Arthur J Gallagher has warned that a recent court decision could leave a coverage gap in some marine insurance policies.
 
The federal court decision in the case of Samson Marine v Aucote has impacted the Seafarers Rehabilitation and Compensation Act which has now been expanded to include voyages within state territorial waters alongside interstate voyages.
 
AJG warns that the change could result in a gap in some marine insurance policies and is asking brokers and customers to check their policy wording to ensure they are covered.
 
“Owners, operators and employers who employ people on a vessel registered in Australia, undergoing interstate voyages and intrastate voyages where most of the crew are Australian residents, may be affected by this change,” the company said in a statement.
 
“Owners, operators and employers should be aware of their obligations to compensate employees for injuries they sustain during their employment on seafaring vessels.

"This change may give rise to a new, additional liability.”
 
AJG also recommended that boating business owners review their business activity and to check with Seacare to see if they are valid for an exemption.