Here’s a little health insurance poem:
Know what you’ve got before your forehead gets hot,
Have in place what you need before your ears bleed!
I’m Mark Bononi. Welcome to my ‘ask the expert’ column at Dockwalk.com.
Who provides health insurance, is it the yacht owner?
The answer is, not always. It is your responsibility to make sure you are properly insured either way. Crew benefits are quickly becoming accepted as part of a complete crew compensation package, but if the yacht does not offer it, you’ll need to get your own health insurance.
The yacht owner is not required (yet) to offer health insurance to crew, but watch this space for updates. In the meantime, educate yourself, talk to a knowledgeable insurance broker and get covered.
Yes, if you have an accident while onboard, the owner is obligated to pay for your care, but this is not a substitute for a full-time health plan and offers little peace of mind.
What if crew get hurt or sick while off the vessel or on holiday?
It is typically not the yacht owner’s responsibility if you get hurt while out scuba diving on your day off, or if you get sick because you were snow skiing in the nude. The owner will take care of the liability exposure while you are employed, but it is your responsibility to make sure you have health insurance.
How much should you pay for individual coverage?
Health insurance is available at many different prices and coverage variations. Price is based on age, gender and other factors including coverage area. Regardless of these variables, it is very affordable for crew, especially since it can be customized (to a degree) to fit your budget.
For example, if you are able to fund the first few hundred (USD, Euro, GBP) of medical expenses before the insurance will pay any treatment costs, coverage can be extremely inexpensive. In contrast, if the insurance company pays immediately it will certainly be more expensive. This first amount is called the deductible or excess, and every health policy has one.
Ask a reputable insurance broker for advice specific to your situation and needs. Note that insurance is not designed to pay every expense. Rather, it pays expenses you cannot afford or at least is intended to minimize your chances of being exposed to a large medical bill.
Where should my policy cover me? Does geographic locale matter?
Make sure you have coverage everywhere you might go. Consider carefully whether you should include North America in your coverage. If you find yourself in the Caribbean and are in need of major surgery or an emergency evacuation, you are likely to be transported to Florida.
By the way, most plans require you to notify the insurance company beforehand (or as soon as possible after an emergency) in order to obtain the maximum benefits under the policy when a significant event such as this occurs. Once you have a health policy, it is important to read and understand it before you have to use it.
Trying to figure out which health insurance plan to buy, what amount of coverage to get and who to get it from can be an arduous task for a person to undertake. Please take the time to ‘ask an expert’ before making your decision.
Mark Bononi is the luxury yacht division manager at MHG Marine Benefits. He oversees placement of group and individual health insurance and benefits on superyachts around the world. He is a licensed life and health insurance agent, and a licensed general securities representative in Florida.