Quick answer
USL&H insurance covers your liability under the federal Longshore and Harbor Workers' Compensation Act. It applies to employees in maritime employment (longshore workers, harbor workers, ship repairers, shipbuilders and the crews who build docks, piers and marinas) injured on navigable waters or an adjoining pier, wharf, dry dock, terminal or similar area. In New York it is usually added to your state workers' comp policy by a USL&H endorsement. Failing to secure it is a federal misdemeanor, with fines up to $10,000 and personal liability for corporate officers. It costs more than state comp, and many insurers will not write it, so the way you report payroll matters. We place USL&H for New York contractors and marine businesses.
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Fastest way to a quote: email your current policies (workers' comp with any USL&H endorsement, GL, hull and P&I), five years of loss runs, payroll split between land-side work and work on or over the water, your vessel and equipment schedules, a project list and the insurance section of a typical contract to adolfo@nextguardinsurance.com. Marine underwriters need the full picture, and one complete submission moves faster than ten phone calls.
Please send your account to one broker. The marine market is small; when several brokers submit the same account to the same underwriters, the account gets blocked and quotes slow down.
The Longshore Act applies when an injured employee meets two tests:
| Test | What it asks | Examples |
|---|---|---|
| Status (33 U.S.C. 902(3)) | Is the person engaged in maritime employment? | Longshore workers, harbor workers, ship repairers, shipbuilders, ship-breakers, and workers building or repairing docks, piers and marinas |
| Situs (33 U.S.C. 903(a)) | Did the injury happen on navigable waters or an adjoining area? | On the water, or on an adjoining pier, wharf, dry dock, terminal, building way, marine railway or other area used to load, unload, repair, dismantle or build a vessel |
In New York that typically means:
The Act lists exclusions, and most of them only apply if the worker is covered by a state comp law:
| NY Workers' Comp (state act) | USL&H (federal) | |
|---|---|---|
| Who runs it | NY Workers' Compensation Board | U.S. Department of Labor, OWCP |
| Who it covers | Most employees working in New York | Maritime employees injured on a covered situs |
| Weekly benefit | Two-thirds of average weekly wage, up to the NY state maximum | Two-thirds of average weekly wage, up to 200% of the national average weekly wage |
| How you buy it | A standard NY workers' comp policy | A USL&H endorsement on the comp policy, or a stand-alone federal policy |
| Failure to cover | State penalties and stop-work orders | Federal misdemeanor: fine up to $10,000, up to 1 year in prison, officer liability |
An injured worker who meets both tests can often pursue both state and federal benefits, with credit for what was already paid. That is why insurers treat USL&H as a separate exposure even when your state comp is in place. The state side is covered on our New York workers' compensation insurance page.
Under 33 U.S.C. 904(a), if a subcontractor fails to secure Longshore coverage, the contractor above it becomes liable for that sub's employees. Before any sub sets foot on a pier or barge, get a certificate that shows the USL&H endorsement, not just a state comp policy.
USL&H is priced on your payroll for the work exposed to the federal act. In New York, NYCIRB applies a federal coverage factor to state-act loss costs for that exposure, and some maritime classes are rated directly under the U.S. Act. Three things shape the real number:
For base loss costs by trade, see NY workers' comp cost by class code.
"If any" endorsements are not a plan. Some policies include USL&H on an "if any" basis for incidental exposure. If you regularly work on piers, bulkheads or barges, tell your insurer and report the payroll. An undisclosed exposure found at audit, or at a claim, is the worst way to learn your coverage is thin.
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USL&H insurance covers an employer's obligations under the federal Longshore and Harbor Workers' Compensation Act, which pays medical care and wage benefits to maritime employees injured on navigable waters or an adjoining pier, wharf, dry dock, terminal or similar area. It is usually added to a state workers' comp policy by endorsement.
Employers whose workers are in maritime employment and work on navigable waters or adjoining areas, such as dock and pier builders, bulkhead and seawall contractors, marina construction crews, ship and boat repairers, terminal operators and stevedores.
Status asks whether the employee is engaged in maritime employment, such as longshore, harbor, ship repair or shipbuilding work. Situs asks whether the injury happened on navigable waters or an adjoining area used to load, unload, repair, dismantle or build a vessel. Both are usually needed for Longshore coverage.
Not always. A standard New York policy covers state-act benefits. If your employee meets the Longshore Act's status and situs tests, you also need USL&H coverage, usually through an endorsement on the policy. An injured worker can often claim under both.
Marina employees are generally excluded if they are covered by state workers' comp, but the exclusion does not apply to employees engaged in construction, replacement or expansion of the marina. Marina construction contractors usually need USL&H.
Failing to secure Longshore compensation is a federal misdemeanor under 33 U.S.C. 938, with a fine of up to $10,000, up to one year in prison, or both. Corporate officers can be held personally liable, and you remain responsible for the injured worker's benefits.
Yes, if the subcontractor fails to secure coverage. Under 33 U.S.C. 904(a), the contractor becomes liable for compensation to the sub's employees. Ask every sub for a certificate showing the USL&H endorsement.
No. A master or member of the crew of a vessel is excluded from the Longshore Act. Seamen claims fall under the Jones Act and general maritime law and are covered by Maritime Employers Liability.
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