treehouse Marketinghttp://www.blogger.com/profile/10845663168988556086noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-385274074413254662022-11-30T15:09:00.008-05:002022-12-05T18:12:08.018-05:00Good News for FL Marine Contractors in 2023<p></p><div class="separator" style="clear: both; text-align: center;"><div class="separator" style="clear: both; text-align: left;">As we come to the close of 2022, we’re experiencing noticeable increases in costs from both the consumer and business owner perspectives. </div><div class="separator" style="clear: both; text-align: center;"><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">From the private citizen’s perspective, whether it’s a trip to the grocery store, a restaurant, or retail shops, prices have been rising. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">From a business owner’s perspective, it seems all the costs of doing business continue to rise, including insurance, healthcare, real estate, benefits, and wages. </div></div></div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8qRjL57-2q-PPodVUR7VmtqYSt5wFdX5nU8xPDbducrbuRtccUtsv7b5sNassFscEvH5h7X17VCsP7mWOOTKpDyPD8A_2ejSDOcQPSiJH-JgY7IHoy4j-uXDYAAsAECyZZ4xZQ6sXHWoYk4VPpRpiImIuGfCJ1x1pmYShpESpWpDbdWXmjc_NuKpz/s1483/accountant-calculating-profit-with-financial-analysis-graphs.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="990" data-original-width="1483" height="214" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8qRjL57-2q-PPodVUR7VmtqYSt5wFdX5nU8xPDbducrbuRtccUtsv7b5sNassFscEvH5h7X17VCsP7mWOOTKpDyPD8A_2ejSDOcQPSiJH-JgY7IHoy4j-uXDYAAsAECyZZ4xZQ6sXHWoYk4VPpRpiImIuGfCJ1x1pmYShpESpWpDbdWXmjc_NuKpz/w320-h214/accountant-calculating-profit-with-financial-analysis-graphs.jpg" width="320" /></a></div><div class="separator" style="clear: both; text-align: center;"><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Generally, the highest cost for a business owner— from an insurance standpoint— is their Workers’ Compensation policy. The great news is that, in contrast to the pricing increases we’re seeing in other industries, the cost of Marine Contractor’s insurance has been steadily decreasing over the past few years. In fact, since 2019 the rate for class code 6006F has dropped 38%. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">We’re pleased to share that significant rate reductions will continue in 2023. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Effective January 1, the Florida Marine Contractors’ class code 6006F will drop 15% from $11.09 to $9.43.</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">And in Florida, the average rate reduction for all true US Longshore class codes is 14.9%. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">We think everyone can agree that lower costs are a great way to start off a new year. Contact the specialists at LIG for details about our comprehensive coverage options today! </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><i style="background-color: white; color: #333333; font-family: verdana, sans-serif; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: x-large;">Ian Greenway</span></i></div><div class="separator" style="clear: both; text-align: left;"><br /></div><span></span><span><a name='more'></a></span><div class="separator" style="clear: both; text-align: left;"><br />When your submission is ready, just email it to <b><a href="mailto:SUBMIT@LIGMarine.com">SUBMIT@LIGMarine.com</a></b> and one of our underwriters will be assigned to walk you through the process.</div></div><div class="separator" style="clear: both; text-align: center;"><div style="text-align: left;"><p>For questions or support, please email us at <b><a href="mailto:ASK@LIGMarine.com">ASK@LIGMarine.com</a></b>. </p></div><div style="text-align: left;"><br /></div></div><p style="clear: both; text-align: left;"><br /></p><p></p><p></p>Treehouse Marketinghttp://www.blogger.com/profile/10845663168988556086noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-82100856368162091662022-08-25T15:26:00.002-04:002022-08-25T15:30:31.006-04:00Nuclear Verdicts and The Rising Costs of Maritime Claims<p>Many of you are aware of the term Nuclear Verdicts, which refers to cases in which a plaintiff is awarded what is considered an excessive dollar amount. This trend of exceptionally high jury awards has significantly impacted virtually every industry in recent years. Marine is suffering more than most.</p><p>The escalation of both the frequency and severity of these claims is amazing over the last 2-3 years and seems to have no signs of abating.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhxA6RN7OT6Xw_7uHMcf7aT6qdFXbIO_qMJXIucEwxmUBAY7713GEy2kaCah1EiKZHmRz5rMZvAAEqBEOtnO0teoKOgGGz1E_na6GX4sZVtnjFsfyAjGSlkFRgW-iETW_4FKQBS6Tas7KMMyjf3F1DWQQzGi9Ycp8U8lhFmBIXqxP03b57BQ6tK_f8x/s2448/scales-justice-gavel-wooden-table-agreement-courtroom.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1632" data-original-width="2448" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhxA6RN7OT6Xw_7uHMcf7aT6qdFXbIO_qMJXIucEwxmUBAY7713GEy2kaCah1EiKZHmRz5rMZvAAEqBEOtnO0teoKOgGGz1E_na6GX4sZVtnjFsfyAjGSlkFRgW-iETW_4FKQBS6Tas7KMMyjf3F1DWQQzGi9Ycp8U8lhFmBIXqxP03b57BQ6tK_f8x/w400-h266/scales-justice-gavel-wooden-table-agreement-courtroom.jpg" width="400" /></a></div><p>The excess market has suffered more from these losses with the effective erosion of the lower layers and the higher limit claims. It’s difficult to see how the excess market can survive if these trends continue without significant price changes.</p><p>Here are a handful of examples of lawsuits that we’ve seen in the last few years in the Marine Industry where jury awards or settlements have been quite significant.</p><p>I am sure many of you have other examples. Please share in the comments or send them to <a href="mailto:ASK@LIGMarine.com">ASK@LIGMarine.com</a>, and we will include them in a future post.<br /><br /></p><div class="post-footer" style="-webkit-text-stroke-width: 0px; background-color: white; color: #999999; font: 400 10.14px / 1.4em "Trebuchet MS", Trebuchet, Arial, Verdana, sans-serif; letter-spacing: 0.1em; margin: 0.75em 0px; orphans: 2; text-align: left; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: uppercase; white-space: normal; widows: 2; word-spacing: 0px;"></div><p></p><div class="post-body entry-content" id="post-body-7228834742170756459" itemprop="description articleBody" style="-webkit-text-stroke-width: 0px; background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; line-height: 1.6em; margin: 0px 0px 0.75em; orphans: 2; text-align: left; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><p><span style="font-family: inherit;"><span class="s3" style="font-kerning: none; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"><i style="background-color: white; color: #333333; font-family: verdana, sans-serif; font-size: 13px; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: 36pt;">Ian Greenway</span></i></span></span></p><div style="clear: both;"></div></div><h4 style="text-align: left;"><span><a name='more'></a></span>In a Wrongful Death case in August 2021, a Georgia family was awarded $200M after their son was killed in a boating accident.</h4><p>A young boy died after getting caught in a boat propeller while boating with his family. It was determined that the boat manufacturers were aware of a potential safety issue but had failed to warn boaters of the danger. The jury awarded $80 million in compensatory damages and $120 million in punitive damages against the boat company. <a href="https://blog.ligmarine.com/2021/12/how-much-limit-should-you-buy-for.html" rel="nofollow" target="_blank">Read More: How much limit should you buy for a recreational boat builder?</a></p><span><!--more--></span><h4 style="text-align: left;">In a Sexual Assault case, a woman who worked as a stewardess on a luxury yacht was awarded more than $70 million.</h4><p>Left alone on the yacht overnight with only the captain and a deck hand, the woman said she was sexually assaulted and sued the yacht’s owner, her employer, who failed to provide proper security measures for their employees. <a href="https://blog.ligmarine.com/2018/02/do-you-have-enough-limit-on-your-luxury.html" rel="nofollow" target="_blank">Read More: Do you have enough limit on your luxury yacht policies?</a></p><span></span><span><!--more--></span><h4 style="text-align: left;">A Wrongful Death case was settled for $27.9 million after three men died due to inadequate repairs.</h4><p>In 2014, four men went boating on lake using a vessel that was part of a fractional ownership program. On their way back to shore, the boat suffered a severe malfunction that caused the boat to sink, leaving the 4 men in the cold waters of Lake Michigan. Only one man survived. It was later determined that the cause of the malfunction was a port side gimbal bearing that had not been properly repaired. <a href="https://blog.ligmarine.com/2019/04/how-much-limit-is-enough-on-your-boat.html" rel="nofollow" target="_blank">Read More: How much limit is enough on your boat yard policies?</a><br /></p><span><!--more--></span><h4 style="text-align: left;">A Jones Act lawsuit awards more than $16 million to an oil rig worker who suffered from several illnesses after working in “unsanitary conditions”.</h4><p>An oil rig worker won a $16.7 million final judgment with $2 million in punitive damages and $162,600 in attorney fees. George Tillman had worked on an oil rig in the waters off Qatar when he allegedly contracted viral pneumonia, leading to multiple medical conditions, including blood clots and depression. <a href="https://blog.ligmarine.com/2015/02/is-this-record-admiralty-award.html" rel="nofollow" target="_blank">Read More: Record Admiralty Award?</a></p><p><span></span></p><!--more--><p></p><h4 style="text-align: left;">In a Sexual Assault lawsuit against a cruise line, a woman was awarded $10.2M in July 2022.</h4><p>A woman claimed she had been sexually assaulted by a crew member while on a cruise in 2018. In possibly the largest verdict ever for this type of case against a major cruise line, the jury awarded $243,000 to the plaintiff for past and future medical and psychological expenses and $10 million in additional damages for physical and emotional distress. <a href="https://www.washingtonpost.com/travel/2022/07/23/carnival-verdict-rape-lawsuit/" rel="nofollow" target="_blank">Read more here...</a></p><span><!--more--></span><h4 style="text-align: left;">Jones Act lawsuit awarded $7.5 million for injuries sustained during an air tank explosion.</h4><p>A native of Puerto Rico was awarded a record $7.5 million settlement in a back and neck injury lawsuit following the explosion of an air tank aboard a marine vessel that was docked for repairs. <a href="https://blog.ligmarine.com/2014/12/" rel="nofollow" target="_blank">Read More: Another Record Jones Act Award?</a></p><span><!--more--></span><h4 style="text-align: left;">In a Casualty lawsuit in June 2021, $3.4M was awarded to the daughter of a man who died on a cruise due to medical malpractice.</h4><p>The daughter of a 70-year-old man who died on a cruise sued Royal Caribbean for medical malpractice and was awarded $3.4 million. The ship’s doctor diagnosed his heart condition correctly but administered medications that exacerbated the condition, causing the man to suffer a heart attack.</p><span><!--more--></span><h4 style="text-align: left;">The US Federal Government settled a Jones Act lawsuit for $2 million.</h4><p>A 58-year-old civilian maritime worker received a Jones Act settlement after being seriously injured while working aboard a United States military ship in the port of Jangu, South Korea. This verdict is not particularly large, but it shows that not even the federal government is exempt from these escalating claims. <a href="https://blog.ligmarine.com/2020/10/us-federal-government-settle-jones-act.html" rel="nofollow" target="_blank">Read More: Federal government Settles Jones Act suit</a></p>LMChttp://www.blogger.com/profile/04565235674873550184noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-19890666038362372362022-04-07T15:16:00.003-04:002022-04-27T16:57:36.913-04:00Marine Applications Reinvented<p>Traditional monoline marine insurance applications can be frustrating because they require repeat entry of common data. When quoting a marine package using one of these applications, you're asked to provide the address, years in business, description of operations, and other basic information on a single account multiple times. This can be very time-consuming for busy agents. </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEij3nMLl66rwHQw8odhRIHCQVLeaMNbQAyiJg8hFY2Cz1GMlH_MuLR2UwOCDKU9izZhOqGPWZP31vS7pJPxcOn7jtan3BUKfeAABif9BI7_PZ4qcVs40PZJDnO0CaCusoZKCfVsh75bb78DkXMZrH9wM7gtYedbPnfx9eT_bvrF8YwBwU7VPoadOwoB/s2584/option-writing-checkbox-concepts-survey.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1724" data-original-width="2584" height="247" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEij3nMLl66rwHQw8odhRIHCQVLeaMNbQAyiJg8hFY2Cz1GMlH_MuLR2UwOCDKU9izZhOqGPWZP31vS7pJPxcOn7jtan3BUKfeAABif9BI7_PZ4qcVs40PZJDnO0CaCusoZKCfVsh75bb78DkXMZrH9wM7gtYedbPnfx9eT_bvrF8YwBwU7VPoadOwoB/w371-h247/option-writing-checkbox-concepts-survey.jpg" width="371" /></a></div><p>At LIG, we've developed a new approach to applications. Our Commercial Marine General Application allows us to collect all the general data for a specific account just once. In addition, we've been able to reduce most of the supplements to just one or two pages, vastly reducing the time and work needed to prepare a comprehensive submission for a marine package.</p><p>To make submissions as convenient as possible, we've made our Commercial Marine General Application and the supplements you need for each line available 24/7/365 online at <a href="http://LIGMarine.com/Apps/Printable">https://ligmarine.com/Apps/Printable</a>.</p><p></p><ul style="text-align: left;"><li>Commercial General Application</li><li>Boat Manufacturers Supplement</li><li>Commercial Vessel Supplement</li><li>Diving Supplement</li><li>Equipment Supplement</li><li>Marine General Liability Supplement</li><li>Marine Umbrella Supplement</li><li>Oil Pollution Liability Supplement</li><li>P&I Supplement</li><li>Terminal Operators Liability Supplement</li><li>Wharfingers Supplement</li></ul><p></p><p>If you are not actively involved in Commercial Marine and need to identify the lines of coverage you need, use our simple tool MARCOVER at <a href="http://LIGMarine.com/MarCover">LIGMarine.com/MarCover</a> and then access the apps you need at <a href="https://ligmarine.com/Apps/Printable">https://ligmarine.com/Apps/Printable</a>.</p><p>When your submission is ready, just email it to <b>SUBMIT@LIGMarine.com</b> and one of our underwriters will be assigned to walk you through the process.</p><p>For questions or support, please email us at <b>ASK@LIGMarine.com</b>. </p>Treehouse Marketinghttp://www.blogger.com/profile/10845663168988556086noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-27730804687228649132022-02-01T10:02:00.087-05:002022-02-01T11:42:15.253-05:00Proposed New Coverage Requirements for Fisheries Observers<p class="p1" style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal; margin: 0px; text-align: left;"><span class="s1" style="font-family: inherit; font-kerning: none;">For many years the National Marine Fisheries Service (NMFS) has been working to align the insurance coverage requirements for Fishery Observers across its various regions and to supply a set of attainable requirements. </span></p><p class="p1" style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal; margin: 0px; text-align: left;"><span class="s1" style="font-family: inherit; font-kerning: none;"> <span class="Apple-converted-space"> </span></span></p><p class="p1" style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal; margin: 0px; text-align: left;"><span class="s1" style="font-family: inherit; font-kerning: none;">This culminated with an Observer Provider Insurance Workshop on election day 2016 in Washington DC. I was fortunate enough to be invited to this 2-day workshop to discuss this topic with fellow industry representatives.</span></p><p class="p1" style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal; margin: 0px; text-align: left;"><span class="s1" style="font-family: inherit; font-kerning: none;"> <span class="Apple-converted-space"> </span></span></p><p class="p1" style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal; margin: 0px; text-align: left;"><span class="s1" style="font-family: inherit; font-kerning: none;">National Marine Fisheries Service, also known as NOAA Fisheries, is an office of the National Oceanic and Atmospheric Administration within the Department of Commerce. The organization is tasked with overseeing the various fishery observer programs designed to protect and monitor fisheries across the US. Their National Observer Program <i><span style="background-color: white; color: #666666;">"Allows NOAA Fisheries to address observer issues of national importance and develop overarching policies and procedures that reflect the diverse needs of regional observer programs."</span></i></span></p><p class="p1" style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal; margin: 0px; text-align: left;"><span class="s1" style="font-family: inherit; font-kerning: none;"><i><br /></i></span></p><p class="p1" style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal; margin: 0px; text-align: left;"><span class="s1" style="font-family: inherit; font-kerning: none;"></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEg05yWEa2jeR9LXr1JbkLiP8tG9q0MhQ4ikXp19DEANto8Gqh4SSaN-62j6PnzzE0Wc71Sm63dn1S009npUxSnD7eUrRWMyjqxU14u7Z2haogxMV4Uc6lbje8iFrQwKViEp8cJBQMCkFkv9qHMM53sLRgxAcVl4CEsER4xovSUFv83LoAbfRQ8nM0du=s3936" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><span style="font-family: inherit;"><img border="0" data-original-height="2624" data-original-width="3936" height="266" src="https://blogger.googleusercontent.com/img/a/AVvXsEg05yWEa2jeR9LXr1JbkLiP8tG9q0MhQ4ikXp19DEANto8Gqh4SSaN-62j6PnzzE0Wc71Sm63dn1S009npUxSnD7eUrRWMyjqxU14u7Z2haogxMV4Uc6lbje8iFrQwKViEp8cJBQMCkFkv9qHMM53sLRgxAcVl4CEsER4xovSUFv83LoAbfRQ8nM0du=w400-h266" width="400" /></span></a></div><p class="p1" style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal; margin: 0px; text-align: left;"><span style="font-family: inherit;">Their goal has been to establish uniform, nationally consistent minimum insurance requirements that would apply to all their observer programs and would:</span></p><p style="text-align: left;"></p><ul style="text-align: left;"><li><span style="font-family: inherit;">Specify authorized observer provider companies’ responsibilities as the observer employer. <span class="Apple-converted-space"> </span></span></li></ul><ul style="text-align: left;"><li><span style="font-family: inherit;">Provide regionally consistent insurance requirements through national minimum standards.<span class="Apple-converted-space"> </span></span></li></ul><ul style="text-align: left;"><li><span style="font-family: inherit;">Offer an insurance suite that better addresses the risks observers, their employers, and vessels may face with observer deployments.</span></li></ul><ul style="text-align: left;"><li><span style="font-family: inherit;">Minimize the regulatory burden through the removal of redundancy and unnecessary requirements.</span></li></ul><ul style="text-align: left;"><li><span style="font-family: inherit;">Clarify the applicability of statutory and common law authorities to observers, whether deployed at sea or shoreside.</span></li></ul><div style="text-align: left;"><p style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal; margin: 0px;"><span class="s1" style="font-kerning: none;"><span style="font-family: inherit;">Finally, a little over five years after that workshop, they have published a proposed rule. You can find the detail of the proposed rule <a href="https://www.federalregister.gov/documents/2021/11/22/2021-25367/establish-national-minimum-insurance-standard-for-national-marine-fisheries-service-programs-that" rel="nofollow" target="_blank">here in the federal register</a>.</span></span></p><p style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal; margin: 0px;"><span style="font-family: inherit;"><span class="s1" style="font-kerning: none;"><br /></span><span class="s1" style="font-kerning: none;">What’s my take on their proposal? The concept makes a lot of sense, but some of the terminology and coverages do not reflect the actual policies available to address the coverage of an Observer.<br /></span><span class="s1" style="font-kerning: none;">I have posted my comments and suggestions to their response site to provide one clear set of national insurance requirements. You may also <span class="s3" style="font-kerning: none;"><a href="https://ligresources.blob.core.windows.net/public/NOAA%20Response%20Letter%2015%20Jan%202022.pdf." rel="nofollow" target="_blank">download my response here</a></span>.</span></span></p></div><p style="text-align: left;"></p><div style="text-align: left;"><br /></div><div><i style="background-color: white; color: #333333; font-family: verdana, sans-serif; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: x-large;">Ian Greenway</span></i></div>Treehouse Marketinghttp://www.blogger.com/profile/10845663168988556086noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-72288347421707564592022-01-04T12:29:00.001-05:002022-01-04T12:29:00.151-05:00Longshore Act’s Recreational Vessel Exclusion Only Applies Where State Compensation Law is Available<p>In a recent Longshore case, Brizo LLC v. Carbajal, the United States Court of Appeals for the Eleventh Circuit analyzed the recreational vessel exclusion of the Longshore Act.</p><p>The Longshore Act excludes from its coverage “individuals employed to build any recreational vessel under sixty-five feet in length, or individuals employed to repair any recreational vessel or to dismantle any part of a recreational vessel in connection with the repair of such vessel”, only if such employees are afforded coverage under an applicable state workers’ compensation statute. </p><p>While cleaning the hull of a yacht, a commercial diver, Luis Gorgonio Ixba, was killed when a vessel crew member engaged the bow thrusters. Ixba arrived but failed to inform anyone on the vessel of his arrival and immediately began his dive. He failed to deploy the diving flag, the purpose of which is to indicate to those on the surface that a diver is down.</p><p>The Chief Mate needed to move the vessel closer to the dock to load jet skis. Before engaging the bow thrusters, the Chief Mate checked for bubbles but saw none. </p><p>The personal representatives filed a wrongful death suit in Florida state court. The trial court granted summary judgment for the vessel owner and held that the Decedent was an employee covered by the Longshore Act.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEif8zL7qGnbnqGze49tEXR-EejTpF-bPx2L4DVcnQ8E_G5TJQ399l-ctRZ8oOVajRTbqAfOzuPr99U4BBlRL_LTbajMxlRRC6A-76Gzo0LKD8Ho9vyP-GyJPlBNKFRW2XGbIhzSQoO6gaEDcnOiiKHlTaTjAcYYMePDlU7AzbYB4l33f73sQWKf4g7W=s4740" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="3164" data-original-width="4740" height="429" src="https://blogger.googleusercontent.com/img/a/AVvXsEif8zL7qGnbnqGze49tEXR-EejTpF-bPx2L4DVcnQ8E_G5TJQ399l-ctRZ8oOVajRTbqAfOzuPr99U4BBlRL_LTbajMxlRRC6A-76Gzo0LKD8Ho9vyP-GyJPlBNKFRW2XGbIhzSQoO6gaEDcnOiiKHlTaTjAcYYMePDlU7AzbYB4l33f73sQWKf4g7W=w640-h429" width="640" /></a></div><p>The Court addressed whether the vessel was exempt from the Longshore Act on appeal. It was undisputed that the Decedent diver was injured on “navigable waters”, satisfying situs. Based on prior precedent, a commercial diver commissioned to scrape barnacles from the hull of a docked vessel satisfies the status test. Again, arguing that the Longshore Act does not apply, Decedent’s personal representatives argued “recreational vessels” are exempt from the Longshore Act. The vessel owner argued the portion of that statute omitted from Decedent’s argument; that the exclusion only applies to employees working on recreational vessels only “if [they] are subject to coverage under a State workers’ compensation law.”</p><p>The Court held that there was no evidence or argument from Decedent that state worker’s compensation law covers the claim. However, the Court did note that Decedent’s Employer stated in a sworn interrogatory response that Decedent actually “was a Truly Self-Employed Independent Contractor with no Controlling Employer.” The Court concluded that Florida workers compensation law excludes independent contractors not engaged in the construction industry from its coverage. Accordingly, the Decedent could not be covered by state law. Thus, the recreational vessel exclusion is inapplicable, and the Longshore Act is applicable.</p><p></p><p>This exclusionary wording has been in the Longshore act for nearly 30 years. Still, this case illustrates how it will be interpreted and used as a precedent for future claims in recreational marine, especially for independent contractors. </p><p><br /></p><p><span style="font-family: inherit;"><span class="s3" style="font-kerning: none; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"><i style="background-color: white; color: #333333; font-family: verdana, sans-serif; font-size: 13px; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: 36pt;">Ian Greenway</span></i></span></span></p>Treehouse Marketinghttp://www.blogger.com/profile/10845663168988556086noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-87944568526560225132021-12-14T16:05:00.001-05:002021-12-14T16:05:00.161-05:00How Much Limit Should You Buy For A Recreational Boat Builder?<p style="text-align: left;"><span style="font-family: inherit;"><span class="s1" style="color: #2a2a2a; font-kerning: none;">In a landmark court ruling earlier this year, a jury awarded a $200 Million verdict to a family that tragically lost their 7-year-old son in a boating accident in 2014 resulting in </span><span class="s2" style="background-color: white; color: #2a2a2a; font-kerning: none;">the largest single verdict for the pain and suffering for wrongful death in the history of the State of Georgia.<span class="Apple-converted-space"> <br /></span></span></span><span style="font-family: inherit;"><span style="background-color: white; color: #2a2a2a;"><br /></span></span><span style="background-color: white; color: #2a2a2a;"><span style="font-family: inherit;">"The jury sent a very loud and clear message to Malibu and the entire boating industry that manufacturers who have actual knowledge of life threatening safety hazards and intentionally fail to warn and withhold information of dangerous conditions will be held accountable," said </span></span><span style="background-color: white; color: #2a2a2a;">Don Fountain, lawyer for the plaintiffs.</span></p><p style="text-align: left;"><span style="font-family: inherit;"><span style="color: #2a2a2a;"><span style="font-family: arial;"><img border="0" data-original-height="4160" data-original-width="6240" height="426" src="https://blogger.googleusercontent.com/img/a/AVvXsEjc9GZ7iLiiJsdMP3fSTqpRfTtzaNcRxOZkpXS9uu8qutrWPAqF27GCVYAk0dFcM-t2PaaSSqG5OXPZg7nlTgbirw2--0YZSSFB2OAPcVKChdt1qv-jdO6r8mG_kgKiOxxtgol_7FrrqOqe96lJDEx2JfmmMsqR11A-7wPQIEcibnOjYLclrSIncQkq=w640-h426" width="640" /></span></span></span></p><p style="text-align: left;"><span style="font-family: inherit;"><span style="color: #2a2a2a;">In </span><span style="color: #2a2a2a;">2014, the Batchelder family rented a 2000 Malibu Response LX open bow ski boat. While the boat was operated at about 5-7 mph and loaded hundreds of pounds below the maximum rated capacity, the bow, carrying four children, swamped washing young Ryan Batchelder into the water. The operator, who did not see Ryan being washed overboard, briefly put the boat into reverse to prevent sinking. Ryan died as a result of drowning and significant injuries. </span></span></p><p style="text-align: left;"><span style="font-family: inherit;"><span style="color: #2a2a2a;">Malibu Boats designed this specific open bow boat model by cutting a hole in the forward deck of a closed bow boat and adding seats. During the trial, it was determined that occupant weight forward decreased bow freeboard, making the boat susceptible to bow swamping. What’s more, the design trapped and held water flowing over the bow, exacerbating the swamping effect.</span><span class="Apple-converted-space" style="color: #2a2a2a;"> </span></span></p><p style="text-align: left;"><span style="font-family: inherit;">Malibu defendants were aware of the swamping hazard and the jury found that they were negligent for failing to provide warnings concerning the bow swamping hazard. Because Malibu had made the conscious decision not to warn the boat users, the jury awarded punitive damages. The plaintiffs were awarded $80 million for their son’s pain and suffering and wrongful death and an additional $120 million in punitive damages. </span></p><p style="text-align: left;"><span style="font-family: inherit;"><span style="color: #2a2a2a;">What would happen if your client had a similar loss? </span><span style="color: #2a2a2a;">The issue of coverage for punitive damages varies based on state law and carrier practice, but even without punitive, an $80 million claim plus defense costs is a significant expense. It’s important to consider a case like this when recommending coverage to your recreational boat manufacturer clients. How much coverage would your client need in this case?</span><span class="Apple-converted-space" style="color: #2a2a2a;"> </span><span class="s1" style="color: #2a2a2a; font-kerning: none;">Further, if your carrier does not exclude punitive damages, and the law of the state of the suit allows punitive to be insured, should you recommend higher limits to allow for punitive?</span><span class="s3" style="font-kerning: none; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span></p><p style="text-align: left;"><span style="font-family: inherit;"><span class="s3" style="font-kerning: none; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"><br /></span></span></p><p style="text-align: left;"><span style="font-family: inherit;"><span class="s3" style="font-kerning: none; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"><i style="background-color: white; color: #333333; font-family: verdana, sans-serif; font-size: 13px; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: 36pt;">Ian Greenway</span></i></span></span></p><p style="text-align: left;"><span style="font-family: inherit;"><span class="s3" style="font-kerning: none; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"><i style="background-color: white; color: #333333; font-family: verdana, sans-serif; font-size: 13px; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: 36pt;"><br /></span></i></span></span></p>Treehouse Marketinghttp://www.blogger.com/profile/10845663168988556086noreply@blogger.comSt. Petersburg, FL 33701, USA27.7696063 -82.6321376-0.540627536178846 -117.7883876 56.079840136178845 -47.475887599999993tag:blogger.com,1999:blog-1403766222453386383.post-19845675617484848752021-06-22T10:42:00.000-04:002021-06-22T10:42:20.682-04:00 Workers Compensation 3A vs 3C<p style="text-align: justify;"><span style="font-family: verdana;"> <span style="color: #0e101a;">"If you have work on the
effective date of this policy in any state not listed in 3A, then coverage will
not be provided for that state unless the insurance company is notified within
thirty days."</span></span></p>
<p style="margin: 0in; text-align: justify;"><span style="color: #0e101a;"><span style="font-family: verdana;">That is the standard wording
found in most WC policies across the country. But it is easy to fail to
understand the importance of identifying all states of operation upfront and
including them all in 3A.<o:p></o:p></span></span></p>
<p style="margin: 0in; text-align: justify;"><span style="color: #0e101a;"><span style="font-family: verdana;"> <o:p></o:p></span></span></p>
<p style="margin: 0in; text-align: justify;"><span style="color: #0e101a;"><span style="font-family: verdana;">Let's say a Texas-based
employer has a job in Louisiana at the policy's effective date; there is no
coverage for work in Louisiana unless you notify the carrier within 30 days. It
does not matter if that job is just two days in Louisiana or whether another
job is the one that has the claim; the coverage for Louisiana is non-existent,
EVEN IF Louisiana is listed in 3C.<o:p></o:p></span></span></p>
<p style="margin: 0in; text-align: justify;"><span style="color: #0e101a;"><span style="font-family: verdana;">The worst part is that it is
usually free or minimal cost to add a state to 3A.<o:p></o:p></span></span></p><p style="margin: 0in;"><span style="color: #0e101a;"><span style="font-family: verdana;"><br /></span></span></p>
<p style="margin: 0in;"></p><div class="separator" style="clear: both; text-align: center;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgM2th2HAdxZEhkTdZ4o7QZCu6hlc-6zbrKcI_j4ccAAyWS_vyTc-XbsNeTFpiWV_MTnOCLkBhy-wveJROpObx_26Ybrdoapeg7sK8AW-El23OJ1x1jKjt4XkDeKbQzhgnklZ-6vlL2i7nN/s2048/AdobeStock_248618801.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1348" data-original-width="2048" height="253" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgM2th2HAdxZEhkTdZ4o7QZCu6hlc-6zbrKcI_j4ccAAyWS_vyTc-XbsNeTFpiWV_MTnOCLkBhy-wveJROpObx_26Ybrdoapeg7sK8AW-El23OJ1x1jKjt4XkDeKbQzhgnklZ-6vlL2i7nN/w383-h253/AdobeStock_248618801.jpeg" width="383" /></a></div><br /></div><span style="color: #0e101a;"><span style="font-family: verdana;"> <o:p></o:p></span></span><p></p>
<p style="margin: 0in; text-align: justify;"><span style="font-family: verdana;"><strong><span style="color: #0e101a;">Gulf Coast States:</span></strong><span style="color: #0e101a;"><o:p></o:p></span></span></p>
<p style="margin: 0in; text-align: justify;"><span style="color: #0e101a;"><span style="font-family: verdana;">Especially marine businesses
move across the four Gulf states, many of them almost daily. We strongly
recommend adding all four Gulf states, Texas, Louisiana, Mississippi &
Alabama to 3A for any business operating in the Gulf.<o:p></o:p></span></span></p>
<p style="margin: 0in; text-align: justify;"><span style="color: #0e101a;"><span style="font-family: verdana;"> <o:p></o:p></span></span></p>
<p style="margin: 0in; text-align: justify;"><span style="font-family: verdana;"><strong><span style="color: #0e101a;">Other States:</span></strong><span style="color: #0e101a;"><o:p></o:p></span></span></p>
<p style="margin: 0in; text-align: justify;"><span style="color: #0e101a;"><span style="font-family: verdana;">If you have a marine
business, in say, San Diego, you may well never leave California, but if you
are in Rhode Island, then you probably work in four states pretty much daily.<o:p></o:p></span></span></p>
<p style="margin: 0in; text-align: justify;"><span style="color: #0e101a;"><o:p><span style="font-family: verdana;"> </span></o:p></span></p>
<p style="margin: 0in; text-align: justify;"><span style="color: #0e101a;"><span style="font-family: verdana;">Ensure ALL states where the
insured COULD work are listed in 3A, just in case of ongoing work at the
effective date.</span><o:p></o:p></span></p><p style="margin: 0in;"><span style="color: #0e101a;"><br /></span></p><p style="margin: 0in;"><i style="background-color: white; color: #333333; font-family: verdana, sans-serif; font-size: 13px; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: 36pt;">Ian Greenway</span></i></p>Blog Authorhttp://www.blogger.com/profile/04006240690921776499noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-53026552488455341512021-04-06T10:27:00.000-04:002021-04-06T10:27:42.296-04:00Eliminating the Mystery in Marine Insurance<p> <span style="color: #0e101a; font-family: verdana; text-align: justify;">Marine insurance has long been cloaked in mysterious
terminology, and the coverages needed for any business have been difficult to
convey clearly. To allow you to navigate these waters, LIG has launched a
web-based tool, <a href="https://www.ligmarine.com/MarCover" target="_blank">LIG MarCover</a>, designed to remove this mystery and empower an
agent or broker to identify the exposures and coverages needed to ensure your
clients properly.</span></p>
<p style="margin: 0in; text-align: justify;"><span style="font-family: verdana;"><span style="color: #0e101a;"></span></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-family: verdana;"><span style="color: #0e101a;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLz2pQT-rSd9OoDVoAA7cv2qSmnOxUkdvhW9GxZtFLMFcuM9JgBUgol5inMFDTCz4ZStuZm1DhaOZ-NswEn9ow82Km7GG2-5R6yQt7hoEvLVoB5JHyYZclOpFj7IB9FzrkpDbAUyPugRJK/s2048/Floating+crane+and+marine+tug+seawall.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1366" data-original-width="2048" height="151" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLz2pQT-rSd9OoDVoAA7cv2qSmnOxUkdvhW9GxZtFLMFcuM9JgBUgol5inMFDTCz4ZStuZm1DhaOZ-NswEn9ow82Km7GG2-5R6yQt7hoEvLVoB5JHyYZclOpFj7IB9FzrkpDbAUyPugRJK/w227-h151/Floating+crane+and+marine+tug+seawall.jpg" width="227" /></a></span></span></div><span style="font-family: verdana;"><span style="color: #0e101a;">The LIG MarCover site is available on any browser and can run
from your smartphone or tablet. It's designed specifically for anyone who is
not experienced in Commercial Marine insurance to walk through a short set of
questions and get the basic marine coverages needed in under 2 minutes. There
is no Marine insurance knowledge required to answer the questions (mostly
Yes/No), and it takes you less than 2 minutes to complete.</span><span style="color: #0e101a;"><o:p></o:p></span></span><p></p>
<p style="margin: 0in; text-align: justify;"></p><div class="separator" style="clear: both; text-align: center;"></div><p></p>
<p style="margin: 0in; text-align: justify;"><span style="font-family: verdana;"><span style="color: #0e101a;">The questions address various business aspects of just about any
account </span></span><span style="color: #0e101a; font-family: verdana;">with a Commercial Marine exposure. Once answered, it delivers a simple
shopping list of the coverages needed for that marine business and the ability
to instantly download the applications and supplements for each exposure. Upon
completion, it automatically emails you a summary of your answers and the
recommended coverages.</span></p>
<p style="margin: 0in; text-align: justify;"><span style="color: #0e101a;"><o:p><span style="font-family: verdana;"> </span></o:p></span></p>
<p style="margin: 0in; text-align: justify;"><span style="font-family: verdana;"><span style="color: #0e101a;">To support you, LIG then offers our team of marine specialists,
who delve deeper into the account and refine the coverages as needed.</span></span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="font-family: verdana;">Go to <a href="https://www.ligmarine.com/MarCover">LIGMarine.com/MarCover</a>
to determine the proper coverages for your marine clients.</span><span style="font-family: verdana;"> </span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="font-family: verdana;">Questions? Email <a href="mailto:Ask@LIGMarine.com">Ask@LIGMarine.com<br /></a></span>
<i style="font-weight: bold;"><o:p></o:p></i></p>Blog Authorhttp://www.blogger.com/profile/04006240690921776499noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-28416833182593979932021-03-12T11:22:00.000-05:002021-03-12T11:22:52.969-05:00Longshore Act & Covid Claims<p style="text-align: justify;"><span style="font-family: verdana;">President Biden has signed the American
Rescue Plan Act of 2021 into law.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Whilst the earlier version of this bill
included a change to the Longshore and Harbor Workers' Compensation Act, that
Covid-19 claims would be automatically covered, the final version of the bill
did not include this provision. So, at least for the time being, there is no
change in the Longshore Act in so far as Covid claims are concerned.</span><span style="font-family: verdana; font-size: 10pt;"> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Covid-19, like any other flu or virus,
is generally not covered by Longshore. The only time it can be covered is
when the risk of illness at the worksite is above and beyond that of
everyday life. The employer has the opportunity to provide evidence that the illness is not
work-related. The claimant then must provide some evidence of a connection
between the “injury” and their work.</span></p>
<i style="background-color: white; color: #333333; font-family: verdana, sans-serif; font-size: 13px; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: 36pt;"> </span></i><div><i style="background-color: white; color: #333333; font-family: verdana, sans-serif; font-size: 13px; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: 36pt;">Ian Greenway</span></i><br /><br /><p></p></div>Blog Authorhttp://www.blogger.com/profile/04006240690921776499noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-345151475443314012021-02-12T22:05:00.000-05:002021-02-12T22:05:00.169-05:00Dredging up the Real Exposure for a Dredging Company<p> </p><p class="MsoNormal" style="text-align: left;"><span style="font-family: verdana;">The most common misconceptions when covering dredging
company employees revolve around admiralty jurisdiction and Jones Act seaman
status.</span></p><p class="MsoNormal" style="text-align: left;"><span style="font-family: verdana;"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: left;"><span style="font-family: verdana;">Many dredging companies, whose main operation is dredging on
“navigable” waters, assume that admiralty coverage applies for all their
exposures. However, admiralty coverage only covers those who have a substantial
connection to a vessel (>30% of their time) <b><i>AND </i></b>are working on
navigable waters. <o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: left;"><span style="font-family: verdana;">If you are working on non-navigable waters (such as a land-locked
lake) coverage flows to State Act Workers Compensation.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: left;"><span style="font-family: verdana;">If working on or alongside navigable waters, but do not meet
that 30% test, that will fall under Longshore.<span style="mso-spacerun: yes;">
</span>This will most commonly happen for workers operating land-based
equipment from the shore.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: left;"><span style="font-family: verdana;">So, what about employees that work both on land, and on or from,
vessels?<span style="mso-spacerun: yes;"> </span>As an example, an employee
primarily works on the dredge or towboat and performs landscaping work away
from the water during the dredging off-season. This employee would be
considered both a Jones Act seaman and would also have exposure under state act
workers compensation. <o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: left;"><span style="font-family: verdana;">Unfortunately, you cannot tack on P&I, MEL, or other
marine policy coverage for these incidental exposures on land. You will most commonly
need at least 2 different policies, one for the WC/Longshore and the other for
the Admiralty exposures.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: left;"><span style="font-family: verdana;"><span style="mso-spacerun: yes;"> </span>The easiest way to cover
the admiralty exposures is to provide a separate MEL policy or include crew
coverage in the Protection and Indemnity policy.<span style="mso-spacerun: yes;"> </span>Do however remember that a typical P&I
policy only covers activities on owned/operated <b><i>AND</i></b> scheduled
vessels.<span style="mso-spacerun: yes;"> </span>If there is any work on/from
non-owned vessels, MEL is a better solution.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: left;"><span style="font-family: verdana;">Bottom line is for every dredging company you should have in
force:<o:p></o:p></span></p><ul style="text-align: left;"><li><span style="font-family: verdana;">State Act WC</span></li><li><span style="font-family: verdana;">Longshore</span></li><li><span style="font-family: verdana;">MEL or Crew coverage in the P&I</span><span style="font-family: verdana;"><o:p></o:p></span>
</li></ul><p class="MsoNormal" style="text-align: left;"><span style="font-family: verdana;">We cannot tell the injured employee, or their attorney,
where/how to bring a claim, so without ALL these coverages, you may well have a
hole not only for benefits, but for possible defense coverage. Weirdly we have
seen dredge employees file for Longshore even though in land-locked waters, and
even though they were unsuccessful in obtaining those benefits, the “if any” Longshore
endorsement on their WC policy provided unlimited defense cost coverage.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: left;"><o:p><span style="font-family: verdana;"> </span></o:p></p><p class="MsoNormal" style="text-align: left;"><span style="font-family: verdana;"><o:p><span style="background-color: white; font-variant-ligatures: common-ligatures;">Learn more about this at </span></o:p><span style="font-variant-ligatures: common-ligatures;"><a href="https://register.gotowebinar.com/register/1361156225648910862">Dredging up the Real Exposure webinar on February 18th, 11:30 am EST</a></span></span></p>
<i style="background-color: white; color: #333333; font-family: verdana, sans-serif; font-size: 13px; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: 36pt;"><div><i style="background-color: white; color: #333333; font-family: verdana, sans-serif; font-size: 13px; text-align: justify;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: 36pt;"><br /></span></i></div>Ian Greenway</span></i><br />
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>Blog Authorhttp://www.blogger.com/profile/04006240690921776499noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-47730217658641643742020-10-07T14:34:00.002-04:002020-10-14T16:22:16.051-04:00US Federal Government Settle Jones Act Lawsuit for $2 Million<p> </p><p style="background: white none repeat scroll 0% 0%; margin: 0in 0in 15pt; text-align: justify;"><span face=""Arial",sans-serif" style="color: #444444; font-size: 12pt;">A 58-year-old civilian maritime worker received a Jones Act
settlement after being seriously injured while working aboard a United
States military ship in the port of Jangu, South Korea.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white none repeat scroll 0% 0%; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; margin: 0in 0in 15pt; orphans: 2; text-align: justify; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;"><span face=""Arial",sans-serif" style="color: #444444; font-size: 12pt;">The accident happened on August 2, 2010, onboard the S.S. Cape Jacob, a
prepositioning ship operated by the Military Sealift Command. The man
said he was ordered to secure mooring lines to the dock, but the captain of the
ship ordered a tug, towing the ship into the dock, to pull away before the man
was able to fully secure the mooring lines. This reportedly caused one of the
lines to break and then snap back, striking the seamen. He suffered a brain
injury and compound fractures in this incident.<o:p></o:p></span></p>
<p style="-webkit-text-stroke-width: 0px; background: white none repeat scroll 0% 0%; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; margin: 0in 0in 15pt; orphans: 2; text-align: justify; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;"><span face=""Arial",sans-serif" style="color: #444444; font-size: 12pt;">A lawsuit was filed against the federal government, which alleged negligence
under the Jones Act. This lawsuit sought damages for past and future pain and
suffering, medical bills, lost income, and physical impairment but never went
to trial and was instead settled for $2 million.<o:p></o:p></span></p><p style="-webkit-text-stroke-width: 0px; background: white none repeat scroll 0% 0%; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; margin: 0in 0in 15pt; orphans: 2; text-align: justify; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;"><span face=""Arial",sans-serif" style="color: #444444; font-size: 12pt;"><br /></span></p><p style="-webkit-text-stroke-width: 0px; background: white none repeat scroll 0% 0%; box-sizing: border-box; font-variant-caps: normal; font-variant-ligatures: normal; margin: 0in 0in 15pt; orphans: 2; text-align: justify; text-decoration-color: initial; text-decoration-style: initial; widows: 2; word-spacing: 0px;"><span face=""Arial",sans-serif" style="color: #444444; font-size: 12pt;"><i style="color: #333333; font-family: verdana, sans-serif; font-size: 13px;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #3333cc; font-family: "brush script mt"; font-size: 36pt;">Ian Greenway</span></i></span></p>Blog Authorhttp://www.blogger.com/profile/04006240690921776499noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-6716312541007138012019-08-28T10:36:00.001-04:002019-08-28T11:59:30.652-04:00Activity-Based Maritime Employee Coverage?<div class="MsoNormal" style="line-height: normal;">
<span style="font-family: "verdana" , sans-serif; text-align: justify;"><br /></span>
<span style="font-family: "verdana" , sans-serif; text-align: justify;">I was recently asked if it would be possible to put a Marine Workers' Compensation policy in place that could cover a specific incident.</span></div>
<div class="MsoNormal" style="line-height: normal;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">While the question itself appeared logical, fully covering marine
employees is not a one-stop-shop.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">They were asking for a coverage opinion based on an “activity”
(such as diving, or welding) but unfortunately, the law does not allow the
activity to be the sole determinate of what policy can and will respond.</span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif;"><br /></span>
<span style="font-family: "verdana" , sans-serif;">An example can be made from Admiralty Claims.</span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<br />
<div style="text-align: left;">
<div style="text-align: justify;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjIr8j91bAnsJBlymF0tmoisN9J7KvF6dgz5sGXuWt8H4UPVk7EX-ZuVDCKeQ7M9TN7KSc_Ppx55sEIYL_DvUWXAZYG18oaovsxx8aSCtwqNThVU4gYFBHcwLgSxHRvxdthJLaS07Z_zMH7/s1600/Untitled-2.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em; text-align: justify;"><span style="font-family: "verdana" , sans-serif;"><img border="0" data-original-height="568" data-original-width="1324" height="85" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjIr8j91bAnsJBlymF0tmoisN9J7KvF6dgz5sGXuWt8H4UPVk7EX-ZuVDCKeQ7M9TN7KSc_Ppx55sEIYL_DvUWXAZYG18oaovsxx8aSCtwqNThVU4gYFBHcwLgSxHRvxdthJLaS07Z_zMH7/s200/Untitled-2.jpg" width="200" /></span></a><span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Two policy types can respond to “Admiralty” claims (often
wrongly limited to Jones Act claims). They are Maritime Employers Liability and the Crew Coverage available
under a Protection and Indemnity policy.</span></div>
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">
</span></div>
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">To be eligible for “Admiralty” benefits any employee has to pass
some tests, with the most critical being a “substantial connection to a
vessel in navigation”. So let’s break this down: </span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<ol>
<li><span style="font-family: verdana, sans-serif; text-indent: -0.25in;">There must be a
vessel…. They don’t need to be ON the vessel at the time… but they need to use
the vessels to dive/snorkel FROM. If a diver walks in from the dock, they
instantly fail this test.</span></li>
<li><span style="font-family: verdana, sans-serif; text-indent: -0.25in;">It must be in
navigation…. Simplistically away from its home dock - not necessarily moving
but also not in a landlocked lake.</span></li>
<li><span style="font-family: verdana, sans-serif; text-indent: -0.25in;">And the connection must be “substantial”.</span><span style="font-family: verdana, sans-serif; text-indent: -0.25in;"> </span><span style="font-family: verdana, sans-serif; text-indent: -0.25in;">Court
cases have shown that to be in general 30% of their time or more in service of
the vessel, although there are some specific rules around that.</span></li>
</ol>
<ol>
</ol>
</div>
<div class="MsoListParagraph" style="text-align: justify;">
<span style="font-family: "verdana" , sans-serif;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif;"><b>YOU MUST PASS ALL 3 OF THESE TESTS TO GET ADMIRALTY BENEFITS.</b></span></div>
<o:p></o:p>
<br />
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<b><span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span></b></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">If you fail any one of these Admiralty tests, then you fall back under
State Worker’s Compensation or Longshore.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">So, let’s say we have Jane and Bill, both employees, snorkeling from
a vessel in a bay. Both pass tests 1
& 2 quite easily. However, Jane spends 50% of her time working on/from
the boats, while Bill only spends 20% of his time.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Jane will have an Admiralty claim because she spends a
"substantial" amount of time in service of the vessel. Bill won't have an Admiralty claim and he
will get Workers' Compensation benefits instead.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal;">
<div style="text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">These are NOT
insurance rules or policy coverages, these are Federal and State LAWS.<o:p></o:p></span></div>
</div>
<div class="MsoNormal" style="line-height: normal;">
<div style="text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span></div>
</div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Now just to add a wrinkle.<span style="mso-spacerun: yes;">
</span>That does not stop Bill from suing you, and in that case, the Maritime
Employers Liability/Protection and Indemnity policy turns into a defense-cost
policy for you and the rate on those people is much lower because of that.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">To sum this whole explanation up: It is impossible to have a
policy that covers every type of incident that may happen. Required coverage is
dependent on much more than job activity. Maritime Employers Liability and Protection
and Indemnity can never cover Workers’ Compensation. <span style="mso-spacerun: yes;"> </span>Only Workers’ Compensation can cover Workers’
Compensation.</span><o:p></o:p></div>
<br />
<span style="font-family: "verdana" , sans-serif;"><br />
<span style="background-color: white; text-align: left;"><span style="color: #1d1c1d;">Learn more about this at the </span><a href="https://www.iimis.org/schedule/cmipseminarhouston" target="_blank"><span style="color: blue;">Certified Marine Insurance Professional seminar in Houston, TX October 16th-17th, 2019.</span></a></span><br /><br />
</span><br />
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
</div>
<div class="MsoNormal" style="line-height: normal; text-align: justify;">
<span style="font-family: "verdana" , sans-serif;"><i><span style="background: white; color: #3333cc; font-family: "brush script mt"; font-size: 36.0pt;">Ian Greenway</span></i><span style="font-family: "georgia" , serif; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"></span></span></div>
<span style="font-family: "verdana" , sans-serif;">
</span>
<br />
<div style="text-align: justify;">
<span style="font-family: "verdana" , sans-serif;"><br /></span></div>
<span style="font-family: "verdana" , sans-serif;">
</span>Blog Authorhttp://www.blogger.com/profile/04006240690921776499noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-14061780970229498592019-07-01T10:01:00.000-04:002019-07-01T10:01:51.812-04:00Subcontractors and Longshore<div style="text-align: justify;">
</div>
<div style="margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<span style="font-family: "verdana" , sans-serif;"><span style="background: white; color: #333333;">Did
you know that if an Employer has uninsured subcontractors working for
them, <i>they</i> pick up their exposure? And if the subcontractor doesn’t have the proper coverage in place, ie Longshore, it is
now <i>the Employer's</i> responsibility?</span><o:p></o:p></span></div>
<div style="background: white; margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div style="background: white; margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<span style="font-family: "verdana" , sans-serif;"><span style="color: #333333;">Here are just some
of the issues when hiring uninsured subcontractors:</span><o:p></o:p></span></div>
<div style="background: white; margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<span style="font-family: "verdana" , sans-serif;"><span style="color: #333333;"><br /></span></span></div>
<div style="margin: 0in 0in 0.0001pt;">
</div>
<ul>
<li style="text-align: justify;"><span style="background-color: white; color: #333333; font-family: "verdana" , sans-serif;">Under
the Longshore Act, the last responsible employer rule still
applies. Meaning, if a subcontractor’s injury, months or even years
later, is found to be the result of working in the Longshore field, the
claim comes back to </span><span style="background-color: white;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #333333; font-family: "verdana" , sans-serif;">the
Employer</span><span style="color: #333333; font-family: "verdana" , sans-serif;"> even if the subcontractor is no longer working for the
Employer. </span></span></li>
<li style="text-align: justify;"><span style="background-color: white; color: #333333; font-family: "verdana" , sans-serif;">No screening is done before the subcontractor
is hired.</span></li>
<li style="text-align: justify;"><span style="background-color: white; color: #333333; font-family: "verdana" , sans-serif;">The Employer has little to no safety control
over these subcontractors.</span></li>
</ul>
<div>
<div style="text-align: justify;">
<span style="background-color: white; color: #333333; font-family: "verdana" , sans-serif;">Hiring uninsured
subcontractors can also be an issue with the Work Comp Carrier. This may
cause the policy to be canceled as coverage is being extended to people the
Carrier never intended to cover. And did you know that if the Employer is
currently covered by a Leasing Company, there is NO coverage extended to the
uninsured subcontractor as they are not named employees of the Leasing
Company? This leaves the Employer wide open if that uninsured
subcontractor is hurt.</span></div>
</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh1vtVt5hyphenhyphen_609OkWe6MTCbBD94M-9DsL1Q0hUUOqoAWpK2jo752R-7cCvZMxdx9tVM3kDsvQVEaOTspD0oAGqzTkustutigO5-AZrQodVx5xDOXwAVyeUzF4O4qwLy53JF3-q2rGqEeaM/s1600/2019-07-01+09_29_14-LIG+Longshore+Blog_+Preview+_Subcontractors+And+Longshore_.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="76" data-original-width="315" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh1vtVt5hyphenhyphen_609OkWe6MTCbBD94M-9DsL1Q0hUUOqoAWpK2jo752R-7cCvZMxdx9tVM3kDsvQVEaOTspD0oAGqzTkustutigO5-AZrQodVx5xDOXwAVyeUzF4O4qwLy53JF3-q2rGqEeaM/s1600/2019-07-01+09_29_14-LIG+Longshore+Blog_+Preview+_Subcontractors+And+Longshore_.png" /></a></div>
<div style="background: white; margin-bottom: .0001pt; margin: 0in; text-align: justify;">
<br /></div>
<div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; margin: 0in 0in 0.0001pt; text-align: justify;">
<span style="font-family: "verdana" , sans-serif;"><span style="color: #333333;"><span style="background-color: white;">How can this be
handled? When the Employer hires subcontractors, they need to collect,
review and verify proper coverage is in place. Review the certificate and
confirm that it shows State Act Worker’s Compensation, the Longshore
endorsement (or separa</span><span style="background-color: white;">te Longshore Policy), and Maritime Employers Liability if
there is exposure on a vessel in navigation. When the certificates are
being checked and verified, make sure that the Carrier providing the Longshore
coverage is an approved Longshore Carrier by the DOL. <span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;">This can easily be verified by visiting the DOL website below:</span></span></span><span style="background-color: white;"><o:p></o:p></span></span></div>
<div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; margin: 0in 0in 0.0001pt; text-align: justify;">
<span style="background-color: white; color: #2895f3;"><span style="font-family: "verdana" , sans-serif;"><a href="https://www.dol.gov/owcp/dlhwc/lscarrier.htm">https://www.dol.gov/owcp/dlhwc/lscarrier.htm</a></span></span><span style="background-color: white; font-family: "calibri light" , sans-serif;"><o:p></o:p></span></div>
<div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; margin: 0in 0in 0.0001pt; text-align: justify;">
<span style="background-color: white; color: #2895f3;"><br /></span></div>
<div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; margin: 0in 0in 0.0001pt;">
<div style="text-align: justify;">
<span style="background: rgb(255, 255, 255);"><span style="font-family: "verdana" , sans-serif;">To sum this all up, remind your Employers to verify that any and all
subcontractors hired are properly insured.</span></span><span style="background-color: white; font-family: "calibri light" , sans-serif;"><o:p></o:p></span></div>
</div>
<div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; margin: 0in 0in 0.0001pt;">
<span style="background: rgb(255, 255, 255);"><span style="font-family: "verdana" , sans-serif;"><br /></span></span></div>
<div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; margin: 0in 0in 0.0001pt;">
<span style="background: rgb(255, 255, 255);"><span style="font-family: "verdana" , sans-serif;"><br /></span></span></div>
<div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; margin: 0in 0in 0.0001pt;">
<span style="background: rgb(255, 255, 255);"><span style="font-family: "verdana" , sans-serif;"><br /></span></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsRGdzk9FvHfpvOvPfTwHMEIQwt9SjrqliIPEJkl-KmwmBPZituu2giGX6ahp4e5k7I8JXc2NTeh2Jbf05LQynx_OFS1BMmFBfogvhWROLAV09oPLfWLROxaopR9Z6K3qTyG_7GQVVJNM/s1600/Kristina+Cradyframe.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="278" data-original-width="232" height="113" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsRGdzk9FvHfpvOvPfTwHMEIQwt9SjrqliIPEJkl-KmwmBPZituu2giGX6ahp4e5k7I8JXc2NTeh2Jbf05LQynx_OFS1BMmFBfogvhWROLAV09oPLfWLROxaopR9Z6K3qTyG_7GQVVJNM/s200/Kristina+Cradyframe.png" width="100" /></a></div>
<div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; margin: 0in 0in 0.0001pt;">
<br />
<span style="background: rgb(255, 255, 255);"><span style="color: #666666; font-family: "verdana" , sans-serif;">Author</span></span><br />
<span style="background: rgb(255, 255, 255);"><span style="font-family: "verdana" , sans-serif;"><b>Kristina Crady, CMIP</b></span></span><br />
<span style="background: rgb(255, 255, 255);"><span style="font-family: "verdana" , sans-serif;">SafeShore Manager</span></span></div>
<br />LIG Marinehttp://www.blogger.com/profile/17983348178621527488noreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-50302759257316691802019-06-07T11:05:00.001-04:002019-06-07T11:05:54.767-04:00It’s raining, do you grab an umbrella or bumbershoot?<div class="MsoNormal">
We have all heard the varying terms for this coverage;
umbrella, marine umbrella, excess, bumbershoot, follow form excess. The real
question is what’s the difference? <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Good news: It can be very simple. Bad news: These coverage
names are used interchangeably, yet do not provide the same coverage. To make
matters more confusing carriers sometimes title the form one thing yet the
wording is for another. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Names aside, there are two main coverage forms used in
today’s marketplace: Umbrella and Follow Form Excess. These forms, while both
providing higher liability limits, have key differences that will help you
determine which one it is despite how it is titled. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Umbrella policies generally utilize manuscript wordings
which vary by carrier, and typically show a Self-Insured Retention (SIR). What is covered in the underlying is typically
covered in the umbrella, and what is not covered in the underlying <i>may </i>be covered in the umbrella. The latter
situation is what we refer to as a drop-down scenario and where an SIR comes
into play. Simplistically, if a claim arises that is excluded in the primary
but covered in the umbrella the insured would pay first dollar up to the SIR
amount, then the umbrella carrier would respond after SIR is satisfied. These
policies are routinely 40-60 pages with many terms and conditions, it can be a
difficult to work out what is and what is not covered.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Follow Form Excess policies are very straight forward,
carriers typically use American Institute of Marine Underwriters 8A Follow Form
Excess Clauses. There is no SIR or
drop-down clause associated with these policies. Whatever is included in the
underlying is included in the excess, and whatever is excluded in the
underlying is excluded in the excess. Think of this form more of a tower that
goes directly over the primary policy(ies) and literally only extends the limits
upwards. Traditionally follow form excess’ were used over a single coverage
line, now the trend is to use for multiple coverage lines due to its
simplicity. These policies are only
10-14 pages with lots of clarity on coverage and few, if any, additional
exclusions. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
It is vital that the primary policy(ies) is listed in the
Underlying Schedule, or else the excess policy <b>will not go over</b> it!<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<br />
<div class="MsoNormal">
Moral of the story: Ignore the title, you really do not know
what you have unless you read the form. Read. Read. Read. <o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-spacerun: yes;"><br /></span></div>
<div class="MsoNormal">
<div style="text-align: justify;">
<div class="separator" style="clear: both; text-align: center;">
</div>
<div style="text-align: left;">
</div>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZYAhZ2PdmuL1k91Hx-KjrlEtZwFSScODbIjd2w_ZYfVAETasFpP8kebHCrA7DPa7XZHmeZ1uxmSgx-18pMLUUqTkWM54ssMBzPYyBLNLf3StZRw6tKq4lWZZiOmKyEfjbcFaUbLA8ORo/s1600/lauranew+june19.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1600" data-original-width="1110" height="140" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZYAhZ2PdmuL1k91Hx-KjrlEtZwFSScODbIjd2w_ZYfVAETasFpP8kebHCrA7DPa7XZHmeZ1uxmSgx-18pMLUUqTkWM54ssMBzPYyBLNLf3StZRw6tKq4lWZZiOmKyEfjbcFaUbLA8ORo/s200/lauranew+june19.jpg" width="100" /></a><span style="font-family: "verdana" , sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="color: #999999; font-family: "verdana" , sans-serif;">Author</span></div>
<div style="text-align: justify;">
<span style="font-family: "verdana" , sans-serif;"><b>Laura Jay CMIP</b></span></div>
<div style="text-align: justify;">
<div style="text-align: left;">
<span style="font-family: "verdana" , sans-serif;">Custom Account Broker</span><br />
<div>
<span style="font-family: "verdana" , sans-serif;"><br /></span></div>
</div>
</div>
</div>
<br />Unknownnoreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-85535387292295477242019-04-23T14:51:00.000-04:002019-04-23T14:51:08.552-04:00HOW MUCH LIMIT IS ENOUGH ON YOUR BOAT YARD POLICIES?<br />
<div class="MsoHeader">
<br /></div>
<div class="MsoNormal">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Tahoma",sans-serif;">Axess</span></i><span style="font-family: "Tahoma",sans-serif;"> was a 31 ft. Rinker outfitted with Mercury engines that
was part of a fractional ownership program run by SailTime Chicago. The member
was an owner of the boat and allowed SailTime Chicago to rent out the vessel
when not in use. As part of the contract, SailTime was responsible for maintaining
<i style="mso-bidi-font-style: normal;">Axess</i>. SailTime relied upon Skyway
Yacht Works to perform these maintenance services. <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
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<span style="font-family: "Tahoma",sans-serif;">The vessel was
about seven miles offshore Chicago, IL when a clanking noise was heard. Shortly
thereafter the engines failed, and the boat came to an abrupt stop. The
high-water alarm sounded, and steam was coming out of the engine compartment.
They quickly discovered the boat was taking on water. All persons aboard the
vessel quickly went to work; two bailing water, one deploying emergency flares
and the fourth attempting to call for help. As they came to the realization
that the boat was going to sink, they knew they needed to abandon it. They put
on life vests, gathered up flotation cushions, and jumped into Lake Michigan’s
53° water. A male victim was found disoriented and hypothermic around 6 a.m. by
a charter boat captain. He was the only survivor. <o:p></o:p></span></div>
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<span style="font-family: "Tahoma",sans-serif;">Inspections of
the vessel by several experts determined that the boat sank because of a
catastrophic failure of the port side gimbal bearing. <i style="mso-bidi-font-style: normal;">Axess</i> was run aground by another SailTime Chicago member in 2012
and was taken to Skyway Yacht Works for inspection and repairs. The repairs
performed by Skyway did not include replacement of the port side gimbal
bearing. The product safety manager for Mercury Marine, the engine company,
stated that the safest and most prudent response would have been for Skyway to
replace the transom assembly and its components, including the gimbal bearing. An
expert witness stated that if Skyway had replaced the port side transom
assembly and gimbal bearing, the sinking of the <i style="mso-bidi-font-style: normal;">Axess</i> would not have occurred. <o:p></o:p></span></div>
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<span style="font-family: "Tahoma",sans-serif;">A <b style="mso-bidi-font-weight: normal;">$27.9 MILLION</b> settlement was reached.<o:p></o:p></span></div>
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<span style="font-family: "Tahoma",sans-serif;">How much
coverage do you recommend to your Boat Yard/Boat Repair clients?<o:p></o:p></span></div>
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<i style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px;"><span style="color: #3333cc; font-family: "brush script mt"; font-size: 36pt;">Ian Greenway</span></i></div>
<br />Unknownnoreply@blogger.comtag:blogger.com,1999:blog-1403766222453386383.post-30251794225073114872019-03-28T09:47:00.000-04:002019-03-28T09:47:54.075-04:00Is This Longshore….?<div class="MsoNormal">
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<span style="font-family: Arial, Helvetica, sans-serif;">Since sundown today, I have had three emails <b><i>“Is this Longshore….?”</i></b> In each case, the answer was probably no. This was an above average evening for such emails, but there are not too many days where there is not at least one. Whilst individual subjects vary, the result is the same. When we offer our opinion that something is probably NOT Longshore why should anyone purchase the coverage (or why should any agent recommend the coverage)?</span></div>
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<b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><span style="font-family: Arial, Helvetica, sans-serif;">#1 Defense Costs</span></span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Unlike a GL policy, in the WC world, no coverage = no defense. Regardless of whether we think the employee falls under Longshore, they can bring that claim. It is easy to spend six figures on legal fees even when we win!</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">To add Longshore on an IF ANY basis to most WC policies costs less than $250 and that provides unlimited defense costs coverage! What a bargain!</span></div>
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<b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><span style="font-family: Arial, Helvetica, sans-serif;">#2 Rogue Verdict</span></span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Longshore is constantly expanding, and what we consider not Longshore today, might become so in 3 years when today’s injury goes to trial. Or worse, a judge that just wants to find someone to pay!</span></div>
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<b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><span style="font-family: Arial, Helvetica, sans-serif;">#3 Uninsured Longshore Subcontractor</span></span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Many risks who might be excluded themselves, such as Marinas or Municipalities, hire Contractors or Subcontractors who work for them who have Longshore exposure but do not buy the right coverage. Under the Longshore act, that passes directly back to the principal, even though the principal might be excluded themselves! They need Longshore coverage! Even more obscure is the subcontractor who used a PEO/Leasing company for their employees but neglects to “name” a subset of their employees.</span></div>
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<b><span style="font-size: 12.0pt; mso-bidi-font-size: 11.0pt;"><span style="font-family: Arial, Helvetica, sans-serif;">#4 E&O prevention</span></span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">No further words needed.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Even when a risk is probably not Longshore, if the exposure is borderline, it's just not worth the risk of <i>not</i> covering Longshore (or Admiralty).</span></div>
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<i style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px;"><span style="color: #3333cc; font-family: "brush script mt"; font-size: 36pt;">Ian Greenway</span></i><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span><div class="MsoNormal">
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Unknownnoreply@blogger.com