Why You Should Always Report Your Injury in the Oilfield or on a Vessel

If you’ve been hurt working in the oilfield or on a vessel, here’s something many workers may not know: your employer may have a strong financial incentive to keep your injury off the books, and they may be using “taking care of you” as the cover story.

Why Your Employer Doesn’t Want to Report Your Injury

It’s called avoiding a “lost time accident.” Instead of formally reporting the injury, the company sends you home to rest and recover, sometimes even continuing to pay your regular wages while you’re out. On the surface, it can look generous. In some situations, it may be a business decision that results in the injury not being formally documented. Here’s why:

• Paperwork and regulatory scrutiny. A reportable injury triggers mandatory filings with the U.S. Coast Guard for vessel-based injuries, or with the Bureau of Safety and Environmental Enforcement (BSEE) for platform injuries. Some companies may prefer to avoid the additional reporting requirements associated with those filings.
• Protecting the relationship with the oil company. Most workers on a platform or vessel work for a vendor or contractor, not the oil company itself. The oil company tracks injury rates for every vendor it hires. A reported injury may affect that record and could influence future contract opportunities. This may influence how some vendors respond when workplace injuries occur.
• Avoiding the deductible. Many of these companies carry large self-insured retentions (SIRs), which function much like large deductibles that must be paid out of pocket before insurance coverage kicks in. In some situations, it may be less expensive for the company to quietly pay an injured worker’s wages for a few weeks than to trigger that deductible and the insurance claims process.

The result: injuries may go unreported, and the worker, who may have a claim under the Jones Act, LHWCA, 905(b), Third Party Claim, or General Maritime law — never gets the medical treatment, documentation, or the opportunity to pursue compensation that may be available under the law.

Even the Insurance Company Isn’t Happy About It

You’d think the insurance company would be on the same team as the employer here — after all, the company is trying to avoid making a claim. But in my experience taking depositions of insurance adjusters, that’s often not the case.

When an injury is hidden or mishandled early on — no timely medical care, no proper reporting, no claim opened — it frequently comes back to bite the insurer later. Workers’ compensation, the Jones Act, and the LHWCA all carry penalty provisions for failing to properly and timely provide medical treatment to an injured worker. When I depose the adjuster, some have expressed frustration: the employer’s decision to “handle it informally” instead of reporting the injury and opening a claim can expose the insurance carrier to penalties it never needed to pay.

In other words, the very practice that’s supposed to protect the company’s loss record ends up creating a different problem — one the insurance company may not have anticipated. This is part of why documentation matters so much after an oilfield or maritime injury. The earlier a claim is properly opened and treatment is properly authorized, the less room there is for these penalty disputes, and the more protected you may be as the injured worker.

While You Stay Quiet, They’re Building Their Case

Here’s what often happens behind the scenes while an injured worker is “resting up” at home: the company is already taking witness statements, documenting the scene from their perspective, and preparing whatever incident reports they may eventually be required to file. None of it captures what actually happened to you, how it happened, or your side of the story.

By the time the case reaches litigation, the gap shows. Defense attorneys may argue that the worker wasn’t really injured, pointing to the fact that the worker didn’t see a doctor right away, didn’t report it immediately, or didn’t document the scene. Delays in reporting or seeking treatment may later become an issue during the claim process.

Protect Yourself. Here’s How.

• Report the injury immediately. Don’t let anyone discourage you from properly reporting the injury.
• Get medical treatment right away. A delay in seeking care is one of the first things the defense will use against you.
• Document everything yourself. If you have your phone, take photos and video of what you believe caused the injury, including the equipment, the condition of the deck or platform, anything relevant to how it happened.
• Write down your own account of the incident as soon as possible, while the details are fresh, in your own words.

The company will have their version on record. Make sure yours is too.

If you’ve been injured in the oilfield or while working on a vessel, consider speaking with an oilfield attorney about your legal rights. Contact our office for a free consultation to discuss your rights and options.

Rusty Galloway | Galloway Jefcoat, LLP | Lafayette, Louisiana