What is United States Longshore and Harbor Workers Compensation Act?
The United States Longshore and Harbor Workers Compensation Act (USL&H or LHWCA) is a federal law providing workers’ compensation benefits to certain maritime workers injured on navigable waters or in adjoining areas like docks, wharves, and shipping terminals. This insurance is designed to cover medical care, disability payments, and rehabilitation services for employees who suffer work-related injuries or occupational diseases.
Unlike standard workers' compensation policies, USL&H insurance addresses the unique liability exposures found in maritime and waterfront operations. It ensures compliance with federal requirements for employers with qualifying employees working near or on the water.
Who Needs It
Businesses that employ individuals who work around docks, piers, shipyards, or engage in maritime construction may be required to carry USL&H coverage. This includes marine contractors, ship repair companies, stevedoring operations, and even some waterfront warehouse operators. If your workforce operates near navigable waters and is not covered by traditional state workers' compensation, you may fall under the LHWCA.
Organizations such as vessel repair contractors or freight handling companies often seek this coverage to protect against workplace injury claims and meet federal obligations.
What it Typically Covers
USL&H insurance generally covers:
- Medical expenses related to work injuries or occupational diseases
- Temporary or permanent disability benefits
- Vocational rehabilitation services
- Survivor benefits in the event of a fatal injury
For example, if a worker slips while loading cargo and suffers a back injury, USL&H coverage would help pay for their treatment and lost wages during recovery. This coverage complements other forms of protection such as commercial liability or marine general liability policies, which manage broader operational risks.
Common Exclusions or Limitations
USL&H policies do not cover all maritime exposures. Crew members of vessels, for instance, are typically excluded and fall under separate protection like the Jones Act. Additionally, injuries unrelated to work or caused by intoxication or willful misconduct may not be covered. Coverage limitations may also apply to clerical employees or those working exclusively on land.
Factors that Influence Cost
Several underwriting factors affect premium costs for USL&H insurance, including:
- Type of maritime work performed
- Payroll size and number of covered employees
- Loss history and claims experience
- Risk management practices and safety protocols
High-risk operations, such as shipbreaking or high-volume cargo handling, typically lead to higher premiums due to increased job-site hazards and injury potential.
Proof of Insurance & Compliance
Employers must show proof of USL&H coverage to comply with federal labor laws when applicable. This is often required during contract bidding or regulatory inspections. Failing to carry proper coverage can result in significant penalties and legal exposure if a workplace injury occurs.
How to Get a Quote
If your business operates near navigable waters and employs workers in maritime roles, it’s important to determine whether USL&H coverage applies. Our specialists can help assess your risk profile and provide a tailored quote. Protect your team and stay compliant—request a quote today.
To learn more about this type of insurance, visit our pages on US Longshore and Harbor Workers' Compensation Act Insurance and US Longshore and Harbor Workers Service and Repair Contractors Insurance for specialized coverage options.
Frequently Asked Questions
What types of employees are covered under USL&H insurance?
It covers maritime workers such as longshoremen, shipbuilders, and dock workers who are injured while working on navigable waters or nearby facilities.
Is USL&H coverage required for all businesses near water?
No, it depends on the type of work performed and employee roles. Only certain maritime positions are subject to the Act's requirements.
Can USL&H be combined with state workers' compensation?
Yes. In some cases, employers may need both USL&H and state workers' compensation to fully protect their workforce and meet legal obligations.
Does USL&H cover accidents on ships?
Not typically. Crew members of vessels are usually covered under the Jones Act rather than the USL&H Act.
How can I find out if my business needs this insurance?
Consult an insurance professional or broker familiar with maritime operations to evaluate your exposure and regulatory responsibilities.
Still have questions? Talk to a local insurance expert.