> What Is License Insurance & Who Does It Benefit?

Marine license insurance is a pre-paid legal defense insurance policy that provides policyholders with legal representation by a local maritime attorney in the event of a covered shipping casualty or incident. This coverage is designed specifically to protect the licenses and livelihoods of professional mariners, such as USCG-licensed deck and engineering officers and certified tankermen serving aboard all types of passenger vessels operating in U.S. waters.

> What Types of Events Are Covered By License Insurance?

Typically, the types of events covered by license insurance are shipping casualties and incidents – including, but not limited to accidental strandings, sinkings, fires/explosions, collisions, allisions, oil product spills, groundings, heavy weather damage and wake damage – that trigger a USCG investigation. These investigations can result in negligence charges against involved officers who can face suspension or revocation of their license(s).

> Why Consider License Insurance Coverage?

The majority of marine license insurance claims minimally involve: an accident scene investigation, including an “informal” USCG interview; the requirement to complete and submit a 2692 Marine Casualty Report by the involved mariner; a subsequent formal USCG interview at the local marine safety office; and, if charged, potential lengthy proceedings in administrative court.

If paying out of his/her own pocket, the affected mariner can incur legal bills of $300-350 per hour for the duration of the process. Conversely, if the mariner has his/her own or employer-provided license insurance, the annual premium (i.e., $450-500) is equal to less than two hours of legal fees, and provides fully-paid defense from the onset of the incident to the conclusion of the case.

> Is It In An Employer’s Best Interests To Provide Its Officers Coverage?

In general, it is in an employer’s best interests to provide coverage to its officers. Each company has its own philosophy when it comes to providing fully or partially paid benefits to its employees. However, providing affordable license insurance often becomes a win-win situation. Firstly, a successful defense of an officer’s license keeps him/her on the active roster and secondly, the appreciation and resulting loyalty helps to not only retain good employees, but attract qualified new ones.

A good example of the need for professional mariners to obtain license insurance can be found in the quick read: Stand by Me. This article sheds light on where, in the event of an incident, a vessel owner's liability insurance may work to defend the vessel’s captain, and where there is a need for the captain to obtain his/her own separate counsel.

> What are the industry’s most comprehensive coverages?

With over 85 years of experience, MOPS offers the most comprehensive coverages in the industry:

• License Defense — Fully paid legal representation and defense by experienced maritime attorneys if you are involved in a shipping incident that leads to action against your marine license(s). There are no co-insurance clauses and no hidden deductibles.
• Professional Instruments and Equipment — Loss or damage to listed and approved professional instruments and equipment while you serve aboard your vessel.
• Foreign Port — Approved attorney fees and expenses if you are ordered to attend, either as a party or witness, any inquiry of a foreign court concerning a shipping casualty or incident involving your vessel.
• Loss of Income — Income compensation at the verifiable amount of salary you choose to insure – plus daily subsistence payments for up to 12 months if your license is revoked, suspended or reduced in grade resulting from a covered shipping incident.
• Civil Legal Defense — Paid legal defense if a civil lawsuit is brought against or served upon you in any court within the United States, its territories or a foreign court resulting from a covered shipping casualty or incident involving your vessel.
• Civil/Professional Liability (Ask About Our Reduced Rates) — Professional liability coverage for additional defense costs and/or judgments in civil court proceedings resulting from a covered shipping casualty or incident.
• Civil Penalties Legal Defense — Paid legal defense if you are assessed a civil penalty by the USCG or any other entity authorized to impose a civil penalty or fine resulting from a shipping incident involving your vessel.
• Criminal Acts Defense — Paid legal defense if you are charged criminally in connection with a marine casualty that results in allegations or charges related to federal (OPA-90) and/or state water pollution laws and/or regulations.