Buy Commercial Fishermen Insurance

Commercial Fishermen Insurance Policy Information

Commercial Fishermen Insurance. Tuna, salmon, crab, lobster, clam, scallops; the sea provides a bounty of food, and as a commercial fishermen, you play a vital role in supplying food to people around the globe.

Whether you operate a small outfit with just a few vessels and supply fresh seafood to local markets, or you are the proprietor of a national or international operation with a large fleet of vessels and you supply seafood to markets around the globe, you need to make sure that your business is properly protected.

How do you do that? By investing in the right type of commercial fishermen insurance.

Commercial fishermen catch and trap fish and shellfish, including carp, cod, flounder, herring, salmon, sardines, tuna, clams, crab, lobsters, scallops, shrimp, and squid. The business may be owned by a family or a large corporation.

Equipment used include cranes, dredges, nets, poles, traps, and trolling lines. Fish and shellfish are highly perishable and must be kept from deteriorating between the time of capture and pickup by a processor, restaurant, retail store, or wholesaler.

Aboard the fishing vessel, the fish may be gutted and washed, then chilled or iced in refrigerated containers or salted until delivered to shore. Shellfish may be kept alive in tanks while on the vessel.

Once the vessel lands, the catch may be picked up by or delivered directly to customers or stored temporarily in a warehouse. Seafood is subject to FDA requirements, which are provided by the National Oceanic and Atmospheric Administration (NOAA). NOAA provides sanitation inspections of vessels and storage facilities along with product quality, grading and certification services.

As the owner and operator of a commercial fishermen, you are liable for anything that goes wrong. In order to protect yourself from the risk of serious financial losses, you need to invest in the right type of commercial fishermen insurance coverage.

What kind of insurance do you need? How much should you carry? Read on to find out how to properly protect your AL commercial fishermen from any mishaps that may be thrown your way.

Why do commercial fishermen need to be insured? What type of insurance should they carry? Below, we'll explore the answers to these key questions and more.

Commercial fishermen insurance protects your fishing operation from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked commercial fishing insurance questions:

• What Is Commercial Fishermen Insurance?
• How Much Does Commercial Fishermen Insurance Cost?
• Why Do Commercial Fishermen Need Insurance?
• What Type Of Insurance Do Commercial Fishing Operations Need?
• What Does Commercial Fishermen Insurance Cover & Pay For?

Why Do Commercial Fishermen Need Insurance?

As a commercial fisherman, the very nature of your business is risky. The sea can be volatile and is difficult to predict. An unexpected storm could blow in, capsize one of your vessels, resulting in serious injuries, loss of any product that was caught, and damage to the ship.

This isn't the only type of issue that commercial fishermen could experience. A client could file a lawsuit against you, claiming that the products you supplied were responsible for illnesses. The dock where you keep your vessels could be damaged in a storm. These are just some of the issues that commercial fishermen face.

As the owner and operator of your commercial fishing outfit, you are liable for any of the costs that are associated with mishaps that may occur. As you can imagine, these costs can be exorbitant and if you have to pay for them out of your own pocket, you could be looking at serious financial losses.

If, however, something unexpected does occur and you do have the right kind of commercial fishermen insurance coverage, instead of paying for the associated expenses yourself, your carrier would cover them for you.

In other words, insurance can protect you from financial hardships, and can even help you avoid losing your business.

Of course, in addition to the financial security insurance provides, commercial fishermen are legally required to carry certain types of coverage. If you fail to have mandated coverages, you could be hit with major penalties and may even end up having your operation shut down.

Commercial Fishing's Risks & Exposures

Ocean marine exposures are from the vessel, its cargo, third party liability, and injury or death to the crew while working away from shore. The size of the vessel, the equipment used, the type of fish or seafood being sought, whether fishing is in fresh or salt water, the distance from shore, and the length of time out to sea are all important considerations.

Communication with land, Coast Guard, and other nearby fisherman is vital. Regular maintenance of the vessel and all equipment must be documented. Cargo areas must be appropriate for the type of seafood or fish that is caught and the length of time the catch is held.

Bodily injury and property damage caused by the vessel is an important exposure. The crew and master must be trained in navigating the fishing area and must have the needed tools to prevent contact with other fixed objects such as piers, bridges and docks and other vessels.

Injury to the crew and captain is considered an ocean marine exposure because of maritime law and the Jones Act. The exposures are severe due to the hazardous working conditions aboard the vessel. Long hours, strenuous work, dangerous equipment (such as cranes or winches), and severe weather conditions combine to make commercial fishing one of the most dangerous occupations in the world.

Fishermen can fall overboard or drown when the vessel capsizes, is flooded, or becomes unstable due to high waves and/or heavy winds. Safety equipment, including use of personal flotation devices (PFDs) equipped with a Global Positioning System (GPS) while on deck, emergency stops on winches, and hatch and door monitoring systems to prevent progressive flooding, should be required.

Drills on safe evacuation procedures should be regularly conducted. As operations are conducted in remote areas, it is difficult to transport an injured worker to a medical facility to receive prompt treatment.

Premises liability exposure is light. There may be an office as well as some selling of fish and seafood on the pier, but this is very limited. If the fisherman processes or sells fish, refer to the Fish Packers or the Meat Markets classifications. Commercial fishing corporations can be targeted by conservation or animal rights groups. Additional security may be required if there are demonstrations.

Products liability exposure does not exist unless the fisherman processes the fish. If the fisherman processes or sells fish, refer to the Fish Packers or the Meat Markets classifications.

Environmental impairment exposure is high due to the potential for water pollution from waste products from fish and seafood, which can include heads, skin, viscera and carcasses along with briny storage fluid. Disposal must be documented and meet all FDA and EPA standards. Fishing operations may damage coral reefs.

Workers compensation exposure is limited on shore to that of an office plus light maintenance type operations related to the equipment used on the vessel. The fishing operations are not covered by workers compensation but by federal maritime law and the Jones Act. Additional coverage in Alaska is available through the state's Fishermen's Fund.

Property exposure is limited to items kept on shore, including an office and storage of items needed to support the vessel. If the fisherman processes or sells fish, refer to the Fish Packers or the Meat Markets classifications.

Crime exposures are from employee dishonesty and money and securities. Background checks, including criminal history, should be obtained on each employee prior to hiring. Ordering and billing must be handled by two different employees.

Employee theft of fresh seafood is a particular problem because of the high value of certain types of seafood and the lack of clear identification or markings on the items.

Inland marine exposure includes accounts receivable for customers with credit arrangements, computers for tracking inventories, and valuable papers and records for customers' and suppliers' information and documentation of regulatory requirements.

Business auto exposure may be limited to hired or non-owned from employees using their vehicles to run errands. If the fisherman processes or sells fish, there may be delivery to customers in refrigerated trucks and the transporting of frozen goods.

Drivers must have appropriate licenses and acceptable MVRs. Vehicles must be regularly maintained with records kept in a central location.

What Does Commercial Fishermen Insurance Cover & Pay For?

Commercial fishermen can find themselves in legal trouble for several reasons, some of which are unique to their line of work. It's critical for these professionals to have the proper insurance coverage to protect them financially from potential lawsuits. Here are some examples:

1. Injury or Death on the Vessel: One of the most common reasons for lawsuits in commercial fishing is injuries or deaths that occur on the fishing vessel. These accidents could involve crew members, visitors, or even stowaways. In such cases, the vessel owner may be held responsible for damages, medical expenses, lost wages, and more. A marine liability insurance, such as Protection and Indemnity (P&I) insurance, can help cover these costs. This policy type is designed to cover legal liabilities for bodily injury or loss of life that occur onboard or in connection with the operation of the vessel.

2. Damage to Other Vessels or Property: If a fishing vessel causes damage to another vessel, a dock, or other marine property, the vessel owner could be held liable. Hull and Machinery (H&M) insurance would cover physical damages to the insured vessel, while P&I insurance would cover liabilities to other parties' property. For instance, if a fishing vessel accidentally crashed into a marina causing significant damage, these policies could cover repair or replacement costs.

3. Pollution: Commercial fishing operations can sometimes result in environmental pollution, which could be through oil leaks, waste disposal, or even a sinking vessel. In such cases, the vessel owner could face significant fines and cleanup costs. Marine pollution liability insurance covers the costs associated with containment, cleanup, and potential damages to third parties resulting from accidental pollution.

4. Cargo Loss: Fishermen could be sued if they fail to deliver the agreed amount of catch due to spoilage or other unexpected circumstances. Cargo insurance provides coverage for the loss or damage of the goods (in this case, fish and seafood) that fishermen are transporting. This insurance can compensate for the lost income resulting from the lost or damaged cargo.

5. Regulatory Non-compliance: Non-compliance with fishing regulations, such as overfishing or catching endangered species, can result in lawsuits or fines. While insurance cannot protect against deliberate violations, it can provide some protection if the fisherman unknowingly violates a rule. Legal defense insurance can help cover legal defense costs in such cases, though it's always important for fishermen to stay informed and compliant with all relevant regulations.

6. Commercial General Liability: Commercial fishermen can also face other common business lawsuits, such as those related to slips and falls on their premises or defamation claims. Commercial General Liability (CGL) insurance provides coverage for a wide range of these potential legal liabilities, helping to cover legal fees and any awarded damages.

Ultimately, the right insurance coverage provides a financial safety net for commercial fishermen, ensuring that they can continue their operations even in the face of unexpected legal challenges. However, it's crucial for fishermen to understand their policies, ensure they have the right coverage for their specific risks, and operate their businesses in a safe and legal manner to minimize the likelihood of lawsuits.

Commercial Insurance And Business Industry Classification

• SIC CODE: 0912 Finfish, 0913 Shellfish, 0919 Miscellaneous Marine Products
• NAICS CODE: 114111 Finfish Fishing, 114112 Shellfish Fishing, 114119 Other Marine Fishing
• Suggested Workers Compensation Code(s): 8810 - Note: This code applies only to the office operation. Commercial fishermen's injuries are covered under the vessel-related P&I coverage based on provisions in the Jones Act and federal maritime law.

Description for 0912: Finfish

Division A: Agriculture, Forestry, And Fishing | Major Group 09: Fishing, Hunting, And Trapping | Industry Group 091: Commercial Fishing

0912 Finfish: Establishments primarily engaged in the catching or taking of finfish.

• Bluefish, catching of
• Cod, catching of
• Eels, catching of
• Finfish, catching of
• Fisheries, finfish
• Haddock, catching of
• Mackerel, catching of
• Menhaden, catching of
• Pilchard, catching of
• Pollack, catching of
• Rays, catching of
• Salmon, catching of
• Sea herring, catching of
• Sharks, catching of
• Tuna, catching of
• Whiting, catching of

Description for 0913: Shellfish

Division A: Agriculture, Forestry, And Fishing | Major Group 09: Fishing, Hunting, And Trapping | Industry Group 091: Commercial Fishing

0913 Shellfish: Establishments primarily engaged in the catching or taking of shellfish.

• Clams, digging of
• Crab, catching of
• Crayfish, catching of
• Fisheries, shellfish
• Lobsters, catching of
• Mussels, taking of
• Oyster beds
• Oysters, dredging or tonging of
• Shellfish, catching of
• Shrimp, catching of
• Squid, catching of

Description for 0919: Miscellaneous Marine Products

Division A: Agriculture, Forestry, And Fishing | Major Group 09: Fishing, Hunting, And Trapping | Industry Group 091: Commercial Fishing

0919 Miscellaneous Marine Products: Establishments primarily engaged in miscellaneous fishing activities, such as catching or taking of sea urchins, terrapins, turtles, and frogs. The gathering of seaweed and sponges is also included in this industry.

• Cultured pearl production
• Frogs, catching of
• Sea urchins, catching of
• Seaweed, gathering of
• Sponges, gathering of
• Terrapins, catching of
• Turtles, catching of

Commercial Fishermen Insurance - The Bottom Line

To find out what other kinds of commercial fishermen insurance coverage you should carry and to develop a policy that is customized to meet your unique needs, speak with a reputable agent who specializes in commercial fishing insurance.

Additional Resources For Agribusiness Insurance

Learn about small business agribusiness insurance - a type of commercial insurance protects farmers against loss of, or damage to crops or livestock.

• Insurance Farming Terms Glossary
• Aquaculture Fish Farm
• Beekeepers
• Commercial Fishermen
• Crop
• Dairy Farm
• Equine & Horse Farm
• Farm And Ranch
• Farm Equipment Dealers
• Farm Labor Contractors
• Livestock & Cattle
• Mushroom Farms
• Nursery And Greenhouse
• Nut Farm
• Orchards & Groves
• Poultry Farm
• Sheep & Goat Farm
• Swine, Hog & Pig Farm
• Tobacco Farm
• Specialty Farm Risks

The agribusiness industry is a vital sector of the global economy, providing food, fiber, and other essential products to people around the world. However, it is also a complex and risky industry, with many potential sources of loss and damage. This is why the agribusiness industry needs commercial insurance.

One major risk in the agribusiness industry is natural disasters, such as floods, droughts, and hurricanes. These events can devastate crops and livestock, leading to significant financial losses for farmers and other agribusiness owners. Business insurance can help protect against these losses, providing a financial cushion to help businesses recover and continue operating.

Another risk in the agribusiness industry is the potential for accidents or injuries on the farm. Farming can be a dangerous occupation, and accidents can occur while working with heavy machinery or handling animals. Insurance can help cover the costs of medical treatment, lost wages, and other expenses related to these accidents.

In addition to these risks, the agribusiness industry is subject to various legal and regulatory requirements, such as food safety standards and environmental regulations. Noncompliance with these requirements can result in costly fines and legal action. Insurance can help cover the costs of legal fees and settlements, protecting businesses from financial ruin.

Overall, the agribusiness industry needs insurance to protect against the various risks and challenges it faces. Without commercial insurance, businesses in this industry would be vulnerable to financial losses that could threaten their survival. By investing in insurance, agribusiness owners can safeguard their businesses and ensure their continued success.

Minimum recommended small business insurance coverage: Buildings, Business Personal Property, Crop Insurance, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Mobile Equipment, Valuable Papers and Records, General Liability, Environmental Impairment, Umbrella, Business Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.

Other commercial insurance policies to consider: Business Income and Extra Expense, Earthquake, Equipment Breakdown, Farm Owners, Flood, Computer Fraud, Employee Dishonesty, Forgery, Money and Securities, Cyber Liability, Employee Benefits, Employment-related Practices Liability, Product Recall, Underground Storage Tank, Stop Gap Liability and Unmanned Aerial Vehicles (UAV) (Drones).