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Mark Bononi Insurance Q&A MHG Insurance Brokers, headquartered in Fort Lauderdale, provides yacht crew health insurance plans designed specifically to meet the needs of today’s global yachting industry. In this week’s blog MHG Insurance Brokers Mark Bononi, director of the company’s Yacht Division, answers questions related to yacht crew insurance. 

 

Q: In addition to yacht crew health insurance, what other types of insurance should I be considering? 

A: It’s also important to consider having life insurance and a disability income plan. Life insurance is designed with your loved ones in mind and plays an important role in your overall financial plan. In the event of your death, beneficiaries can be comforted knowing that they have time to re-adjust their standard of living, can pay off debts or other expenses or provide for their children's education. Having a disability income plan is equally important. A disability income plan can offer you peace of mind knowing a significant portion of your income can be replaced in the event of an unfortunate accident or sickness. Unfortunately, we have all heard or read about the tragic stories of a crewmember who suffered a debilitating injury or illness which forced them to leave the yacht and were unable to return to work for an extended period of time. It is also important to be prepared for the less serious injuries that could also keep you off work such as a broken ankle or severe knee injury. If you’re in between yachts or do not need to purchase a full-time health insurance plan, there are short term health insurance solutions that we can help you with as well. 

Q: Do yacht crew health insurance plans cover typical water sports activities like scuba diving?

A: Yes, but as with all insurance policies, there are exclusions and limitations so it is important to check policies carefully if you intend to participate in these activities. Normally, water skiing, jet skiing and winter sports are covered under most yacht crew health insurance plans, but there are still some policies where winter sports are excluded, so you need to review the coverage and ask questions.

Q: Is emergency medical evacuation standard in most plans? 

A: Yes.  However, the circumstances where an evacuation can be performed will vary from plan to plan. Normally, a medical evacuation requires you to be either at risk for loss of life or limb in the opinion of the attending physician, and that there are inadequate medical facilities to treat you. Evacuation is to the nearest facility able to provide the necessary treatment. 

Q: What are the eligibility requirements to sign up for a yacht crew insurance plan? 

A: Generally, you must be a full-time yacht crew member or reasonably expect to be working on a yacht as your primary means of income. Also, medical history can determine what type of insurance you may need, or what plans you may be eligible for. 

Q: What happens to my plan after I leave yachting?

A: In most cases, you will need to find an alternative solution when you return home. It’s important to discuss your current needs and future plans with your insurance specialist when selecting a health insurance plan. A yacht crew health insurance plan may not always be the right solution for you if you’re looking to keep the plan for the long-term. 

Q: As a U.S. citizen I am now required to have health insurance. Do yacht crew insurance plans satisfy this requirement?

A: Currently, there are no individual yacht crew policies which satisfy this requirement. However, MHG is an approved Affordable Healthcare Act (ACA) insurance agency and our team can answer all of your questions and help you find the right US health insurance plan based on your needs and budget. Open enrollment for coverage effective Jan. 1, 2015, begins Nov. 15, 2014.  However, if you’re looking for coverage now, a short-term health insurance plan may be a good interim solution. 

Q: What factors should I consider when selecting a yacht crew health insurance plan?

A: When selecting a yacht crew health insurance plan you should consider your itinerary, medical history, budget and your future plans. If you’re looking for specific coverage such as dependent or maternity coverage or coverage for a specific winter or water sports activity, that should be a consideration as well. 

Q: Am I covered by the yacht owner?

A: Yes, indirectly. However, the yacht owner’s insurance is not your insurance. Also keep in mind that the owner’s insurance and liability does not necessarily extend coverage to you when you are off the vessel or on vacation.  There may be other restrictions and limitations as well, which can create large gaps in your coverage. When you incur medical expenses, doctors and hospitals will hold you responsible for payment, not the vessel owner. 

Q: What other services are included with insurance policies?

A: In addition to your coverage, many insurance plans offer additional assistance such as help with lost luggage, lost passports, health alerts, and safety and security notices. Our Insurance Specialists will be able to tell you more once you start discussing individual plans that are suited to your needs.

Q: Do I always have to pay at time of service and apply for reimbursement?

A: Not always. Most insurance carriers are happy to work directly with doctors and hospitals. However, in many cases, especially for smaller claim amounts, the doctor or hospital will require payment upfront. The key to successful direct billing is to establish communication between the doctor and the insurance carrier as early as possible before treatment. We’re of course happy to help with this. 

We know that dealing with insurance can be complicated. Insurance has its own language and attempting to evaluate all of the information on your own can be overwhelming. At MHG, we have the experience and resources to help you select the best solution for your particular circumstances, coverage requirements and budget. Once you purchase a policy we will continue to assist you with questions about your policy, details about the coverage it provides and throughout the claims process. Whether you are purchasing a plan for the first time, already have a plan in place and are looking for a more affordable alternative or, simply looking for better coverage, let us know, we would be happy to help.   

To learn more about yacht crew health insurance for groups, individuals or fleets call us at +1 954 828 1819 or +44 (0) 1624 678668 or visit us online at mhginsurance.com  

Insurance Q&A With Mark Bononi

Whether you are a boat dealer, marina operator or own a yacht detailing company, you have unique needs and requirements when it comes to liability protection.  These requirements help protect your business against any lawsuits stemming from business operations. This is where the decision to obtain a Marine General Liability policy vs. a General Liability policy comes into play. People tend to lean towards a General Liability policy because it has a cheaper cost; unfortunately, because of numerous exclusions involved in a General Liability policy, the insured usually isn’t covered in the areas needed. Here are some additional helpful facts and tips about these two policy types:

    • Learn the truth about General Liability – Did you know that a generic General Liability policy does not include watercraft coverage, including “the ownership, maintenance, and use of” watercraft owned or operated by you, the insured? Perhaps you would naturally assume this is covered – which brings up the fact that an experienced insurance broker could help you when it comes to the specifics of policy exclusions and/or benefits.
 
    • Who the exclusions affect – Exclusions can affect a wide variety of people, but for the purpose of this post let’s specifically talk about boat dealers, marina operators, etc. If you fall into any of those categories, then you are aware of the frequent operation of watercraft that takes place in your business. Operations, such as employees operating boats, or doing any type of test or demo drives for a customer are also excluded under a General Liability policy. If anything happens during these types of “operations”, you are left vulnerable and uninsured.
 
    • Another Interesting Exclusion – If you are considering purchasing an unendorsed General Liability policy, consider this: the “care, custody or control” of personal property of others is also excluded, meaning additional operations like boat repair, storing, hauling, fueling, launching and slip rentals are also uncovered.
 
  • Part Installers Beware – Perhaps you are a boat dealer who also installs aftermarket equipment or parts on boats. Unendorsed General Liability policies contain a “your work and product” exclusion, meaning any claim related to the installation of your aftermarket part is also not included.
The bottom line is most General Liability policies exclude any work done on the water or vessels, while specifically obtaining a Marine Liability policy will cover you for any damages or liability to a third person engaged in marine operations. Remember, cruise lines and marinas require proof of appropriate insurance coverage before any job can begin, so make sure you have the right policy in hand. To learn more about the advantages of Marine General Liability coverage, contact an MHG broker today by visiting MHG Insurance Brokers or calling 954-828-1819.

Regulatory Changes Affect Captains And CrewIt is often said that, “The only constant in life is change.” This statement could not be more appropriate with the changes that are happening regarding health insurance and the superyacht industry. Between Health Care Reform and the Maritime Labour Convention, 2006 (MLC) coming into effect soon, now is the time for yacht captains and crew to learn about regulatory changes taking place and how they can best protect themselves. 

 

Mark Bononi, MHG Insurance Brokers’ Yacht Division Director, is featured in this month’s issue of Dockwalk, the premier magazine for superyacht captains and crew. He speaks candidly about this specific issue and offers pertinent advice for those in the industry. For starters, let us begin with the MLC, which will be going into effect on August 20, 2013. If you have assumed the MLC will make the vessel owner responsible to take care of all your health and medical insurance needs, this is simply not the case. 

The MLC is basically designed as a minimum standard for the commercial shipping world and does not mean individual yacht crewmembers will be adequately protected. Bononi shares that the MLC going into effect really does not change much regarding coverage. He explains that the “MLC states that each vessel owner is liable for crew medical costs.” However, the MLC does not spell this out clearly, stating the yacht owner must provide “financial security” to cover death, repatriation or long-term disability costs. Bononi then asks, how will this “financial security” be proven? It will most likely be subject to interpretation by each individual port state inspector. Proof might come in the form of providing health insurance, or having money in an escrow account, or in another manner…either way, it is not clearly stated. 

In addition, many insurance policies offered by a yacht owner do not include all-encompassing health care for yacht crewmembers. Bononi stresses the point that this is where the responsibility ultimately falls on the crewmember to make sure their medical and health insurance needs are met, and how a separate medical policy can offer added protection and peace of mind. When it comes to Health Care Reform, Americans who work as yacht crewmembers are currently playing the waiting game. Do not assume that not residing in the U.S. the majority of the year removes your requirement to pay for health insurance or be subject to a tax. Currently, the rules around residency and time periods for residing outside of the U.S. are vague at best. This makes it difficult for yacht crewmembers to plan for their health insurance needs. 

Staying in contact with an experienced yacht insurance broker, such as MHG, is imperative, as they will keep abreast of all regulatory changes that are happening regarding the MLC and Health Care Reform. Bononi states that it really boils down to each individual crew member getting adequate coverage for themselves that meets their specific needs, even if this comes in the form of an additional policy over what the yacht owner provides. 

His other important piece of advice is not to wait: “Health insurance only gets more expensive the older you get, so getting on board early with a comprehensive health policy can help with future costs.” Bononi’s full interview is available in the August issue of Dockwalk magazine. 

If you are a yacht crewmember seeking to learn more about health insurance options available to you, call MHG today and let a skilled representative explain more regarding the MLC and Health Care Reform. MHG Insurance Brokers can also provide you with numerous quotes from top-rated insurance companies who offer policies that meet your budget and individual needs. Call MHG today at 954-828-1819 or learn more by visiting www.MHGInsurance.com

How Upcoming Regulatory Changes Might Affect Captains and Crew

Maritime Labour ConventionFor those of us who have heard the term MLC mentioned over the past few years and not really paid too much attention, the time has come to finally raise our hands and ask “What is MLC?”  Not only because it concerns every owner, manager, Captain and crew member that owns, manages or works aboard a charter yacht or commercial vessel but because it comes into effect in August of this year (2013)! 

 

The Maritime Labour Convention (MLC2006) is an International Labour Organization (ILO) resolution, created in 2006 as the fourth pillar of international maritime law (the first three pillars being SOLAS, STCW and MARPOL). The Convention sets out seafarers' rights to decent conditions of work on a wide range of subjects, and aims to be globally applicable, easily understandable, readily updatable and uniformly enforced.  

Under the terms of the convention the word "seafarer" includes virtually anybody who works aboard an ocean going vessel with very few exceptions. However, one exception is where the vessel is used for pleasure only. The decision by the ILO to create this major new Maritime Labour Convention was the result of a joint resolution by the international seafarers’ and ship owners’ organizations, also supported by governments. 

They pointed out that the shipping industry is “the world’s first genuinely global industry” and therefore “requires an international regulatory response of an appropriate kind – global standards applicable to the entire industry”. In plain language, these 3 groups, representing vessel owners (employers), seafarers (crew) and governments (all 185 ILO member countries) agreed to create legislation that would regulate all (or nearly all) aspects of working at sea. This includes the "novel idea" that those who make a living at sea should be able to expect working and social conditions at least be equivalent to those provided to those who work on land! 

The convention document includes 5 sections (called Titles).  Each Title contains general as well as specific provisions according to which each member country has to provide detailed regulations.  These are for the attention of vessel owners and other entities involved in the employment of seafarers. While each ILO member state is responsible for developing certain regulations which affect its own nationals, Flag States are responsible for providing much of the detailed regulations affecting the vessel and crew that fly its flag.  

Finally, there is a certification process which needs to be passed by every charter yacht and other vessel in commercial use as well as periodic inspections when entering ports belonging to countries that have ratified the convention. MLC had to be ratified by at least 30 member states with a total share of 33% of the world gross tonnage, in order for it to be ratified. 

In August 2012, the convention was ratified by 34 states representing 68.2% of the world gross tonnage of ships. Click Here for a full list of countries that have now ratified. The convention will enter into force one year later on August 20th, 2013. MHG has been tracking the Maritime Labour Convention since 2006 and has been active since then in interpreting that part of the regulation which deals with Health protection, medical care, welfare and social security protection (Title 4 of the MLC). 

 Not sure if the benefits you currently have in place are MLC compliant? Speak with MHG Insurance Brokers to review your current plan. MHG can provide advice and information to help you determine whether your plan is in the spirit of MLC, and whether additional benefits may be needed. We can also review your plan for competitiveness in the marketplace as well as benchmark it with other crew group plans. Call MHG at (+1) 954-828-1819, email us at: mlc@mhginsurance.com.

What is The Maritime Labour Convention?

Yacht Crew Insurance

Are you aged 19 to 30, commitment-free and looking for an extraordinary job traveling the world? Picture yourself waking up to a beautiful sunrise on the ocean, docked at an exotic destination rich with culture.  All while earning a paycheck with your expenses paid. This lifestyle provides the opportunity to save while still enjoying some splurging. Today, with the yacht industry expanding at a record rate and many yacht owners becoming more adventurous, there is hardly a coordinate on the globe that is beyond the reach of luxury yachts.

Working on yachts is not like other careers. There is no going home at the end of the day. The crew that surrounds you twenty-four hours a day are your work colleagues, your confidantes, your family, and your friends, and this certainly makes for strong, interesting, dynamic, and enduring friendships.  Many crew members work 5 ½ to 6 days a week, 16 hours per day.

You do not need a model look to work on one of these luxurious yachts but, you do need an open smile and a presentable appearance.  Most yachts are looking for crew that is genuinely enthusiastic and almost all want a crewmember that will make a concerted and conscientious effort to 'do the right thing' because a positive mindset creates a positive environment. After all, it is those crewmembers that have a real passion for the sea and are eager to learn all they can about the industry and the countries they visit and themselves and others who ultimately have the most fulfilling experience onboard yachts. The yacht gains a valuable crewmember, and the crewmember gains an invaluable experience, so everyone wins.

Once you’ve landed your dream job working onboard a yacht, you’ll have to think about obtaining an international health insurance plan if a group plan is not already in place. As an insurance broker, MHG can research the marketplace to find the best suited plan with the insurance coverage you need to fit your new career and lifestyle. Looking for a plan designed specifically for yacht crew with coverage for scuba or amateur sailboat racing? Or perhaps you’re looking for a more traditional land-based plan that you can keep even after you leave yachting. MHG’s expert staff can assist you in selecting the medical insurance plan that best fits your unique situation.

Do not let that dream job turn into a medical nightmare.  Life on the water can be hazardous, and in the unfortunate event of an on-the-job injury, you need a quality plan. As the yacht crew insurance specialists, MHG Insurance Brokers offers a variety of comprehensive medical insurance plans to meet the needs of each client. Whether you are looking for crew insurance, travel insurance, or group insurance plans, MHG has solutions to fit every budget. Contact the experts at MHG to help you choose the ideal policy for your unique requirements. Contact us today at 877-278-7400 to learn more.

Yacht Crew Insurance

You have landed that dream job aboard a gorgeous yacht and are excited about the places you will visit and the people you will meet, but did you ask your employer the important questions?  How and when are you going to be paid? Will taxes be taken out of your pay? And what about insurance?  Health insurance, disability insurance, life insurance? 

 

“Look at salary as one part of total compensation package including vacation, travel stipend, medical insurance, opportunity for continuing education, etc., as those are real costs and represent another $10,000-15,000 in additional benefits that many employers now pay,” said a chief stew in The Triton survey of crew members. Most crew members, about 70 percent, are paid monthly with the rest receiving their pay every other week.  

More than three-quarters of them receive their pay through direct deposit or wire transfer, most of the rest received a paper check.  Very few are paid in cash and they are usually on smaller yachts. The U.S. dollar is the most popular form of currency for crew pay, about 82 percent, regardless of where they work in the world.  Most of the remaining crews receive their pay in Euros. 

Nearly 70 percent of crew members do not have any taxes deducted through their paychecks.  However, you are still responsible for taxes due, if any, in your home country. Many US crewmembers are paid as independent contractors and receive a 1099 form for wages and tips earned and will owe taxes.

Many long-term US crew have created corporations, and in that case the yacht pays the corporation, which in turns pays the crewmember.  The corporation then pays all the taxes, travel expenses and health benefits, which can be advantageous.

If your employer does not provide health insurance you need to obtain your own, so you are covered in case of an accident or illness. MHG Insurance Brokers works with several insurers to provide you with the medical benefits that you need for your new career and lifestyle. We offer health benefit plans designed specifically for captains, officers, and crew. With several plans to choose from, MHG can recommend a plan specifically designed for an individual or a group.  

MHG also offers plans suited for seafarers who need spouse and/or dependent coverage. MHG’s expert staff can assist you in selecting the medical insurance coverage that best fits your situation. We offer worldwide medical coverage or the option to exclude the US and Canada for reduced premiums.  Plans can also offer optional term life and disability coverage, special crew member return benefits and out-of-the-country legal expenses.   If you are on a yacht with recreational water sports and scuba diving, 

MHG has a plan to cover you. Do not let your dream job turn into a medical nightmare.  Life on the water can be hazardous, and in the unfortunate event of illness or injury, you need a quality plan. As a yacht crew marine insurance broker MHG Insurance Brokers offers a variety of comprehensive medical insurance plans to meet the needs of each client. Whether you are looking for crew insurance, travel insurance, or group insurance plans, MHG has solutions to fit every budget. Contact the experts at MHG to help you choose the ideal policy for your specific requirements. Contact us today at 877-278-7400 to learn more.

Yacht Crew Insurance

Float Away

Come join the fun at the 27th Annual Palm Beach International Boat Show, March 22 - 25, 2012.  This show is one of the top ten boat shows in the country; featuring more than $350 million worth of boats, yachts and accessories from the world’s leading marine manufacturers.  

 

The event includes hundreds of boats from 8 foot inflatables, power boats, fishing boats, center consoles, bow riders, personal watercraft to superyachts over 150’. Opening day is Thursday, March 22 from noon- 7pm. Mark Bononi, MGH’s Yacht Division Director, will be in attendance on Thursday.  

This international show continues on Friday and Saturday - the doors will open at 10am -7pm and the event wraps up on Sunday from 10am-6pm.  Show entrances will be located at Evernia St. /Flagler Dr. (waterfront) and North Clematis St. /Flagler Dr. (waterfront).  

Show admission is $14 for Adults and $5 for children (6-15), children under 6 are free.  There is a $2 discount for tickets purchased online. On Saturday and Sunday The Kids' Fishing Clinics, presented by Hook the Future, are open to all kids ages 4-16 and feature marine life experts teaching kids basic fishing techniques. Upon completion of all four learning stations, participating kids receive a FREE rod reel. The hands on interactive instruction will include: casting a rod and reel, how to fight a fish, selecting tackle and lures and fishing ethics.  

Registration begins at 10am Saturday & Sunday. Kids ages 4-16 must be registered and accompanied by a paid parent or guardian. But if all that isn't enough, there are at least nine more reasons to attend the Palm Beach Boat show this year: the IGFA School of Sportfishing will be hosting fourteen seminars on site with some of the area's best captains and professional anglers throughout the boat show. Now, while checking out the latest gadget or considering a new skiff, anglers will also be able to pick up hot tips and tricks from not just one or two, but nine of the most experienced fishermen on the water.  All of the sessions are free with paid admission. 

MHG Insurance Brokers provides comprehensive international medical insurance for yacht captains and crew. If you’re attending the Palm Beach Boat Show and wish to learn more about yacht crew insurance, employee benefits, life & health and business insurance, our colleague Mark Bononi, the Yacht Division Director will be walking the show.  

If you want us to stop by and visit to answer any questions you may have about your existing health plan or about purchasing health insurance, Mark can be reached on his cell phone at 305-905-2019.  Our expert staff is always available to answer your questions, contact MHG at 877-278-7400 today for all your marine insurance needs.

Float Away

MHG - We Speak Insurance

Choosing an insurance plan for your group can be intimidating; insurance has its own language. At MHG Insurance Brokers we understand the language of insurance and we understand the marine industry. We specialize in insurance plans designed specifically to meet the needs of marine employers, shipboard officers and crew, and contractors and concessionaires.  

 

Since 1991, MHG has provided insurance for the world’s top cruise line officers and crew.  MHG will help you sort through the terminology and key features to determine the best carrier and plan for you. As an employer, the health and wellbeing of your employees is a valuable asset. 

We offer a portfolio of life and health insurance solutions.  We provide major medical insurance, short term medical, life insurance and short term disability insurance, dental insurance and even supplemental insurance.  We can also provide insurance to your shore side staff. 

MHG is a full service broker and has access to all of the major US insurance carriers.  MHG works for you, our client and because every group is different, we take the time to find the right plan that fits both your budget and the needs of your group. Show your employees how valuable they are to you by providing life and disability insurance. This insurance is a valuable form of protection for you and your employees. 

Investing in group life insurance will provide an excellent fringe benefit for new and existing employees, and may be deducted from federal income tax premiums. As a business owner, it is advantageous to take care of your employees and important to protect your business. There are many different types of business coverage that a company may need such as property insurance, liability insurance, crime insurance, business interruption insurance, kidnap and ransom insurance, and workers' compensation to name a few. 

Whether you are a new business owner and are wondering what type of insurance you need or an established business looking for a more competitive option, MHG has the resources and contacts to help you obtain the correct coverage at the right price. By getting to know you, your business and your risks, we are able to secure the appropriate coverage. We are dedicated to our clients and treat them as friends and business partners. 

At MHG our commercial insurance solutions include general liability, professional liability and products liability.  General liability insurance is secured to protect the insured from the potential risks and liabilities imposed by lawsuits or similar claims that may arise out of bodily injury, property damage, or product malfunctions.

Professional liability insurance is secured to cover less tangible claims resulting from a company or a person's errors and omissions and include claims made for negligence, failure to perform and inaccurate advice. This insurance also covers perceived financial loss and violation of good faith and fair dealing. 

Is your property protected? At MHG we offer commercial property insurance to protect your property from physical damage and loss of use as well as to protect your inventory or assets against loss or damage caused by theft, an accident or other means. This coverage protects your business property even when it is not at your business. If you are leasing a building, office or retail location, you will only need to procure "contents" coverage to protect your fixtures, furniture, inventory, office equipment and supplies. 

Do you understand the Longshore Harbor Worker's Compensation Act, often referred to as USL&H?  The experienced staff at MHG do, and we can help you provide the required benefits to your employees working in the maritime industry. MHG also provides marine liability insurance for liability or property damages to a third party while engaged in marine related operations.  

If your company provides detailing service to yachts or cruise ships you need to include a Ship repairer's Legal Liability endorsement that insures liability coverage for damages to a vessel while it's in the care, custody or control of the detailer. Marinas and cruise lines require proof of appropriate insurance prior to beginning work.  

At MHG, we have multiple carriers offering packaged Marine Liability Insurance programs that are available to companies of all types of marine risks. MHG Insurance Brokers offers turnkey support and solutions for all your insurance needs. Please contact us today at 877-287-7400 for more information.

If you are attending Cruise Shipping Miami March 13th-15th at the Miami Beach Convention Center, please feel free to stop by our booth #1893 located in the Ship Services and Hotel Operations section for more information on any of the services we provide. Please join us for a glass of wine during our opening reception on Wednesday, March 14th from 2pm-5pm.  Avoid the $100 fee and register as our guest for complimentary tickets to the Exhibition Hall.

MHG - We Speak Insurance

At MHG Insurance Brokers we specialize in insurance plans designed specifically to meet the needs of marine employers, shipboard officers and crew, and contractors and concessionaires.  Because of the unique needs of individuals and groups at sea, choosing an insurance broker that understands the lifestyle and work environment is essential. 

 

Services offered by MHG can be tailored according to each employer’s needs with the secure knowledge that they are marine specific and supported by a team experienced in the marine environment. With our extensive market relationships and experience in the industry, we offer sound, independent advice as to which insurance and financial services providers and products are best suited to address the needs of individuals and employers. 

Marine insurance solutions include private international health insurance, vacation health insurance, disability income, life insurance, short-term health insurance and retirement savings plans. Here is more information on the plans we offer. 

MHG provides private international health insurance to all nationalities. Our extensive market relationships permit the design of international group medical plans that are tailored to each employer's specific philosophy and compensation needs. MHG also offers various benefit packages that can be combined for groups located in the US. 

MHG offers short-term health insurance for contractors and concessionaires which provides coverage for emergency medical treatment, emergency medical evacuation, should the local facilities be inadequate and a number of other benefits. For groups requiring coverage for employees while on vacation, we can customize a plan to fit your needs. 

Disability Income is an effective risk management tool for employers that not only enhances the value of compensation packages for employees but also provides peace of mind.  It can provide protection against loss of income in the event an employee becomes temporarily or permanently disabled while at work or on vacation. Coverage is available to groups of five or more and can be customized to fit your budget and benefit needs. With worldwide coverage for disability due to accident or sickness, these plans also allow you to select a waiting period and benefit amount while typically not requiring underwriting. 

Let MHG Insurance Brokers provide you and your employees with peace of mind.  Group life insurance offers employees comfort knowing that in the event of their death their loved ones will receive financial support for ongoing expenses, funeral arrangements or children's education. For employers, group life insurance is a cost-efficient benefit because it is highly valued by employees.

MHG's investment team is able to provide cost effective, flexible benefit retirement savings plans which will help recruit, retain and motivate staff while providing the employer with maximum value for each dollar spent. As your specialist plan manager, MHG's role would normally involve consultancy, plan design, independent brokerage, investment planning and communication, installation and administration of the plan. We also provide consultancy and plan management services for employers with existing plans. 

With over 20 years of experience focused on the welfare of crew, MHG has the knowledge to advise the cruise industry about its insurance needs.  Please contact us today at +1 954 828 1819 for more information on any of the services we provide. 

If you are attending Cruise Shipping Miami March 13th-15th at the Miami Beach Convention Center, please feel free to stop by our booth #1893 located in the Ship Services and Hotel Operations section. Join us for a glass of wine during our reception on Wednesday, March 14th from 2pm-5pm.  If you still need tickets for Cruise Shipping Miami, avoid the $100 fee and register as our guest for complimentary tickets to the Exhibition Hall.

MHG – The Cruise Industry’s Insurance Specialists

You cannot watch the news lately without the graphic photos of the Costa Concordia cruise ship being plastered on your TV or computer screen. 

 

On January 13th, the Costa Concordia ran aground on a reef off Isola del Giglio, Italy and began listing heavily towards the starboard side. The ship was carrying 3,200 passengers and 1,000 crew members at the time of the accident. At the date this post was written, the search for 21 missing people resume. 

Espirito Santo Investment Bank released a report expecting the insured losses from the Carnival Corporation cruise ship disaster estimated to be between $500 million and $1 billion. That would make the disaster the largest marine loss in history. This number is up from the first estimate released which estimated losses around $513 million. 

The new estimate takes into consideration the liability losses as well as those stemming from the potential cleanup and environmental costs associated with the disaster. To understand where the Costa Concordia losses in context of past accidents, the Exxon Valdez oil tanker crash which included $500 million in pollution losses. 

With losses reaching at least $500 million, the claims will be spread across 10 or so different writers so no one insurance company should see more than 10% of the losses. The lead insurers for the ship are XL Group, Assicurazioni Generali and RSA Insurance Group plc. The risk is expected to be relatively fragmented considering most marine policies are written by syndicates of different companies and protection and indemnity clubs. 

The London-based Standard Club confirmed it is the lead protection and indemnity insure for the stricken ship. The liability side of the insurance can be a little more complicated due to the amount of individuals who file claims, if the captain is found guilty, etc. 

The removal of the wreckage is estimated to cost about $10 million. Considering the small percentage of passengers who were injured or deceased due to the accident, the human cost will be relatively low. Liability claims get tied up in litigation and take longer to be paid. A delay will also be made when determining if the ship’s captain Fancesco Schettino will face criminal charges. He is facing charges of manslaughter and abandoning ship; if found guilty, he could be held financially accountable for the disaster. 

While the losses are likely to be absorbed by the market, it is unclear if the disaster will be enough to change the current prices in the marine insurance market. Unlike a hurricane or serious storm where you see prices go up the next day, this would be a much slower process. 

The marine insurance industry is still absorbing costs of the damage caused by the flooding in Thailand and the earthquakes in Japan. Considering the industry is still feeling the strain from these past disasters, the Costa Concordia incident could put pressure to increase prices. 

MHG Insurance Brokers provide insurance plans designed specifically to meet the needs of marine officers, crew and contractors, expatriates, and US residents. MHG also offers yacht crew insuranceinternational medical insurancedisability insurance ,long term carelife insurance and business insurance. Our staff applies years of industry knowledge to find the best plan for each individual client, and is always a phone call or email away to answer any questions. For more information, contact MHG today.  

Costa Concordia Losses Could Reach $1 Billion, May Be Worst Marine Loss in History