Workers’ Comp Isn’t Enough on the Water: What Every Operator Should Know
Running a watersports business isn’t just about creating unforgettable experiences for your guests — it’s also about protecting your company and the people who make those experiences possible: your employees and crew. Whether you operate jet ski rentals, boat tours, bareboat charters, or fishing trips, the risks your team faces on and around the water are unique. That’s why it’s important to make sure the insurance policies you carry match the realities of your operation.
Here are the key coverages every watersports operator should be familiar with:
1. Statutory Workers’ Compensation
This is the foundation of employee protection. It’s required by law and covers land-based injuries and illnesses. But for operators who spend significant time on or near the water, standard workers’ comp alone usually isn’t enough.
2. U.S. Longshore & Harbor Workers’ Compensation Act (USL&H)
If your employees work on docks, piers, marinas, or navigable waters — even part of the time — you may be responsible for providing USL&H coverage. It’s a federal requirement designed to protect maritime workers who don’t qualify as “seamen” under the Jones Act.
3. The Jones Act
For crew members who are regularly assigned to a vessel and contribute to its mission, the Jones Act provides powerful protections — and significant exposure for business owners. If a crewmember is injured, they can sue the employer for negligence. Having the right insurance in place is critical.
4. Marine Employers Liability (MEL)
Think of MEL as filling the gaps. It provides protection when your crew falls under maritime law (like the Jones Act), but your standard policies don’t respond. For any operator with vessels and crew, MEL should be on the table.
Why It Matters
Not having the appropriate coverage doesn’t just expose your business financially to uncovered losses, hefty fines, and penalties— it can leave your employees unprotected when they need it most. And because these policies overlap in complex ways, it’s not always clear which apply to your operation.
That’s where working with an advisor who understands both the insurance market and the realities of the watersports industry makes the difference.
My Advice to You
Don’t assume your current policies cover all scenarios. Each business is different — a jet ski rental stand on the beach has very different exposures than a charter fishing vessel or a bareboat rental company. The best step you can take is to review your operations with someone who knows the ins and outs of maritime coverage.
Bottom line: If your employees spend time on the water, you should be thinking about more than just standard workers’ comp. Let’s talk about how these coverages apply to your business and make sure your team — and your business — are fully protected.
