Understanding the Basics of the Jones Act in Maritime Law

The maritime industry is the backbone of global trade and commerce, transporting goods, resources, and people across oceans and waterways. The international shipping industry accounts for around 80% of world trade, underscoring its vital role in connecting economies worldwide.

In the United States, the marine economy alone contributed $476 billion, demonstrating maritime operations' indispensable role in driving local and global prosperity. 

Yet, with this immense scale comes significant challenges, especially for those who operate and work on vessels. The maritime industry is inherently high-stakes, with risks of accidents, injuries, and legal disputes frequently looming over its operations. To address these complexities, maritime laws such as the Jones Act exist.

The Jones Act is a cornerstone of U.S. maritime law. It is designed to protect maritime workers and regulate shipping practices within domestic waters.

In this post, we’ll break down the basics of the Jones Act, including its history, purpose, coverage, and how it impacts maritime operations.

What is the Jones Act?

The Jones Act, formally known as Section 27 of the Merchant Marine Act of 1920, is a crucial part of U.S. maritime law. It plays two essential roles: 

1. Protecting the rights of maritime workers and 
2. Regulating the transportation of goods between U.S. ports.

Here’s a breakdown of what the Jones Act entails:

• Protection for maritime workers: The Jones Act ensures that seamen who are injured while working on U.S. vessels can seek compensation for their injuries. 

This law holds employers accountable for maintaining safe working conditions and provides workers with legal avenues to claim damages caused by negligence.

• Regulation of domestic shipping: The act mandates that goods transported between two U.S. points must be carried on vessels that meet specific criteria. These vessels must:some text
  • Be built in the United States.
  • Be owned and controlled by U.S. citizens.
  • Be crewed primarily by U.S. citizens or permanent residents.

The History of the Jones Act and Its Purpose

The Jones Act was established after World War I to strengthen the U.S. maritime industry, ensure the nation's ability to transport goods, support economic growth, and maintain national security during crises.

A key objective of the act was to safeguard the domestic maritime economy by reserving trade between U.S. ports (known as cabotage) for American-owned and operated vessels. This measure reduced reliance on foreign shipping while preserving jobs for American workers.

By promoting the use of U.S.-built vessels and protecting maritime jobs, the Jones Act supports over 650,000 jobs and contributes billions to the national economy.

Key Moments in the Jones Act’s History

• Early maritime laws: The principles of the Jones Act trace back to early U.S. cabotage laws, which restricted domestic trade to U.S. ships. These laws mirrored similar practices in other nations and were vital in boosting a thriving domestic shipping industry.
• Merchant Marine Act of 1920: Senator Wesley Jones of Washington spearheaded the legislation, emphasizing the importance of maritime commerce for national security and economic stability. This act codified worker protections and strict vessel requirements for domestic shipping.
• World War II and beyond: The Jones Act proved its value during World War II, as the U.S. relied on its strong merchant fleet to transport troops, equipment, and supplies. The act continues to support a strong maritime industry, helping the nation respond to disasters and emergencies.

Who the Jones Act Covers?

The Jones Act applies primarily to seamen, but not every maritime worker qualifies. A seaman is a maritime worker whose job connects them to a vessel or fleet of vessels. To qualify under the Jones Act, workers must meet these criteria:  

• Work on a vessel in navigation: The worker must serve on a vessel or a fleet of vessels under common ownership, operating on navigable waters such as oceans, rivers, or large lakes. Fixed platforms or rigs do not meet these criteria.
• Spend significant time on the vessel: To qualify, workers must dedicate at least 30% of their work time to the vessel’s operations or service.
• Contribute to the vessel’s mission: The worker’s duties must meaningfully contribute to the vessel's activities, such as navigation, maintenance, or cargo handling.

The following positions often meet the criteria for seaman status:

• Deckhands: Handle day-to-day operations and maintenance tasks aboard the vessel.
• Cooks: Provide essential services that ensure the crew's well-being and functionality.
• Electricians: Perform repairs and maintain electrical systems critical to the vessel’s operation.
• Engineers: Maintain the mechanical systems that keep the vessel running smoothly.
• Administrative staff: Support the vessel’s mission by contributing to its logistical and operational success.
• Specialized crew members: This includes musicians, entertainers, or healthcare providers aboard specific vessels like cruise ships.

Workers Not Covered by the Jones Act

The following positions typically do not meet the criteria for seaman status under the Jones Act:

• Dockworkers and longshoremen: Employees who primarily work onshore, loading and unloading vessels, do not qualify as seamen since they do not spend significant time on a vessel in navigation.
• Shipyard workers: Individuals engaged in vessel construction, repair, or maintenance at a fixed location are not considered seamen under the Jones Act.
• Offshore platform workers: Workers on fixed platforms, such as oil rigs, are not eligible for seaman status because these structures are not considered vessels in navigation.
• Port-based supervisors and administrators: Personnel who work primarily in port facilities or administrative roles onshore are excluded from seaman status.
• Temporary crew members: Workers who do not have a long-term connection to a vessel or fleet and spend minimal time aboard are unlikely to meet the criteria for seaman status.

Those who do not qualify as seamen are typically covered under other maritime laws, like:

• Longshore and Harbor Workers' Compensation Act (LHWCA): Provides coverage for dockworkers, shipbuilders, and other employees working nearshore.
• State workers' compensation laws: Apply to employees whose roles are primarily based on land or fixed structures like docks and shipyards.

Understanding which workers fall outside the Jones Act’s coverage is essential for ensuring your business has the right insurance solutions in place. At TWFG Khan Insurance, we specialize in designing customized policies that address the unique requirements of maritime operations.

Whether you need coverage under the Jones Act, LHWCA, or state workers’ compensation laws, our access to top-rated carriers and in-depth knowledge of maritime insurance allows us to safeguard your operations effectively while boosting a secure working environment.

What is Included in a Jones Act Claim?

The Jones Act provides a framework to address claims when seamen are injured due to negligence or unsafe conditions.

As a business operating in the maritime industry, you need to understand what a Jones Act claim entails to ensure compliance, manage risks effectively, and support your operations in case of legal challenges.

An injured seaman can pursue compensation for various expenses and losses tied to their injuries. These include:

• Medical expenses: Coverage for hospital stays, surgeries, medications, rehabilitation, and necessary medical equipment.
• Lost wages: Compensation for income lost while recovering from the injury.
• Loss of future earnings: Recovery for reduced earning ability if the injury prevents the seaman from returning to their previous job or any comparable employment.
• Pain and suffering: Compensation for the physical hardships and emotional distress caused due to the injury.
• Long-term care costs: Support for ongoing care needs, such as home modifications, therapy, or nursing assistance.
• Property damage: Reimbursement for personal property damaged during the accident.
• Punitive damages: Additional compensation in cases of gross negligence or willful misconduct.

Types of Claims Under the Jones Act

The Jones Act categorizes claims into four main types available to an injured seaman:  

• Negligence claims: As an employer, you must provide a safe working environment. Failing to meet this responsibility—such as inadequate training, insufficient safety equipment, or hazardous conditions—can result in a negligence claim if an injury occurs.
• Unseaworthiness claims: A vessel used in your operations must be seaworthy, meaning it is fit for its intended purpose with well-maintained equipment and a skilled crew. If the vessel’s unseaworthiness leads to an injury, your business could be held liable.
• Maintenance and cure claims: Injured seamen are entitled to maintenance (daily living expenses) and cure (medical costs) regardless of fault. This obligation continues until the employee fully recovers or reaches maximum medical improvement.
• Wrongful death claims: In the tragic occasion of a fatal accident, the seaman’s family may file a wrongful death claim. This type of claim seeks damages for funeral costs, loss of economic support, and emotional suffering.

Filing a Jones Act Claim

As a business operating within the maritime industry, understanding how to file a Jones Act claim is essential. Here’s what the process typically involves:

• Report the incident immediately: Encourage your employees to report any injuries promptly. As an employer, document the incident thoroughly, including the time, place, and circumstances surrounding the injury. A detailed incident report is a vital component of any claim.
• Provide medical assistance: Offer immediate medical care to the injured worker. Ensuring timely treatment not only prioritizes their well-being but also establishes medical records that are critical for the claims process.
• Conduct an internal investigation: Review the incident carefully to understand its cause. Gather evidence, such as photos of the accident site, witness statements, and maintenance logs of the vessel. This helps determine whether negligence or unseaworthiness contributed to the injury.
• Consult a reputable insurance provider like TWFG Khan Insurance: Partner with experts who understand the complexities of the Jones Act and maritime operations. They can help you navigate claims efficiently and protect your business against potential liabilities.
• File the claim promptly: The Jones Act levies a three-year statute of limitations on filing claims. To avoid legal challenges, ensure all required documentation is prepared and submitted within this timeframe.
• Cooperate during the claims process: As the claim proceeds, provide the necessary support to legal representatives and insurance providers. Transparency and cooperation can streamline the process and reduce delays.

Tips for Businesses to Mitigate Risks

• Regularly inspect and maintain vessels to prevent accidents caused by unseaworthy conditions.
• Provide comprehensive safety training and equipment to employees.
• Maintain clear communication protocols for reporting and addressing hazards.
• Inspect your insurance policies to ensure they align with the risks unique to your operations.

Why Choose TWFG Khan Insurance for Your Jones Act Coverage?

Navigating the intricacies of maritime law, especially the Jones Act, can be daunting for businesses. At TWFG Khan Insurance, we offer specialized insurance solutions designed to address the distinct needs and risks of maritime operations.

Here’s why we are the trusted choice for maritime businesses:

• Expertise in Jones Act coverage: Our team understands the unique challenges of the marine industry, from operational risks to compliance with Jones Act requirements. We use this knowledge to customize your coverage and provide solutions specifically for your business.
• Tailored insurance solutions: Whether you operate cargo vessels, offshore rigs, or passenger fleets, we customize coverage to align with your business needs and safeguard your assets.
• Access to top-rated carriers: Our direct partnerships with leading insurance providers let us offer competitive and reliable policies designed for the maritime industry.
• Risk management guidance: Beyond providing insurance, we help you identify potential vulnerabilities in your operations and recommend proactive measures to mitigate risks.
• Dedicated 24/7 claims support: Filing a Jones Act claim can be complex, but our experienced claims team is available 24/7 to counsel you through the process and ensure a smooth resolution.

At TWFG Khan Insurance, we believe in being more than just a provider—we’re your partner in ensuring the success and resilience of your business. By choosing us, you gain peace of mind knowing your operations are protected by a team that truly understands your industry.

Get a quote with us today, and let’s secure your maritime operations against unforeseen challenges.