Navigating Health Insurance for Yacht Crew

What yacht crew need to know about their health insurance entitlements.

Yachting is physically and mentally demanding. While crew take pride in maintaining the vessels, many overlook their health. Understanding your health insurance entitlements is essential for routine care but also to protect yourself in case of injury or illness. 

Capt. Herbert Magney has long advocated for crew health benefits to reduce liability risks on board. He is also a strong supporter of self-protection — he believes all crew should have health coverage. Health insurance is typically a job benefit in the United States, and most crewmembers will receive coverage with a new position. However, this coverage is not mandatory for vessels in the U.S.  

Oleg Otten, an attorney at VLAC Law in Miami, shared that the Maritime Labour Convention (MLC), 2006 establishes an international framework for crew rights and requires each member to create regulations that hold shipowners accountable for protecting seafarers’ health and providing medical care. The United Kingdom and its territories (including the Cayman Islands), the Bahamas, and the Marshall Islands are signatories of the MLC and, as such, are bound to offer protection to crew on their vessels. 

While the U.S. is not a signatory to the MLC and therefore does not adhere to the Convention, Otten explained that U.S. vessels operating in MLC jurisdictions must comply with the area’s regulations. 

In the U.S., the Jones Act provides legal protection for seafarers injured while working on qualifying vessels. However, this law focuses on liability and compensation for work-related injuries rather than routine health coverage. Although a vessel has a “duty of care” toward injured crew, this does not replace a health insurance policy. 

Most yachts provide group health insurance coverage, according to Clayton Swart of MHG. Full-time crew will likely be offered coverage, usually paid in whole or in part by the vessel’s owner. 

Your crew contract or employment agreement is the foundation for your rights. “It’s best when [your health insurance entitlements] are included in the contract or Seafarer Employment Agreement because that’s the simplest way to identify any gaps,” Otten said. He explains that all job specifics, including health insurance coverage, plan details, who pays the premium, rotation coverage, repatriation, what happens if crew become sick or injured on the job, long-term disability benefits, and any coverage exclusions, should be clearly outlined before you sign. You should also make sure the contract spells out any particular job duties that could be viewed as risky are covered in your policy. Make sure that the policy covers you if you’re traveling internationally as well.

The captain should be familiar with all insurance details, so they should address any questions. Health insurance, especially in the U.S., can be complex, particularly if navigating it for the first time. Crew should know who holds their policy and how to access care, what’s necessary to get treatment, where to go, and how to file a claim. If you have coverage questions that the captain or head of department can’t answer, contact the insurance provider.  

Freelance crew

Magney advises freelancers to carry their own policy, even if it’s just travel insurance. “If you’re not covered, you’re running around completely exposed,” he said. 

As a freelancer, you may not automatically receive coverage from a vessel. Swart notes that MHG typically creates temporary or standalone insurance policies for the vessel for freelance or short-term hires. This does not affect the boat’s main policy while still protecting freelancers. Sign only when you understand all coverage details and exclusions. 

Rotational crew

Since rotational crew are still employed by the vessel at home, the vessel’s health insurance policy should cover them ashore. Again, make sure to check this is defined in the policy and check for other limitations. Depending on the policy, crew might be prohibited from taking on other work during their rotational leave. 

Magney said rotational coverage is beneficial for captains — rotational crew can arrange medical appointments ashore on rotation, freeing work time when they return to the boat. 

Document

If you’re ever injured on board, report it immediately and seek treatment, even if it seems minor. Document everything. The vessel should record the injury, so have your department head and captain report the incident. Magney advises including verification of the time, incident, and scope. If needed, contact authorities ashore to ensure the incident is fully documented. Don’t be shy to take photos and gather witness statements. 

Otten also recommends collecting copies of all medical reports and bills related to treatment from the doctor. “It’s definitely very important [to document] because it affects not only health insurance benefits but also accident insurance or other types of insurance that the employer has, like worker’s compensation,” Otten said.  

A paper trail is crucial evidence if crew need to pursue claims or get medical coverage later. 

Learn your limitations

Both Otten and Magney shared that many vessels enforce strict zero-tolerance policies regarding alcohol and drugs. If an injury occurs while under the influence, your health coverage could be voided. Additionally, some contracts specify that injuries resulting from “reckless behavior” may not be covered, so it’s crucial to understand these limitations before signing.

According to Otten, the Marshall Islands contract stipulates that crew will not be entitled to compensation if an injury is determined to be your fault or results from misconduct. It also states that if your illness or injury stems from a condition that was intentionally concealed before your hiring, they may not have to compensate you. These provisions are typically included in your employment contract, but make sure.  

Overall, it’s key to fully understand employment terms, and any limitations and requirements should be in the contract. If not, it might be time to reevaluate the job.