What is US Longshore and Harbor Workers Service and Repair Contractors Insurance?
US Longshore and Harbor Workers Service and Repair Contractors Insurance is specialized coverage designed to protect businesses and contractors working on or near navigable waters. It typically applies to those who service, repair, or maintain vessels, docks, piers, and other marine-related structures. This insurance helps meet federal requirements under the Longshore and Harbor Workers’ Compensation Act (LHWCA), which mandates benefits for certain maritime employees injured on the job.
Who Needs It
This insurance is essential for contractors and businesses that perform work on vessels or near water, including:
- Marine equipment repair companies
- Ship and boat repair contractors
- Dock and pier maintenance crews
- Welding or electrical contractors working in harbor areas
- Equipment handling or rigging services near ports
Even if your employees do not go offshore, working adjacent to navigable waters may still require this coverage under federal law.
What It Typically Covers
This insurance generally includes:
- Medical expenses and disability benefits for injured employees under LHWCA
- Lost wages due to job-related injury or illness
- Legal defense costs related to workplace injuries
- Employer liability for claims not covered by standard workers’ comp
It helps protect both the employer and employees by ensuring proper benefits are available in the event of a qualifying injury.
Common Exclusions and Limitations
Like most insurance policies, this coverage has certain exclusions and limitations. Common exclusions may include:
- Injuries that are self-inflicted or caused by intoxication
- Claims from independent contractors (unless separately covered)
- Damages to property or liability unrelated to employee injury
- Non-maritime job functions not covered under LHWCA
Always review your policy with a licensed insurance professional to understand specific terms and limitations.
Factors That Influence Cost
The cost of Longshore and Harbor Workers insurance depends on several factors, including:
- Type of work performed and associated risk level
- Number of employees covered
- Annual payroll and location of operations
- Loss history and safety practices
Each business is unique, so premiums will vary based on your specific risk profile.
Proof of Insurance & Compliance
Businesses subject to the LHWCA must demonstrate proper insurance coverage to stay compliant. Proof of insurance may be required by clients, port authorities, or government agencies. Failure to carry appropriate coverage can result in fines or legal liability. Requirements vary by state and work location, so it's important to consult with an insurance provider familiar with maritime operations.
How to Get a Quote
To protect your business and meet federal requirements, request a customized quote for Longshore and Harbor Workers Service and Repair Contractors Insurance. Get started here.
Related Coverages
Frequently Asked Questions
What is the Longshore and Harbor Workers’ Compensation Act (LHWCA)?
The LHWCA is a federal law that provides compensation and medical care to employees injured while working on or near navigable waters, excluding those covered by standard workers’ compensation laws.
Is this insurance required by law?
Yes, if your business employs workers covered under the LHWCA, you're required to carry this insurance to remain compliant with federal regulations.
How is this different from standard workers’ comp insurance?
Standard workers’ comp typically doesn’t cover maritime employees. Longshore insurance fills this gap by covering injuries that occur in maritime settings, even if they’re onshore but near water.
Can general liability insurance replace this coverage?
No. General liability does not cover employee injuries or fulfill LHWCA requirements. Separate coverage is needed for proper protection and compliance.
What happens if I don’t carry the required coverage?
Operating without required insurance can lead to legal penalties, claims denial, and personal liability for workplace injuries. It’s essential to maintain proper coverage.
Still have questions? Talk to a local insurance expert.