Class Code: 7394

Per NCCI's Scopes Code Description:

Code 7394 encompasses operations conducted on waters subject to Admiralty jurisdiction. Please refer to the note at the end of this scope for a general explanation of the Admiralty Law. The classification includes divers and deck hands or other “diving tender” support personnel who assist in diving activities such as line handlers and pump persons. Diving support personnel, be they located on a vessel or on shore, are included within the scope of this classification. Crews of vessels with divers aboard are classified under the appropriate vessel classification.

Risks engaged in the business of providing lifeguards, swimming instruction and diving instruction are assigned to Code 9015 and/or one of the following Admiralty classifications: Codes 7394, 7395 and 7398. An Admiralty Law classification is applicable when a determination is made that employees engaged in the described operations are deemed to be “crew members” covered under Admiralty Law and coverage under this law is added to a policy. The determination as to whether or not Admiralty Law coverage is necessary for an insured is not made by NCCI.

This classification contemplates operations of companies engaged in cleaning oil spills, provided the clean-up activities are conducted on navigable waters. The operation includes encircling the oil to keep it confined and pumping it into holding tanks aboard the boat.

In the event that both diving and construction work are performed at the same job by the same employee, no division of payroll is permitted and the highest rated classification is used.

Marine wrecking operations are within the scope of this classification. The term “marine wrecking” includes dismantling and/or scrapping vessels while the vessel is in the water. These operations may include the use of cutting torches to burn and remove pieces of metal from other sections. These “pieces,” which may weigh thousands of pounds, are then removed by a crane or derrick located on the shore. Other employees, such as carpenters, also may be on the vessel removing wooden fixtures or other salvageable parts. A permanent yard maintained by a marine wrecking company is included under this classification.

Additional operations to be included in Codes 7394, 7395 and 7398 are underwater demolition experts; installers of underwater oil or gas flow lines from drilling rigs to production platforms; companies engaged in the prevention of oil spills from a berthed vessel prior to and during the unloading of oil; and diving activities in connection with sewer construction, underwater mining and sweeping operations.

Note:  The following is a general explanation of the Admiralty Law and a description of Coverage Programs that pertain to this classification.

Admiralty Law:

Masters and members of the crews of vessels are not covered under state workers compensation laws nor under the USL&HW Act. They are subject to Admiralty Law and, if injured, have the right to sue their employers for damages in the Admiralty Courts where the proceeding is in the nature of an employers liability suit. They also have the right to transportation, wages, maintenance and cure. Such seamen are subject to a federal law, the Merchant Marine Act of 1920, known as the Jones Act (46 U.S. Code, Section 688, 1970) which applies the provisions of the Federal Employers’ Liability Act to seamen. Every person employed on board a vessel is deemed to be a seaman if connected with the operation or welfare of the vessel while in navigable waters. Usually, navigable waters are defined as those which form a continuous highway for interstate or international commerce.

Coverage Programs:

Program I—provides, under Part One—Workers Compensation Insurance, statutory liability under the workers compensation law of any state designated in Item 3.A of the Information Page and, under Part Two—Employers Liability Insurance, employers liability for damages under Admiralty Law, subject to a standard limit as shown in the Basic Manual.

Program II—provides the same coverage as Program I, but with the addition of Voluntary Compensation. Under Program II, the insurance carrier will offer a settlement of a claim strictly in accord with the statutory benefits provided in the workers compensation law designated in the voluntary compensation endorsement attached to the policy as if the claim were subject to such law, instead of subject to the laws of negligence. If the offer of settlement is rejected, employers liability then applies to such claim or suit, with the same standard limit as for Program I.

State Addendum
Massachusetts

An Admiralty Law classification is applicable when a determination is made that employees engaged in the described operations are deemed to be “crew members” covered under Admiralty Law and coverage under this law is added to a policy. The MA Bureau does not make the determination as to whether or not Admiralty Law coverage is necessary for an insured.

Coverage Programs:

Program I—provides, under Part One—Workers Compensation Insurance, statutory liability under the workers compensation law of any state designated in Item 3.A of the Information Page and, under Part Two—Employers Liability Insurance, employers liability for damages under Admiralty Law, subject to the standard limit as shown in the MA Manual Rule XIII-D.1.

Program II—provides the same coverage as Program I, but with the addition of Voluntary Compensation. Under Program II, the insurance carrier will offer a settlement of a claim strictly in accord with the statutory benefits provided in the workers compensation law designated in the voluntary compensation endorsement attached to the policy as if the claim were subject to such law, instead of subject to the laws of negligence. If the offer of settlement is rejected, employers liability then applies to such claim or suit, with the same standard limit as for Program I.

Rate per $100. of Renumeration: $ 2.22

Construction Exemption Required: No