Cruise Ship Lawsuits on the Rise: How Liability Insurance Keeps Operators Afloat

Cruise ships represent some of the most complex businesses in the world. They function as floating resorts, international workplaces, and heavily regulated enterprises. These vessels face significant risks, liabilities, and compliance challenges daily—whether at sea or ashore.

With thousands of employees, millions of passengers, and constant media scrutiny, cruise lines must prepare for legal risks across multiple fronts. Recent cruise ship lawsuits have underscored just how costly those risks can be and why business and management liability insurance is essential.

[Rahn & Associates](https://www.rahn-associates.com/, an independent insurance broker that specializes in providing customized marine insurance policies, discusses the recent headlines and critical coverages for cruise lines and operators.

Why Lawsuits Are on the Rise in the Cruise Industry

Larger vessels, more passengers and crew, and stricter global regulations have all contributed to the recent rise in lawsuits. Passenger injuries remain the leading cause of claims, followed by onboard crime and employment-related disputes.

Cruise Ship Liability Risks Require Specific Business & Maritime Insurance Coverages

The world’s largest cruise ships now carry up to 7,600 passengers and over 2,300 crew members. This is more than triple the capacity compared to early 2000s vessels. Meanwhile, global cruise passenger numbers have more than doubled over the past few decades, growing at around 7% annually.[i] These factors bode well for the industry but also clearly raise the stakes for cruise ship operators.

Making recent headlines, a passenger aboard Royal Caribbean’s Icon of the Seas suffered severe harm when a water slide panel shattered mid-ride. The passenger has since filed a lawsuit, sparking industry-wide conversations about cruise ship safety and liability. This most recent case serves as a reminder that one incident can quickly escalate into a legal and reputational crisis—with millions in potential damages.

According to recent data from the Department of Transportation, crime aboard U.S.-departing cruise ships reached a two-year high in Q1 2025, with 48 reported serious incidents.[ii] This spike underscores the growing exposure operators face—not just from guest injuries, but from serious onboard incidents that often lead to litigation and public scrutiny.

Key Coverages for Cruise Lines and Operators

Cruise lines need various business and management liability insurance coverages to protect against lawsuits that could otherwise cause major financial strain. Below are the most essential:

• Directors & Officers (D&O) Insurance – Protects executives and board members from lawsuits tied to compliance failures, safety decisions, or shareholder disputes.

• Employment Practices Liability (EPLI) – Covers claims from crew members, including wrongful termination, harassment, or discrimination.

• Professional & General Liability Insurance – Safeguards against passenger injury claims, vendor disputes, and operational negligence.

• Cyber Liability Insurance – Essential as cruise lines store passenger data, manage booking systems, and provide onboard Wi-Fi—making them prime targets for hackers.

  
  

FAQs

The Importance of Specialized Insurance Solutions

In the cruise industry, specialized insurance solutions are crucial. The complexities of operating a cruise line require tailored coverage that addresses unique risks. Standard insurance policies may not adequately cover the specific liabilities faced by cruise operators.

Cruise lines must consider the potential for significant financial losses due to lawsuits. The costs associated with legal defenses, settlements, and reputational damage can be staggering. Therefore, investing in comprehensive insurance coverage is not just prudent; it is essential for long-term sustainability.

How Rahn & Associates Protects the Cruise Industry

At Rahn & Associates, we specialize in insurance solutions for highly regulated industries, including the global maritime sector. Our team understands the unique risks cruise operators face—from complex liability exposures to multinational crew employment issues. We work directly with brokers, insurers, and cruise line executives to deliver tailored business and management liability programs that safeguard both operations and leadership.

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Conclusion

In conclusion, the cruise industry is navigating a landscape filled with complex risks. As lawsuits rise, the need for specialized insurance coverage becomes more critical. Cruise lines must prioritize their risk management strategies to protect their operations and reputations. By partnering with experts like Rahn & Associates, cruise operators can secure the tailored insurance solutions they need to thrive in this challenging environment.

[i] Global Cruise Passengers Carried and Annual Growth Rates. Port Economics, Management and Policy. https://porteconomicsmanagement.org/pemp/contents/part7_1/ports-and-cruise-shipping/global-cruise-passengers-carried-rates/

[ii] Cruise Ship Crime Rates Reach High for Second Consecutive Year; Experts Warn — How Leesfield Partners Has Routinely Represented Passengers (August 2025), Cruise Ship Lawyers Blog. https://www.cruiseshiplawyersblog.com/cruise-ship-crime-rates-reach-high-for-second-consecutive-year-experts-warn-how-leesfield-partners-has-routinely-represented-passengers/