Page 26: of Marine News Magazine (April 2016)

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COLUMN INSURANCE

Manage and Mitigate Risk on the Water

Strengthening Your Marine Insurance

By Tracy Markowski

Early in the morning on August 29, also resulting in less ice formation. Ice typically provides 2005, Hurricane Katrina struck the a helpful barrier between the lakes and the shoreline and

Golf Coast of the United States. Hurri- without its protection; shores and fragile wetlands are cane Katrina was the worst insured loss more vulnerable to the wind and waves. event in the history of insurance any- Workboat and brown water vessel owners need to make where in the world. It was bigger than sure their insurance covers damages caused by winter 9/11. It was bigger than the earthquake weather conditions. The vessel owners’ protection and and tsunami in Japan. Hundreds of indemnity policy generally provides for the owners’ cargo thousands of people in Louisiana, Mis- legal liability, collision with other vessels and potentially

Markowski sissippi and Alabama were displaced piers, docks, jetties and other ? xed or ? oating objects. from their homes. Barges were picked up by the waves and Additional coverage that a workboat owner should con- slammed onto shore, while some were moved so far inland sider is charterer’s legal liability. This is coverage for dam- that they ended up on top of freeways. Levees broke and age arising out of loading or unloading in unsafe berth or ? ooded the streets, causing nearly 80 percent of the city to wharf conditions. The vessel owner should discuss with be under water. Experts estimate that Katrina caused more their broker getting the most coverage from their policy than $100 billion in property damage alone. for all possible scenarios that may occur due to increased

Hurricane Katrina is an extreme example of disastrous stormy environments.

effects that severe weather conditions can have on many The other potential liability resulting from unsafe con- things and in particular on the marine industry. But Ka- ditions that workboat owners need to be aware of is the trina is not the only example. In the midst of winter, El increased risk of workman injury. Freezing temperatures

Nino is proving to be the strongest on record. Workboat cause workboats and docks to ice over, leaving workmen owners need to be thinking about winterizing their insur- vulnerable to slips and falls. Workboat owners should be ance programs to protect themselves against costly dam- salting docks and decks to help prevent injury and should ages. As weather patterns begin to ? uctuate, workplace be requiring their workmen to wear proper footwear. Ad- hazards increase, especially on a workboat. High winds de- ditionally, workboat owners should also be aware of their stroy ships, storms and hurricanes cause ? ooding, and icy crewmen’s rights. These rights fall under The Jones Act and docks put workers at an increased risk for injury. Regard- the United States Longshore and Harbor Workers Com- less of the size of the storm, dangerous weather conditions pensation Act (the USL&H). can have negative affects for workboat owners and seamen. The Jones Act, otherwise known as the Merchant Ma-

Among the unforgiving effects that weather can have on rine Act, allows injured sailors to make claims and collect a vessel, the ? rst is property damage. Harsh winds and from their employers for the negligence of the ship own- rain cause docks to erode and equipment to wear down. er, captain or fellow member of the crew which, resulted

Storms and melting snow cause ocean water to rise, leading in injury. Workboat owners also need to be aware of the to potential ? ooded docks and vessels. USL&H. The act applies to workers on the barge or har-

This year’s El Nino is having an opposite yet similarly bor, or any other maritime employees. It can create liability devastating effect on the Great Lakes. Climate patterns on the part of the barge owner for injury or death resulting have caused water temperatures in this region to increase. from an accident occurring on the navigable waters of the

Warmer water is causing evaporation and subsequently, United States. Workboat owners need to make sure their low water levels. Cargo carriers aren’t able to transport as insurance policy covers potential liability under either the much as they usually do – with some having to shed more Jones Act or the USL&H, in case icy conditions result in than 10,000 tons of cargo. Warm water temperatures are crewman harm.

April 2016

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