What is Small Account Program US Longshore and Harbor Workers Compensation?
The Small Account Program for US Longshore and Harbor Workers Compensation provides specialized workers’ compensation coverage for businesses with maritime exposure. This insurance is designed to meet the requirements of the Longshore and Harbor Workers’ Compensation Act (LHWCA), which mandates coverage for employees working on or near navigable waters in the United States. The program is tailored for smaller operations that need to comply with these federal requirements but may not qualify for standard maritime insurance programs.
Who Needs It
This coverage is essential for businesses with workers involved in maritime activities, including:
- Dock and pier workers
- Shipbuilders or repair technicians
- Marine construction companies
- Stevedoring and cargo handling services
- Businesses operating near navigable waters with incidental maritime exposure
Even if your business only occasionally performs maritime-related tasks, you may still be required to carry this type of insurance to remain compliant with federal law.
What It Typically Covers
The policy typically covers medical expenses, wage replacement, and rehabilitation costs for workers injured while performing maritime duties. It may also provide death benefits to dependents in the event of a fatal workplace incident. Coverage extends to injuries that occur while loading or unloading vessels, working on docks, or performing tasks related to ship maintenance and repair.
Common Exclusions and Limitations
While coverage is broad, there are limitations. Common exclusions include:
- Injuries to crew members of vessels (covered under the Jones Act instead)
- Injuries outside the scope of employment
- Intentional self-harm or substance abuse-related incidents
- Employees not classified under the LHWCA
Policy terms vary by provider, so it’s important to review specific exclusions before purchasing coverage.
Factors That Influence Cost
Several factors affect the cost of a Small Account Program US Longshore and Harbor Workers Compensation policy:
- Number of employees and payroll size
- Type of maritime work performed
- Claims history and safety record
- Geographic location
- Duration and frequency of maritime exposure
Insurers will evaluate these details to determine the appropriate premium for your business.
Proof of Insurance & Compliance
Businesses subject to LHWCA must provide proof of coverage to demonstrate compliance with federal regulations. Certificates of insurance are typically required when bidding on contracts or renewing business licenses. Requirements may vary by state or municipality, so consult with a licensed insurance agent familiar with maritime regulations in your area.
How to Get a Quote
Getting coverage through the Small Account Program is straightforward. Work with an experienced insurer who understands maritime risks and compliance needs. Get a quote today to protect your business and meet federal requirements.
Frequently Asked Questions
Who is covered under the Longshore and Harbor Workers Compensation Act?
Employees engaged in maritime work near navigable waters, such as dockworkers, shipbuilders, and cargo handlers, are typically covered under the LHWCA.
Can I use standard workers’ compensation instead?
No. If your employees meet LHWCA criteria, standard workers’ compensation may not satisfy federal requirements. Specialized coverage is necessary.
Is this coverage only for large businesses?
No. The Small Account Program is designed specifically for small businesses with limited but qualifying maritime exposure.
What happens if I don’t carry this insurance?
Failing to carry required coverage could result in fines, legal liability, or being barred from maritime contracts.
Does this policy cover part-time or seasonal workers?
Yes, if they perform qualifying maritime duties under the LHWCA, they should be covered regardless of employment status.
Still have questions? Talk to a local insurance expert.