Workers Compensation for Marine Repair Businesses: What You Need to Know

Marine repair work is inherently risky. Your employees work with heavy equipment, power tools, hazardous chemicals, and often around water. Workers compensation insurance protects both your employees and your business when workplace injuries occur.

Why Marine Repair Work is High Risk

The marine repair industry faces unique occupational hazards:

- Heavy lifting: Engines, outdrives, and boat components are heavy

• Power tools: Grinders, impact wrenches, and cutting tools cause injuries

• Chemicals: Resins, solvents, paints, and fuel are hazardous

• Electrical work: Marine electrical systems can cause shock injuries

• Working at heights: Falls from ladders and lifts are common

• Water exposure: Drowning risk and slip hazards near docks

  According to industry data, marine service workers have injury rates significantly higher than average occupations.

  Workers Comp Requirements by State

  Workers compensation requirements vary by state, but most states require coverage if you have any employees. Some key points:

  - Most states: Required with 1+ employees

• Texas: Not required but highly recommended

• Owner/officer coverage: May be optional in some states

• Subcontractors: May need to be covered if they don't have their own policy

  Penalties for non-compliance can be severe — including fines, criminal charges, and personal liability for employee injuries.

  What Workers Comp Covers

  Workers compensation provides benefits when employees are injured on the job:

  Medical Expenses

• Emergency room visits

• Hospital stays

• Surgery and procedures

• Physical therapy

• Medications

• Medical equipment

  Lost Wages

• Temporary disability payments (typically 66% of wages)

• Permanent disability if the injury causes lasting impairment

  Death Benefits

• Funeral expenses

• Benefits to surviving dependents

  Employer Protection

• Protection from employee lawsuits for covered injuries

• Legal defense if claims are disputed

  How Premiums are Calculated

  Workers comp premiums for marine repair businesses are based on:

  Classification Codes

Marine repair typically falls under codes like:

• Boat Building or Repair: Higher rates due to risk

• Engine Installation/Repair: Moderate rates

• Marina Operations: Varies by activities

  Experience Modification Rate (EMR)

Your claims history affects your premium. An EMR of:

• 1.0 = Average for your industry

• Below 1.0 = Better than average (premium discount)

• Above 1.0 = Worse than average (premium surcharge)

  Payroll

Premiums are calculated as a rate per $100 of payroll. Higher payroll = higher premium.

Reducing Your Workers Comp Costs

You can control workers comp costs through safety and smart practices:

Safety Programs

• Written safety policies and procedures

• Regular safety training sessions

• Personal protective equipment requirements

• Tool and equipment maintenance schedules

  Injury Management

• Return-to-work programs for injured employees

• Light duty assignments when possible

• Prompt injury reporting and treatment

• Working with your insurance company on claims management

  Classification Review

Make sure your employees are correctly classified. If some employees do office work or sales, they may qualify for lower-risk classifications.

Shop Around

Workers comp rates vary between insurers. An independent agent can compare quotes from multiple carriers.

Common Claims in Marine Repair

Understanding common injuries helps you prevent them:

1. Back injuries: Lifting heavy components improperly 2. Lacerations: Cuts from tools, fiberglass, or metal 3. Eye injuries: Flying debris, chemical splashes 4. Respiratory issues: Inhalation of dust, fumes, or chemicals 5. Falls: From ladders, lifts, or slippery surfaces 6. Crush injuries: Dropped components, forklift accidents

The Cost of Not Having Coverage

Operating without workers comp is a gamble that rarely pays off:

- State fines: Can reach thousands of dollars per day

• Personal liability: You're responsible for all employee medical bills

• Lawsuits: Employees can sue you directly without workers comp protection

• Stop-work orders: Some states can shut down your business

  Even a moderate injury can result in $50,000+ in medical bills and lost wages. A severe injury can exceed $500,000.

  Getting the Right Policy

  When shopping for workers comp, look for:

  - Specialized insurers: Companies that understand marine businesses

• Pay-as-you-go options: Premium payments based on actual payroll

• Risk management services: Help with safety programs and claims management

• Competitive rates: Compare multiple quotes

  Protect Your Team and Your Business

  Your employees are your most valuable asset. Workers compensation protects them when injuries happen and protects your business from devastating financial liability.

  Call us at (844) 967-5247 to get competitive workers comp quotes for your marine repair business, or request a quote online.