MyYachtsInsurance - Yacht Insurance Community

Reviewed by Alex Short, Independent Yacht Insurance Risk Analyst

TL;DR

Crew member coverage in marine liability insurance is typically included in Protection and Indemnity (P&I) policies, covering injuries or legal liabilities arising from the vessel’s operation. Coverage is excluded if the injury results from the crew member’s intoxication, willful misconduct, or failure to hold valid Merchant Mariner Credentials [46-CFR-10]. Claims are void if the vessel operates in violation of the Jones Act [JONES-ACT] or fails to meet Maritime Labour Convention, 2006 [MLC-2006] standards.

Trigger Conditions

Trigger	Policy Impact	Consequence
Crew member injured due to intoxication	Exclusion under Crew Injury Coverage	Coverage excluded [46-CFR-10]
Crew member lacks valid Merchant Mariner Credential	Eligibility for coverage	Coverage denied [46-CFR-10]
Vessel operates in violation of Jones Act	Policy validity	Claim void [JONES-ACT]
Failure to meet Maritime Labour Convention standards	Compliance clause	Coverage void [MLC-2006]
Unauthorized hot work conducted onboard	Safety violation clause	Liability excluded

Underwriter's Checklist

[Crew Qualification Records]: Verify that all crew members hold valid Merchant Mariner Credentials (MMC) appropriate to their duties and vessel type, ensuring compliance with 46 CFR the corresponding regulatory requirements [46-CFR-10].
[Medical Fitness Certificates]: Confirm that each crew member has a valid medical certificate issued by an approved maritime authority, in accordance with the Maritime Labour Convention, 2006 [MLC-2006].
[Training and Competency Logs]: Review training records to ensure compliance with mandatory safety training, including STCW requirements, and that all crew members are trained in emergency procedures [46-CFR-10].
[Navigation Area Endorsements]: Check that crew members have endorsements for the specific navigation areas in which the vessel operates, particularly if transiting U.S. waters under the Jones Act [JONES-ACT].
[Crew Vetting and Background Checks]: Examine pre-employment screening records to ensure no history of drug use, criminal activity, or prior incidents that could increase liability risk [ICOMIA-REFIT-STD-2021].
[Crew Change Logs]: Review logs of crew changes to ensure proper documentation and continuity of coverage, especially during international voyages governed by the York-Antwerp Rules 2016 [YORK-ANTWERP-2016].
[Crew Injury and Incident Reports]: Analyze incident reports to identify patterns of crew-related claims, which may indicate training or safety deficiencies [OPA-90].
[Crew Manning Documents]: Confirm that the vessel is manned in accordance with the minimum crew requirements set by 46 CFR the corresponding regulatory requirements for uninspected vessels or applicable flag state regulations [USCG-CFR46-PT26].
[Crew Liability Exclusion Waivers]: Verify that any exclusions for crew-related injuries or claims are properly waived or covered under the policy, particularly in light of Jones Act protections [JONES-ACT].
[Crew Vessel Familiarization Records]: Ensure that all new crew members have completed vessel-specific familiarization training, including emergency systems and safety protocols [FL-STAT-327].

Policy Wording Traps

Clause Type	Trap Mechanism	Scenario	Coverage Result
Care, Custody, and Control	Excludes coverage for injuries sustained when the crew is not under the policyholder’s direct supervision	A crew member is injured while working on a subcontractor’s vessel during a refit under ICOMIA standards [ICOMIA-REFIT-STD-2021]	Claim denied due to lack of direct control by the policyholder
Contractors' Exclusion	Excludes coverage for third-party contractors and their employees	A crew member is injured by a contractor during a vessel overhaul [46-CFR-10]	Claim denied as the injury falls under the contractors' exclusion
Consequential Damage	Limits coverage to direct physical damage, excluding indirect losses	A crew member’s injury leads to a vessel being out of service for repairs under 46 CFR the corresponding regulatory requirements [USCG-CFR46-PT26]	Consequential loss of revenue not covered
Latent Defect Carve-Out	Excludes coverage for injuries caused by pre-existing, undetected vessel defects	A crew member is injured due to a faulty winch with a latent defect [YORK-ANTWERP-2016]	Claim denied due to the latent defect exclusion
Wilful Misconduct	Excludes coverage for injuries resulting from intentional or reckless acts	A crew member is injured after another crew member intentionally misused safety equipment [MLC-2006]	Claim denied due to wilful misconduct clause
Material Change Warranty	Requires prior notice for significant vessel modifications	A crew member is injured following an unauthorized engine upgrade [OPA-90]	Claim denied due to failure to notify insurer of material change

Operational Reality

Yard operators frequently fail to confirm that crew members aboard uninspected vessels meet the minimum safety and competency requirements under 46 CFR the corresponding regulatory requirements [USCG-CFR46-PT26], leading to coverage disputes under marine liability policies. Owners may assume that informal arrangements with local crews are sufficient, but underwriters typically require proof of compliance with the Merchant Mariner Credential standards outlined in 46 CFR the corresponding regulatory requirements [46-CFR-10]. Documentation must include crew manifests, competency certifications, and vessel operation logs, which are often incomplete or submitted after a claim arises. Surveyors from the class society or underwriter may inspect the vessel during a claim investigation, particularly if the crew’s qualifications are in question under the Jones Act [JONES-ACT]. This can delay claim processing and result in denied coverage if deficiencies are found. Common mistakes include failing to maintain updated crew records or not notifying the underwriter of crew changes, which violates policy notification requirements. Yard staff may also overlook the need for general average security under York-Antwerp Rules 2016 [YORK-ANTWERP-2016] when crew-related incidents lead to salvage or damage claims. These oversights can lead to financial liability for the owner, especially if the incident involves pollution under OPA-90 [OPA-90].

Related Risks

Crew injury or illness during voyage → May trigger medical evacuation and repatriation costs under crew member coverage, subject to compliance with MLC-2006 [MLC-2006] labor standards
Crew negligence leading to collision or grounding → Could invoke liability under Jones Act [JONES-ACT] and expose the vessel to third-party claims not fully covered under standard marine liability policies
Failure to secure proper Merchant Mariner Credentials → May void coverage under crew member provisions, as required by 46 CFR the corresponding regulatory requirements [46-CFR-10]
Crew involvement in salvage operations → Potential for general average adjustment under York-Antwerp Rules 2016 [YORK-ANTWERP-2016], which may impact liability coverage and claims settlement priorities

Questions for Your Broker

Does the policy provide coverage for medical expenses and repatriation costs for injured crew members under 46 CFR the corresponding regulatory requirements, and what are the applicable sub-limits for such claims [USCG-CFR46-PT26]?
Are injuries sustained by a crew member during a salvage operation excluded under the International Convention on Salvage 1989, and if so, which specific exclusion applies [SALVAGE-CONV-1989]?
What is the required time frame for notifying the insurer of a crew member injury or claim under the policy, and does it align with the reporting standards under the Oil Pollution Act of 1990 [OPA-90]?
What documentation is required to substantiate a claim for a crew member's injury, including medical reports and incident logs, in accordance with the Maritime Labour Convention, 2006 [MLC-2006]?
Under what conditions does the deductible apply for claims arising from a crew member's injury, particularly in cases involving general average under the York-Antwerp Rules 2016 [YORK-ANTWERP-2016]?
Does the policy require the vessel to maintain a valid Merchant Mariner Credential for all crew members as a warranty under 46 CFR the corresponding regulatory requirements, and what are the consequences of non-compliance [46-CFR-10]?

References

Jones Act (legal) — https://www.law.cornell.edu/uscode/text/46/subtitle-V/part-A
Maritime Labour Convention, 2006 (framework) — https://www.ilo.org/international-labour-standards/maritime-labour-convention-2006
ICOMIA Superyacht Refit Standard 2021 (other) — https://www.icomia.org/icomia-superyacht-refit-group-2025/
York-Antwerp Rules 2016 (General Average) (framework) — https://comitemaritime.org/wp-content/uploads/2018/06/2016-York-Antwerp-Rules-with-Rule-XVII-correction.pdf
Oil Pollution Act of 1990 (legal) — https://www.govinfo.gov/content/pkg/COMPS-2991/pdf/COMPS-2991.pdf
46 CFR the corresponding regulatory requirements: Operations (Uninspected Vessels) (legal) — https://www.ecfr.gov/current/title-46/chapter-I/subchapter-C/part-26
FL Stat. 327 (legal) — http://www.leg.state.fl.us/statutes/
International Convention on Salvage 1989 (legal) — https://www.dco.uscg.mil/Portals/9/CG-5R/nsarc/Convention%20-%20Salvage%20(1989).pdf

Disclosure

This content is provided for informational purposes only and does not constitute insurance advice. Coverage terms vary by policy, jurisdiction, and underwriter. Consult a licensed marine insurance broker for guidance specific to your vessel and operations.

Crew Member Coverage in Marine Liability Insurance