Jones Act Coverage Needed
by Company Owner?

Q

I insure a boat manufacturer. The owner of the company occasionally—perhaps two or three times a year—test drives boats on a river. The underwriter for this account's workers compensation coverage has threatened to cancel the coverage because she says we need to provide Jones Act coverage on it.

I disagree. Since he's the owner of the company and has not chosen to be covered under the Florida workers compensation law, I don't think the Jones Act would apply to him. Which of us is correct?

Florida Subscriber

A

You are correct. As we explain elsewhere in The FC&S Bulletins (See Longshore and Harbor Workers Compensation Act and the Jones Act. Print subscribers will find this on Workers Comp page A.3.), the Jones Act is a federal statute that provides recourse to seamen for injuries caused by negligent acts of the owner, master, or fellow crew members of a ship. The act allows such seamen to maintain an action directly against the owners of the ship. Since your insured is the owner, it is unlikely that the Jones Act would apply.

It also appears that this business owner would not fall under the U.S. Longshore and Harbor Workers Act, a federal law that is designed to provide workers compensation coverage for employees who fall outside the workers compensation law of the state. If he has not chosen to be covered under workers compensation, it is hard to imagine that the USL&HW act would apply.

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