What Is the Jones Act? A Guide for Yacht Owners

The Jones Act, formally known as the Merchant Marine Act of 1920, is one of the most critical pieces of legislation in U.S. maritime law. While you may have heard this term within shipping, boating, or insurance discussions, understanding its wide-reaching implications is essential, especially if you’re a yacht owner or maritime professional with captain/crew exposures.

Below, we explore key aspects of the Jones Act to help you understand your obligations, protect your crew, and ensure compliance with this federal law.

If you’re a yacht owner looking to ensure comprehensive protection for your vessel and crew, we invite you to contact our marine insurance advisors. They can provide a tailored yacht insurance quote with crew coverage, ensuring you have the proper protection.

What Is the Jones Act?

The Jones Act is a federal law designed to protect U.S.-flagged vessels, their operators, and their crews. It governs coastwise trade and establishes specific requirements for ships operating between U.S. ports or conducting domestic trade. It was enacted by the U.S. Congress to stimulate the shipping industry in the wake of World War I.

Here are some basic principles of the law:

• U.S.-built ships must transport goods or passengers between U.S. ports.
• Companies operating under the Jones Act must employ U.S. citizens or permanent residents.
• The Act prioritizes the interests of the American Merchant Marine and national security in a global shipping industry.

For yacht owners, one of the most critical aspects of the Jones Act is its focus on safety and working conditions for maritime workers. Let’s take a closer look at how this legislation can impact your responsibilities as a yacht owner.

1. Captain/Crew Protections

The Jones Act provides workers with necessary legal rights, including your yacht’s captain and crew. If a crew member sustains injuries while working on your vessel, they have the right to file claims for compensation. These claims often include damages for medical expenses, lost wages, and even pain and suffering.

If your captain or crew members feel unsupported, their dissatisfaction could escalate into legal claims. Protecting your crew isn’t just about compliance—it’s about preserving harmony and professionalism aboard your vessel.

Key Tip: Make sure your insurance policy provides comprehensive captain/crew coverage to meet these obligations.

2. Liability and Negligence

Under the Jones Act, yacht owners can be held responsible for injuries caused by negligence or unsafe conditions on board. This means it’s your responsibility to:

• Ensure proper safety measures are in place.
• Conduct routine inspections for potential hazards.
• Maintain your vessel’s overall seaworthiness.

Failing to operate a safe and secure yacht puts your crew at risk and exposes you to expensive legal claims.

Insurance Tip: Many yacht insurance policies offer liability protections to reduce financial risks from negligence claims. Speak to a marine insurance professional to ensure your yacht’s policy includes this crucial coverage.

3. Maintenance and Cure

One of the essential provisions of the Jones Act is the requirement to provide “maintenance and cure” for injured crew members.

• Maintenance covers the crew member’s daily living expenses while recovering.
• Cure pays for their medical treatment until they reach maximum medical improvement (MMI).

This obligation applies regardless of fault, so even if the crew member’s injury wasn’t caused by negligence, as a yacht owner, you’re still responsible. Coverage for maintenance and cure claims helps ensure your yacht operation remains financially sustainable in the event of crew injuries.

4. Obligation to Provide Captain/Crew Coverage

Providing comprehensive insurance coverage for your captain and crew isn’t optional—it’s a legal and moral obligation.

This coverage should include protection for:

• Injury due to negligence
• Claims about safety in the work environment
• Claims for lost wages, pain and suffering, or disability
• Maintenance and cure obligations
• Third-party passenger liability, if applicable

By ensuring proper insurance coverage, you safeguard your crew’s well-being and protect your financial interests.

Proactive Measure: Consult an experienced marine insurance provider to create a policy tailored to your yacht’s unique needs.

5. Jones Act Requirements for Vessels

While the Jones Act primarily applies to commercial vessels, its focus on crew protections and overall safety extends to yacht owners with captain and crew exposures.

Additionally, the law emphasizes adherence to coastwise laws, such as hiring U.S. citizens or permanent residents as crew members. Special cases like transporting goods or docking in Puerto Rico, Hawaii, Alaska, or along coastlines may invoke specific Jones Act rules.

Yacht owners must take these regulations seriously to avoid non-compliance.

6. Seaworthiness Requirement

The Jones Act includes an implied warranty of seaworthiness, meaning that as a yacht owner, you are obligated to ensure that your vessel is reasonably fit for its intended use. This includes keeping the vessel safe for the captain/crew to work on.

If a captain/crew member is injured due to the vessel’s unseaworthiness, they may have grounds to file a negligence claim for which the yacht owner would be liable. In some instances, a judgment could be placed against the vessel itself.

7. Economic and Security Implications

The Jones Act is a central piece of legislation for protecting the rights and safety of U.S. maritime workers, including your yacht’s captain/crew. The Act maintains a robust and regulated maritime workforce, thus supporting the domestic maritime industry overall. Ensuring compliance and understanding your responsibilities under the Jones Act helps you provide a safe and secure environment for your captain/crew while minimizing potential liabilities.

8. Consequences of Not Providing Coverage

Failing to meet your obligations as stipulated under the Jones Act can result in:

• Costly lawsuits from crew members seeking compensation.
• Personal liability, with significant out-of-pocket expenses.
• Consequences that may financially jeopardize your vessel’s operation.

By understanding your responsibilities and securing robust insurance coverage, you can avoid these penalties while fostering trust and security among your crew.

Secure Your Vessel’s Future

Interested in learning more about how the Jones Act applies to your yacht? W3 Insurance’s team of marine insurance experts is here to help. Contact us today for a consultation and customized yacht insurance quotes that meet your needs.

This overview is intended for informational purposes only and should not be considered legal advice. For specific legal guidance, please consult a qualified attorney familiar with maritime law. Founded in 1925, WWW Insurance has a rich history of providing quality service and an unwavering commitment to its clients and community.

FAQs about the Jones Act

What Is the Jones Act in Simple Terms?

The Jones Act, also known as the Merchant Marine Act of 1920, sets requirements for U.S. vessels and protects maritime workers, enabling them to seek compensation for on-the-job injuries.

Who Benefits from the Jones Act?

The Act benefits U.S. maritime workers, including captains and crew members. It also supports national security by safeguarding domestic shipping and strengthening the U.S. merchant fleet.

Is the Jones Act Applicable in Puerto Rico?

Yes, the law applies to Puerto Rico, restricting non-U.S.-flagged ships or foreign-flag vessels from transporting goods between U.S. and Puerto Rican ports.

Can the Jones Act Be Waived?

A waiver of the Jones Act can be granted during national emergencies or times of war, but these waivers are temporary and subject to conditions set by Homeland Security. Requests for waivers of specific provisions of the Act are reviewed by the U.S. Maritime Administration (MARAD) on a case-by-case basis.

Why Is the Jones Act Controversial?

Critics argue that the Act increases shipping costs by requiring goods to be transported on U.S.-owned and operated vessels, limiting competition from foreign ships in the U.S. economy. However, supporters view it as vital for protecting national security and the U.S. maritime industry.