10
MARINE TECHNICIANTODAY | SUMMER 2015
COVER YOUR ASSETS
that AMTECH members could rely upon and
that is the Federal Compensation Act does
not apply to those engaged in the “repair
of recreational vessels.” However, that
then means if you perform any commercial
vessel repair you might be subject to the
Federal Longshore Act, and the definition
of a commercial vessel is very broad.
For example, repairing an outboard for a
pontoon boat that is used on navigable
waters to transport passengers or one
that is rented to tourists is considered
“commercial” repair. Also, repairing the
engine on a 6-pack fishing charter boat is
commercial repair, even if the boat has all
the characteristics of a recreational vessel.
Once it is used for any form of commerce,
you are repairing a commercial vessel and
might be subject to the Longshore Act.
Now back to “situs,” or where you are. If that
same rented pontoon boat or 6-pack fishing
charter boat is being used on a landlocked
lake, then that is not navigable water. You, the
employee, did not pass both tests. Therefore
you, the employer, may only be obligated to
provide state Work Comp benefits. However,
what about a lake that borders two states?
You guessed it, that is considered US
navigable water and now you have a Federal
Act benefit exposure if you are performing any
commercial repairs on or adjacent to that lake.
With so much gray area, every marine repair
situation is going to be different depending
upon, 1. Where you are, and 2. What kind
of work you are performing. As a marine
technician, performing work on, or adjoining
navigable waters you may need to be
concerned with both Worker’s Compensation
for whatever state you are performing work
in, but you must also be aware of federal
obligations under the Longshore and Harbor
Worker’s Compensation Act. Before accepting
any job, you should have a conversation with
an insurance agent experienced in maritime
insurance, including maritime employment
coverage. The fines and penalties (and
possible imprisonment) for failure to provide
benefits under either the state (WC) or federal
(LSHW) acts can be substantial.
Always be aware of your legal insurance
obligations and handle them properly to
avoid possibly catastrophic damage to your
business and personal finances.
James Kay, CIC, CRM is President of Stafford
& Co Insurance, the endorsed Insurance
Professionals for AMTECH. Reach them at
