Large Vessel Longshore Requirement General Guide

Despite all the information and publicity, there is still a significant amount of confusion on who requires Longshore in the large/mega yacht repair/service market, particularly in South Florida.   The 2009 changes to the longshore act, were largely trumped by the 2012 regulations and whilst there are some minor difference this can serve as a general guide

• People, repairing or servicing in ANY way any of the following types of vessels ARE Longshore
      o Skippered Charter boats of any size (from a “6-PACK” sport fisher to a super yacht that is chartered)
      o Bareboat charter boats if they have a capacity of 12 or more passengers
      o Commercial or Military vessels
• EVEN IF
      o They have a filed state act exception (they don’t apply to longshore)
      o They are an owner/operator
• If any of these people do not carry Longshore coverage, the yard, marina or person that hired them would be responsible for their Longshore benefits EVEN IF the yard or marina does not have the coverage

There are slightly different rules for builders/manufacturers.

Need to know more?   See our Recreational Vessels and Longshore video at Recreational Vessels and Longshore Video

YOU Are Invited!

By Karen Tischler, CMIP Education Events
February 24, 2015

Hey All Insurance Professionals!

Just wanted to invite you to our upcoming education event, the CMIP Insuring Waterfront Businesses Seminar, and for You CMIP Designation Graduates we are hosting a CMIP Graduate Seminar with Conferment Ceremony at this event!  The seminars will be held this April 20-21, 2015 at the Renaissance Ft. Lauderdale Cruise Port Hotel.

This dynamic Waterfront Business seminar delves deep into the exposures specific to waterfront businesses and provides practical “how to” guides on properly insuring them.  Topics include an in-depth overview of Marine General Liabilities, Third Party Liability for Marine Entities, Major Exclusions and Limitations from Non-Marine CGL Forms; Collision and Towers Liability Form including typical structures and E&O Issues due to Erosion of Limits; and concludes with the tricky issues of Care Custody and Control (CCC) Exposures including Ship Repairers Legal Liability, Terminal Operators Legal Liability, Stevedores Legal Liability, Wharfingers Legal Liability, Tankermans Legal Liability, and Charterers Legal Liability. Now that’s a lot of business knowledge packed into two days!

Graduates Courses are designed specifically for CMIP Graduates, providing them with an added depth understanding of these topics: Understanding Lloyd’s, Mutuals and P&I Clubs, Advanced Commercial Marine, Advanced Maritime Insurance.  In addition, Graduates have the option of attending any section of interest being presented at the "Insuring Waterfront Businesses Seminar” during this event.

This seminar event is a great opportunity to broadening your expertise and network with others in your industry, as insurance professionals from all levels, Agents, Underwriters, Human Resources, Administrative, and Management will be in attendance!

Visit IIMIS.org to register; don’t delay as Group Rates fill fast and Early Bird Registration ends soon!  We look forward to welcoming you at this multifaceted education event!  See you there!

Heart Condition Not Covered by Jones Act

William C. SKYE v. MAERSK LINE 2014 - William Skye, formerly the chief mate of the Sealand Pride, suffers from left ventricular hypertrophy, which he complained that his employer, Maersk Lines, caused when it saddled him with “excessive duties and duty time” such that he was “overworked to the point of fatigue.” At trial, the jury found Maersk liable and found damages of $2,362,299.  

Between 2000 and 2008, William Skye worked on the Sealand Pride as chief mate. Skye's job duties required him to work overtime, which adversely affected his health because of fatigue, stress, and lack of sleep. Skye regularly worked between 90 and 105 hours per week for 70 or 84 days at a time. At sea, Skye worked 12 hours; in port, he might have worked “round the clock.”

By 2008, Skye's cardiologist concluded that Skye's “continued physical stress related to his job, with long hours and lack of sleep” caused his labile hypertension—intermittent high blood pressure while on the job—which, in turn, caused his left ventricular hypertrophy.

The Jones Act does not allow seaman to recover for injuries caused by work-related stress because work-related stress is not a “physical peril, and as such the jury verdict was reversed on appeal and MAERSK were not found  NOT LIABLE.

Is this the Record Admiralty Award?

An oil rig worker won a $16.7 million final judgment issued Jan. 9, 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.

Tillman sued Hercules Offshore Services, his former employer, and its parent company under the Jones Act, & for Maintenance and Cure.  Tillman alleged that the rig on which he worked had unsanitary conditions and that those conditions led to his ailments.  Tillman’s claims against the corporate defendants included: negligence, unseaworthiness of vessel and failure to pay for a seaman’s maintenance and cure.

On Oct. 14, 2014, after a nearly three-week trial, the jury issued a $17.5 million verdict that included $6 million in damages for past and future mental anguish and the additional $2 million in punitive damages.  The judge, when calculating his final judgment, figured in salary offsets to defendants’ advantage that both sides had stipulated to during the trail.

For more information please see: http://www.texaslawyer.com/id=1202715208429/Litigator-of-the-Week-167-Million-Final-Judgment-in-Jones-Act-Case#ixzz3QXDBDyp8

John Chamberlin

I am sorry to report the passing of John Chamberlin, January 2nd 2015.    John was a  long time member of Signal Administration from its early years before moving on to a position in the Department of Labor’s longshore division in Washington.   He retired a few years ago but started his own consulting company.


I had the pleasure to work with John in all three of those positions, he was a true gentleman and always gave everyone a fair hearing.


He will be greatly missed.



-Ian Greenway

Another Claim of Record Jones Act Award?

A native of Puerto Rico was recently awarded a record $7.5 million settlement in a back and neck injury lawsuit following the sudden explosion of an air tank aboard a marine vessel that was docked for repairs. Plaintiff Edward Perez-Mossetty was seriously injured in the explosion.  The then-37-year-old was affecting repairs aboard the vessel on behalf of defendants American Tugs Inc. The plaintiff was in the engine room that also housed an aging air tank that was exhibiting signs of thinning and pitting.

According to court records in the back injury compensation claim, the tank had been installed without a working pressure relief valve and was normally operated in an automated fashion, with the air compressor automatically shutting down when the desired pressure within the tank was reached.  However, on the day of the accident, employees had been operating the compressor in manual mode as the compressor had been shutting off too soon. The pressure within the tank had built up to a level that the pitted walls of the tank could not withstand. The ensuing explosion  caused Perez-Mossetty to be thrown into the air. He landed on his neck and sustained serious back and neck injuries from which, in spite of surgical intervention and months of rehabilitative treatment, he has failed to fully recover.

Perez-Mossetty suffered a serious neck injury when he landed after being thrown into the air from the explosion. The plaintiff suffered partial paralysis and serious motor and sensory impairments. He requires assistance to walk and to maintain daily activities. Perez-Mossetty also remains in constant pain and will require assistive devices and ongoing medical care and treatment going forward for as long as he remains alive. He can no longer work.

Despite the claim of a record award, this blog reported back in October 2013 of an award of $9.6 mil   http://blog.ligmarine.com/2013/10/is-96-mil-record-award.html so whilst this may not be “THE” record, it certainly worth notice and serves to reinforce that $1mil of P&I/crew coverage is just not enough today (see http://ligblog.ligmarine.com/2014/06/are-current-pi-limits-enough/ )

New Seaman Status Test in 5th Circuit

On March 10, 2014, the United States Fifth Circuit Court of Appeals upheld that a land-based vessel repair supervisor was entitled to status as a Jones Act seaman. Elevating Boats, LLC operates 26-30 lift boats out of Houma, Louisiana. Larry Naquin, Sr., a vessel repair supervisor was seriously injured while testing one of the shipyard cranes at the shipyard. In the decision Naquin was able to recover under the Jones Act even though:

• Naquin rarely spent the night aboard a vessel;
• He was a shore-based repair supervisor who worked at a shipyard
• The vessels where Naquin worked were ordinarily docked; and
• Naquin never ventured out into the immediate canal area or onto open sea. Seaman status used the two-prong test from Chandris v. Latsis.

A worker must prove that :

1. his job contributes to the function of the vessel or accomplishment of its mission
2. that his connection to a vessel in navigation is substantial in duration and nature.

In this case the court quickly determined that Naquin spent 70% of his time repairing and operating cranes and other equipment aboard the lift boats (even though it was at the dock), Naquin could satisfy the requirement.