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$5,000 Minimum Premium for Diving Contractors:
⚓️ Shipbuilders ⚓️ Ship Repairers ⚓️ Marine Terminal Operators ⚓️ Stevedores ⚓️ Marine Contractors ⚓️ Marine Artisans ⚓️ And other waterfront employers! |
United States Longshore and Harbor Workers Coverage (USL&H)
Where Does The USL&H Act Apply?
For a claim to be within the jurisdiction of the USL&H Act, the accident must have occurred on or adjacent to navigable waters of the United States. This is often referred to as meeting the “situs test.”
Who is Subject to the USL&H Act?
Employers who have employees engaged in full or part-time maritime employment are subject to the USL&H Act. The term “employee” means any person engaged in maritime employment, including any longshoreman or other person engaged in long-shoring operations, and any harbor worker including a ship repairman, shipbuilder, and ship-breaker. Generally, the following types of employees are excluded if they are covered by a state workers’ compensation law:
Possible USL&H Maritime Employments
The USL&H Act provides workers’ compensation coverage to land-based maritime employees, while the Jones Act provides tort remedies to sea-based maritime workers. There are many additional situations involving possible coverage under the USL&H Act. Some of the more frequent are:
Casual visitors on vessels: Casual business visitors are generally subject to state workers’ compensation laws. Other visitors, employed by a maritime employer, who make frequent trips to vessels or maritime sites to transact business may be covered by the USL&H Act. These include:
Dredging operations: Historically, injuries to persons employed in dredging operations have been compensable under the USL&H Act when such operations are carried out in navigable waters. However, under certain circumstances, injured workers may be able to pursue Jones Act remedies when dredging is conducted from a vessel in navigation.
Maritime construction: Injuries to persons employed in marine construction are generally compensable under the USL&H Act when such construction is conducted upon, or adjacent to, navigable waters. This includes the construction of piers, bulkheads, breakwaters, and other structures over water. However, Jones Act remedies may be available for injuries sustained while working from a vessel, work platform, barge or dredge.
Jones Act
What is Jones Act coverage?
Federal coverage for seaman in the service of a vessel.
Who is eligible for Jones Act coverage?
Captain and crew of a owned vessel. Owner of the vessel is not a covered class.
What are the benefits?
Typically 3 times the benefits as under state workers compensation.
Can I cover my employees under my workers compensation policy for this exposure?
No as the workers compensation policy excludes coverage for this class of employee.
Where and how do I obtain Jones Act coverage?
It is typically written on the hull protection and indemnity policy.
How is rate determined?
Typically the premium is based on the number of crew.
Typical exposures?
Dredge operation employees in service to dredge, dock contractors employees on barge, Charter Boat captain and crew, party boat captain and crew and seaman on large or small vessels such as tugs and freighters.
Maritime Employers Liability Insurance (MEL)
What is MEL coverage?
MEL covers employees on someone else’s vessels. Small or large, oil rig, yacht, barge, or cruise ship, there is liability for employees when placed aboard other vessels even though the insured is not the owner or operator of that vessel. MEL also covers employees who are temporarily on board one of your client’s own vessels. For example, a marine construction company may have a full-time captain who is covered under its P&I policy, but also employs some land-based employees who work on board vessels part of the time. An example might be your shipyard has repaired a vessel and you had to temporally place an employee on board this vessel for sea trials.
Target Classes
Underwriting Considerations:
Contact us to learn more about the right Workers Compensation coverage for you Commercial Marine operations.
Where Does The USL&H Act Apply?
For a claim to be within the jurisdiction of the USL&H Act, the accident must have occurred on or adjacent to navigable waters of the United States. This is often referred to as meeting the “situs test.”
- “Navigable waters” are those which are (i) either subject to the ebb and flow of the tide, or (ii) currently used, previously used, or have the potential to be used, to transport interstate commerce or foreign commerce. Generally, these are oceans and bays, plus certain lakes and rivers.
- “Adjacent to the water” means on any pier, wharf, dry dock, terminal, building way, marine railway, or any adjoining other area customarily used in the loading, unloading, building, repairing, or dismantling of a vessel.
- No distinct boundary exists determining where state act coverage ends and longshore coverage begins. Rather, the employee’s job duties determine the appropriate jurisdiction.
Who is Subject to the USL&H Act?
Employers who have employees engaged in full or part-time maritime employment are subject to the USL&H Act. The term “employee” means any person engaged in maritime employment, including any longshoreman or other person engaged in long-shoring operations, and any harbor worker including a ship repairman, shipbuilder, and ship-breaker. Generally, the following types of employees are excluded if they are covered by a state workers’ compensation law:
- Individuals employed exclusively to perform office clerical, secretarial, security, or data processing work
- Individuals employed by a club, camp, recreational operation, restaurant, museum, or retail outlet
- Individuals employed by a marina and who are not engaged in construction, replacement, or expansion of such marina (except for routine maintenance)
- Individuals who (i) are employed by suppliers, transporters, or vendors, (ii) are temporarily doing business on the premises of a maritime employer, and (iii) are not engaged in work normally performed by employees of that employer under the Act
- Aquaculture workers
- Individuals employed to: i. build any recreational vessel under sixty- five feet in length; ii. repair any recreational vessel under sixty-five feet in length; or iii. dismantle any part of a recreational vessel under sixty-five feet in length in connection with the repair of such vessel
- A master or member of a crew of any vessel
- Any person engaged by a master to load or unload or repair any small vessel under eighteen tons net.
- Essentially all companies involved in waterfront activities involving interstate commerce facilitated along navigable waters. Typically marinas are exempt from this coverage. Companies which would have exposure, shipyards, boatyards repairing commercial vessels, dredge and dock contractors, electricians, plumbers repairing docks. Dry stack and marina contractors.
Possible USL&H Maritime Employments
The USL&H Act provides workers’ compensation coverage to land-based maritime employees, while the Jones Act provides tort remedies to sea-based maritime workers. There are many additional situations involving possible coverage under the USL&H Act. Some of the more frequent are:
Casual visitors on vessels: Casual business visitors are generally subject to state workers’ compensation laws. Other visitors, employed by a maritime employer, who make frequent trips to vessels or maritime sites to transact business may be covered by the USL&H Act. These include:
- Representatives of longshoremen’s union
- Employees of customhouse brokers
- Insurance adjusters
- Cargo handlers
- Steamship company employees
Dredging operations: Historically, injuries to persons employed in dredging operations have been compensable under the USL&H Act when such operations are carried out in navigable waters. However, under certain circumstances, injured workers may be able to pursue Jones Act remedies when dredging is conducted from a vessel in navigation.
Maritime construction: Injuries to persons employed in marine construction are generally compensable under the USL&H Act when such construction is conducted upon, or adjacent to, navigable waters. This includes the construction of piers, bulkheads, breakwaters, and other structures over water. However, Jones Act remedies may be available for injuries sustained while working from a vessel, work platform, barge or dredge.
Jones Act
What is Jones Act coverage?
Federal coverage for seaman in the service of a vessel.
Who is eligible for Jones Act coverage?
Captain and crew of a owned vessel. Owner of the vessel is not a covered class.
What are the benefits?
Typically 3 times the benefits as under state workers compensation.
Can I cover my employees under my workers compensation policy for this exposure?
No as the workers compensation policy excludes coverage for this class of employee.
Where and how do I obtain Jones Act coverage?
It is typically written on the hull protection and indemnity policy.
How is rate determined?
Typically the premium is based on the number of crew.
Typical exposures?
Dredge operation employees in service to dredge, dock contractors employees on barge, Charter Boat captain and crew, party boat captain and crew and seaman on large or small vessels such as tugs and freighters.
Maritime Employers Liability Insurance (MEL)
What is MEL coverage?
MEL covers employees on someone else’s vessels. Small or large, oil rig, yacht, barge, or cruise ship, there is liability for employees when placed aboard other vessels even though the insured is not the owner or operator of that vessel. MEL also covers employees who are temporarily on board one of your client’s own vessels. For example, a marine construction company may have a full-time captain who is covered under its P&I policy, but also employs some land-based employees who work on board vessels part of the time. An example might be your shipyard has repaired a vessel and you had to temporally place an employee on board this vessel for sea trials.
Target Classes
- Marine Construction
- Drilling Work
- Seismic Survey Work
- Scientific Research & Survey Work
- Artisan Contractors Working Onboard Vessels While Underway
Underwriting Considerations:
- Nature, location and duration of work being performed
- Receipts, payroll and payroll estimates for USL&H and Jones Act exposures
- Average and maximum number of employees exposed at any one time
- Claims history
Contact us to learn more about the right Workers Compensation coverage for you Commercial Marine operations.