MyYachtsInsurance - Yacht Insurance Community

Reviewed by Alex Short, Independent Yacht Insurance Risk Analyst

TL;DR

Protection and indemnity (P&I) coverage in crew liability insurance is a policy type that protects vessel owners from legal liability arising from injuries to crew members and third parties. Coverage excludes claims arising from the owner’s intentional acts or violations of the Maritime Labour Convention, 2006 [MLC-2006]. The "care, custody, and control" exclusion typically limits coverage when the owner is directly responsible for the incident. Coverage triggers when a crew member files a claim under the Jones Act [JONES-ACT] or general maritime law.

Trigger Conditions

Trigger	Policy Impact	Consequence
Crew injury claim filed under Jones Act [JONES-ACT]	Crew Liability Coverage	Coverage triggers indemnity and defense
Owner violates MLC-2006 [MLC-2006] standards	Exclusion Clause	Coverage excluded for related claims
Crew member under care, custody, or control of owner during incident	Care, Custody, and Control Exclusion	Coverage void for owner-caused incidents
Refit or lay-up not notified within 10 days	Notice of Change Condition	Coverage may be void if not approved
Hot work conducted without insurer approval	Safety Compliance Clause	Coverage excluded for resulting injuries or damage

Underwriter's Checklist

[Crew Qualification Certificates]: Verify that all crew members hold valid Merchant Mariner Credentials (MMC) as required by 46 CFR the corresponding regulatory requirements [46-CFR-10], ensuring compliance with U.S. and international crewing standards.
[Medical Examination Reports]: Confirm that crew members have undergone recent medical evaluations to meet the health and fitness standards outlined in the Maritime Labour Convention, 2006 [MLC-2006].
[Crew Training Records]: Review training logs to ensure compliance with safety training requirements under 46 CFR the corresponding regulatory requirements [USCG-CFR46-PT26], particularly for uninspected vessels operating in domestic waters.
[Incident and Loss History Declarations]: Analyze prior claims and incident reports to assess risk exposure and determine the likelihood of future crew-related liability claims under P&I coverage.
[Refit and Modification Records]: Examine documentation of vessel modifications to ensure they align with the ICOMIA Superyacht Refit Standard 2021 [ICOMIA-REFIT-STD-2021], which impacts crew safety and operational risk.
[General Average Security Declarations]: Confirm that the vessel has appropriate general average security in place, consistent with the York-Antwerp Rules 2016 [YORK-ANTWERP-2016], to cover potential crew liabilities in salvage or casualty situations.
[Salvage Agreement Records]: Review salvage agreements to ensure compliance with the International Convention on Salvage 1989 [SALVAGE-CONV-1989], which may affect crew liability in the event of a salvage operation.
[Crew Contracts and Manning Agreements]: Verify that crew employment contracts meet the minimum standards under the Jones Act [JONES-ACT] and Florida Statute 327 [FL-STAT-327], which govern seamen’s rights and employer obligations.

Policy Wording Traps

Clause Type	Trap Mechanism	Scenario	Coverage Result
Crew Liability Exclusion	Excludes coverage for injuries arising from the crew's wilful misconduct	A crew member intentionally injures a fellow crew member during a dispute	Claim denied due to wilful misconduct exclusion
Contractors' Exclusion	Excludes coverage for injuries to third-party contractors not under the vessel's care, custody, and control	A contractor is injured while working on the vessel but is not under the vessel's direct supervision	Claim denied under contractors' exclusion
Consequential Damage Exclusion	Limits coverage to direct physical loss and excludes consequential losses	A crew member is injured, leading to a delay in voyage and loss of charter income	Claim denied for consequential damage
Latent Defect Carve-Out	Excludes coverage for injuries caused by latent defects in the vessel	A crew member is injured due to a hidden structural defect in the vessel	Claim denied due to latent defect exclusion
Material Change Warranty	Requires prior notice for any material change to the vessel's condition	A vessel undergoes a refit without informing the insurer, and a crew member is injured post-refit	Claim denied for breach of material change warranty [ICOMIA-REFIT-STD-2021]

Operational Reality

A common operational friction point in P&I coverage for crew liability insurance arises during the reporting and documentation of crew injuries sustained during vessel operations. On the ground, vessel operators or yards often delay or omit timely reporting of incidents, particularly in cases involving non-contractual crew or subcontracted labor, to avoid triggering claims or premium adjustments [MLC-2006]. This behavior can lead to underreporting or misclassification of incidents, which may later be challenged by underwriters or P&I clubs during claims processing. Documentation requirements include a completed Marine Casualty Report (MCR) under 46 CFR the corresponding regulatory requirements [USCG-CFR46-PT26], a medical report from a licensed physician, and a crew statement detailing the incident. These documents must be submitted to the underwriter or P&I club within the policy notification period, typically aligned with the timeframes outlined in the policy wording. Surveyors from the class society or P&I club may be called to inspect the vessel and assess the incident scene, particularly if there is a potential for general average or salvage implications under the York-Antwerp Rules 2016 [YORK-ANTWERP-2016]. Failure to secure timely surveyor involvement can result in claim denial or reduced coverage. Common mistakes include incomplete medical documentation, delayed notice to insurers, and failure to preserve the incident scene, which can lead to disputes over liability and coverage limits.

Related Risks

Crew injury during vessel operations → May trigger Jones Act liability claims [JONES-ACT] and require P&I coverage for medical and legal expenses
Negligence in crew employment practices → Could lead to Maritime Labour Convention (MLC) 2006 [MLC-2006] non-compliance claims and exclusion under P&I for labor law violations
Crew-induced pollution incidents → May overlap with Oil Pollution Act of 1990 [OPA-90] requirements and necessitate coordination between P&I and environmental liability coverage
General average contributions from crew-related incidents → Governed by York-Antwerp Rules 2016 [YORK-ANTWERP-2016] and may impact P&I claims for shared loss distribution

Questions for Your Broker

Does the P&I coverage provide sufficient limits for crew medical expenses, including repatriation costs, in compliance with the Maritime Labour Convention, 2006 [MLC-2006] and 46 CFR the corresponding regulatory requirements [46-CFR-10] requirements?
Are there specific exclusions in the policy for injuries resulting from a crew member’s intoxication or willful misconduct under the Jones Act [JONES-ACT] or 46 CFR the corresponding regulatory requirements [USCG-CFR46-PT26]?
What are the required timeframes and procedures for notifying the insurer of a crew liability claim under the York-Antwerp Rules 2016 [YORK-ANTWERP-2016] and the Oil Pollution Act of 1990 [OPA-90]?
What documentation must be provided to substantiate a claim for general average under the York-Antwerp Rules 2016 [YORK-ANTWERP-2016], particularly in cases involving crew injury?
Under what conditions does the deductible apply for claims arising from a crew member’s injury during vessel operations, and does it vary under 46 CFR the corresponding regulatory requirements [USCG-CFR46-PT26] or the Jones Act [JONES-ACT]?
Does the policy require compliance with warranties related to crew training and vessel safety under the ICOMIA Superyacht Refit Standard 2021 [ICOMIA-REFIT-STD-2021] and 46 CFR the corresponding regulatory requirements [46-CFR-10], and what are the consequences of non-compliance?

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.