Marine employer’s liability insurance is one of the trickiest parts of the insurance for oil field contractors as well as vessel operators.
This is the policy that will cover you in the event that one of the employees gets injured while working and decides to put the blame on the nature of work or the conditions at work. The employee is offshore and hence you will be at a risk to these kinds of claim.
There are many countries in which marine employers liability insurance has become a compulsion. In the countries wherein this kind of insurance is not a compulsion it has been seen that lot of small companies have become bankrupt at the time claims are made against them.
Usually oil field contractors as well as vessel operators are the business owners that have the marine employed staff will consider to take up marine employer’s liability insurance. There are many companies who would like to work only with the companies that have this kind of insurance. This makes this kind of insurance even more important for you.
Oil field contractors
Low risk for marine employer’s liability will be taken into account when the contractor will send employees offshore to platforms. Although the employees are traveling through the vessel it will be considered that at the time of accident the only remedy that would be helpful would be Workers Compensation. However this will not stop the injured employee from claiming the damages you.
The risk will increase more if your employees are working over the vessel or floating units. This is because an injured employee possesses a great chance to prove seaman status and this is when you will again need marine employer’s liability insurance.
When you ask the companies for quotes of this kind of insurance the company will have a close look at the details submitted. The main reason behind this is that it is related to the over water work as well as commensurate payroll. This information is very important and this should not be misinformed. This can lead to disclamation of the claims at the time company looks into application form as the basis of the coverage. In case the information is misleading then declination of coverage can easily take place. Hence it is essential that the application forms of the insurance are studied well prior to singing in.