What You Need to Know About USLH Insurance

If you work in the maritime industry, standard state workers’ compensation coverage may not be enough for your business. Under the Longshore and Harbor Workers Compensation Act, your business may be required to carry United States Longshore and Harbor coverage.

Facts About the LHWCA

The LHWCA is a federal workers’ compensation act. It covers harbor workers, longshoremen, terminal workers, shipyard workers and more. The federal government requires that all businesses that work near navigable waters carry this form of insurance. If you do not carry it, you could be subject to fines up to $10,000 or up to one year in prison.

Benefits of USL&H

USL&H coverage tends to be more advantageous to employees and maritime workers than state workers’ compensation benefits. Workers’ compensation coverage, for example, may pay about 60% of an employee’s weekly wage. However, when you have USL&H coverage, your employees are more likely to receive about 2/3 of their weekly wage.

In some states, workers’ compensation does not provide permanent partial disability coverage. However, under the Longshore and Harbor Workers’ Compensation Act, the employees are guaranteed that coverage.

If you have a maritime business that works within two feet of navigable waters, then you are obligated to have USL&H coverage. While this might seem like excessive coverage, it provides more protections to workers than workers’ compensation.