What is US Longshore and Harbor Workers Compensation Large Account Program Insurance?
US Longshore and Harbor Workers Compensation Large Account Program Insurance is a specialized type of workers’ compensation coverage designed for businesses with significant payroll exposure in maritime activities. This insurance helps protect employers from the financial risks associated with workplace injuries or illnesses that occur in navigable waters or on adjoining areas like docks, piers, and terminals. It is governed by the Longshore and Harbor Workers’ Compensation Act (LHWCA), a federal law that provides benefits to certain maritime workers who are not covered by state workers’ compensation laws.
Who Needs It
This coverage is essential for companies that employ workers in maritime environments, especially those involved in:
- Loading and unloading vessels
- Shipbuilding, shipbreaking, or ship repair
- Dredging operations
- Marine construction
Large employers with multiple worksites or complex operations near water are typically candidates for a large account program, which offers customized coverage and risk management solutions.
What It Typically Covers
This insurance generally covers:
- Medical expenses for job-related injuries or illnesses
- Temporary and permanent disability benefits
- Rehabilitation services
- Death benefits for surviving dependents
Coverage applies to incidents occurring on navigable waters or areas used for maritime employment, as defined by the LHWCA.
Common Exclusions and Limitations
While coverage is broad, there are some exclusions, such as:
- Injuries resulting from intoxication or willful misconduct
- Employees who are covered under state workers’ compensation laws
- Office or administrative staff not engaged in maritime work
Each policy may have specific terms, so it’s important to review the details with your insurance provider.
Factors That Influence Cost
The cost of this insurance depends on several factors, including:
- Total payroll and number of maritime employees
- Nature of work performed and associated risks
- Claims history and safety record
- Geographic location of operations
- Program structure and coverage limits
Proof of Insurance & Compliance
Employers must provide proof of coverage to meet federal requirements under the LHWCA. Failure to maintain coverage can result in penalties and legal exposure. While requirements may vary by state, the federal law applies to qualifying maritime operations nationwide. Be sure to consult with a licensed insurance professional to ensure compliance.
How to Get a Quote
To explore coverage options tailored to your business, start by requesting a quote from our team. We’ll help you find a program that suits your needs and supports compliance with maritime labor laws. Get a quote.
Frequently Asked Questions
Who is covered under the Longshore and Harbor Workers’ Compensation Act?
Maritime workers engaged in shipbuilding, longshoring, or harbor work who are not covered by state workers’ comp laws are typically covered under the LHWCA.
Does this insurance cover workers on land?
It covers workers on navigable waters and adjoining areas like piers and docks, but not those whose work is strictly land-based and non-maritime.
How is this different from standard workers’ compensation?
This insurance is federally mandated and applies specifically to maritime workers, whereas standard workers' comp is governed by state laws and may not apply to maritime roles.
Can I combine this coverage with other business policies?
Yes, many insurers offer package options that include maritime coverage alongside general liability and property insurance.
What should I do if I hire new workers for maritime operations?
You should notify your insurance provider to update your policy and ensure all eligible workers are properly covered under the law.
Still have questions? Talk to a local insurance expert.