MyYachtsInsurance - Yacht Insurance Community

Reviewed by Alex Short, Independent Yacht Insurance Risk Analyst

TL;DR

Medical payments coverage in yacht insurance policies, typically included in P&I or yacht-specific liability policies, covers medical expenses for injured crew members regardless of fault. This coverage applies to crew liability under the Jones Act [JONES-ACT] and Maritime Labour Convention, 2006 [MLC-2006], provided the injury occurs during active service and is not excluded by a policy’s “excluded activities” clause or “intoxication” exclusion. Coverage is triggered by a reportable injury event and voids if the incident results from willful misconduct or failure to comply with 46 CFR the corresponding regulatory requirements [USCG-CFR46-PT26] safety requirements.

Trigger Conditions

Trigger	Policy Impact	Consequence
Injury occurs during excluded activity	Medical payments clause	Coverage excluded
Injury results from intoxication	Intoxication exclusion clause	Coverage void
Injury caused by willful misconduct	Willful misconduct exclusion	Coverage void
Injury occurs during non-compliance with 46 CFR the corresponding regulatory requirements [USCG-CFR46-PT26]	Safety compliance clause	Coverage void
Injury reported after 30-day reporting period	Notice of claim clause	Coverage reduced or denied

Underwriter's Checklist

[Crew medical records]: Underwriters verify crew medical fitness and vaccination status to assess risk of onboard illness or injury, ensuring compliance with [46-CFR-10] and [MLC-2006] requirements for seafarer health and safety.
[Crew employment contracts]: Underwriters review crew employment agreements to confirm terms of medical coverage, including whether the vessel owner or a third party provides medical benefits, and to assess potential liability under [JONES-ACT] for maritime personal injury claims.
[Medical coverage certificates]: Underwriters confirm that the policy includes specific Medical Payments Coverage and that it aligns with the vessel’s operational area and crew size, ensuring compliance with [USCG-CFR46-PT26] for uninspected vessels.
[Vessel logbook entries]: Underwriters examine logbook entries for incidents involving crew medical emergencies to evaluate loss history and identify patterns that may indicate higher risk or inadequate onboard medical preparedness.
[Medical equipment inventory and maintenance logs]: Underwriters verify that the vessel is equipped with appropriate first-aid and emergency medical supplies, and that they are regularly maintained, in accordance with [ICOMIA-REFIT-STD-2021] and [USCG-CFR46-PT26].
[Crew training records]: Underwriters assess records of crew medical training, including CPR and first-aid certifications, to ensure compliance with [MLC-2006] and to reduce the likelihood of inadequate response to medical incidents.
[Vessel survey report]: Underwriters review the most recent survey report to confirm the condition of onboard medical facilities and equipment, ensuring they meet the standards outlined in [ICOMIA-REFIT-STD-2021] and [USCG-CFR46-PT26].
[Refit/modification records]: Underwriters check refit documentation to confirm that any changes to onboard medical facilities or equipment were completed in accordance with [ICOMIA-REFIT-STD-2021] and that they do not compromise the vessel’s safety or compliance status.

Policy Wording Traps

Clause Type	Trap Mechanism	Scenario	Coverage Result
Medical Payments Coverage	Contractors' exclusion	A yacht owner hires a third-party contractor to perform maintenance on the vessel. A crew member is injured during the work.	The policy excludes coverage for injuries caused by the contractor's operations, leaving the owner liable for medical costs [46-CFR-46-PT26] [MLC-2006].
Crew Liability Coverage	Wilful misconduct exclusion	A crew member intentionally causes harm to another crew member while under the influence of alcohol.	The policy excludes coverage for injuries resulting from wilful misconduct, leaving the owner without coverage for medical expenses [JONES-ACT] [FL-STAT-327].
General Average Contribution	Latent defect carve-out	A crew member is injured due to a hidden defect in the vessel's safety equipment that existed before the policy was issued.	The policy excludes coverage for injuries caused by latent defects, and the owner must bear the medical costs [YORK-ANTWERP-2016] [ICOMIA-REFIT-STD-2021].
Faulty Workmanship Exclusion	Faulty workmanship exclusion	A crew member is injured due to a poorly installed safety railing that failed during routine operations.	The policy excludes coverage for injuries caused by faulty workmanship, leaving the owner responsible for medical expenses [46-CFR-10] [46-CFR-46-PT26].
Material Change Warranty	Material change warranty	The owner modifies the yacht's layout without informing the insurer, and a crew member is injured due to the new configuration.	The policy excludes coverage for injuries resulting from unapproved material changes, leaving the owner liable for medical costs [USCG-CFR46-PT26] [MLC-2006].

Operational Reality

Yard operators frequently fail to document crew medical incidents promptly, leading to disputes over coverage under Medical Payments Coverage in yacht insurance policies. On the ground, crew injuries are often reported verbally to the captain or owner, with formal medical documentation delayed or omitted [MLC-2006]. This creates friction during claims processing, as underwriters require a completed Incident Report Form and attending physician’s statement within the policy notification period, typically aligned with the insurer’s internal deadlines. Surveyors are usually engaged post-incident to assess the nature and cause of injury, particularly if there is a question of negligence or compliance with safety standards [ICOMIA-REFIT-STD-2021]. Failure to secure a timely medical report can result in the underwriter denying coverage, citing incomplete documentation. Class societies may also require incident reports for vessels under their registry, especially if the injury relates to vessel operations or safety compliance [46-CFR-10]. Common mistakes include delaying medical documentation beyond the insurer’s acceptable timeframe or failing to involve the surveyor immediately after the incident. These errors can lead to claim rejection or reduced payout, as the underwriter may deem the incident not reportable under the policy’s terms. Additionally, if the crew member is a U.S. citizen and the incident occurs on a U.S. flagged vessel, the Jones Act may impose additional liability considerations [JONES-ACT].

Related Risks

Crew medical negligence → May conflict with Medical Payments Coverage if crew member is found liable under the Jones Act [JONES-ACT], necessitating separate crew liability coverage.
Emergency medical evacuation → Often excluded under standard Medical Payments Coverage unless specifically included, requiring coordination with Emergency Assistance Coverage provisions.
Onboard medical facilities compliance → Vessels must adhere to 46 CFR the corresponding regulatory requirements [USCG-CFR46-PT26] for uninspected vessels, impacting coverage validity if non-compliant during medical incidents.
General average contributions for medical costs → Medical expenses incurred during salvage operations may be subject to York-Antwerp Rules 2016 [YORK-ANTWERP-2016], affecting claim settlement under Medical Payments Coverage.

Questions for Your Broker

Does the policy specify coverage limits for medical payments related to crew injuries, and are these limits subject to sub-limits under 46 CFR the corresponding regulatory requirements: Operations (Uninspected Vessels) [USCG-CFR46-PT26]?
Are injuries sustained by crew members during vessel operations excluded under the policy, particularly in relation to the Jones Act [JONES-ACT] or Maritime Labour Convention, 2006 [MLC-2006]?
What are the required notification procedures for medical claims under the policy, and do they align with the documentation standards outlined in ICOMIA Superyacht Refit Standard 2021 [ICOMIA-REFIT-STD-2021]?
What specific documentation is required to substantiate a medical payment claim, including medical reports and incident logs, under CFR 33 [USCG-CFR33] and 46 CFR the corresponding regulatory requirements [46-CFR-10]?
Under what conditions does the deductible apply to medical expenses incurred by crew members, and is there a separate deductible for crew-related claims under the policy?
Does the policy require compliance with warranty clauses related to crew safety and medical provisions, and how do these align with the York-Antwerp Rules 2016 [YORK-ANTWERP-2016] and the Oil Pollution Act of 1990 [OPA-90]?

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
46 CFR the corresponding regulatory requirements: Operations (Uninspected Vessels) (legal) — https://www.ecfr.gov/current/title-46/chapter-I/subchapter-C/part-26
ICOMIA Superyacht Refit Standard 2021 (other) — https://www.icomia.org/icomia-superyacht-refit-group-2025/
FL Stat. 327 (legal) — http://www.leg.state.fl.us/statutes/
York-Antwerp Rules 2016 (General Average) (framework) — https://comitemaritime.org/wp-content/uploads/2018/06/2016-York-Antwerp-Rules-with-Rule-XVII-correction.pdf
CFR 33 (legal) — https://www.ecfr.gov/current/title-33
Oil Pollution Act of 1990 (legal) — https://www.govinfo.gov/content/pkg/COMPS-2991/pdf/COMPS-2991.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.

Medical Payments Coverage in Yacht Insurance Policies: Crew Liability Considerations