Other FAQ questions:
1. What are the penalties for not having USL&H or Longshoreman Insurance when I should have it? See this link below from the US Dept. of Labor:
http://www.dol.gov/owcp/dlhwc/lhwca.htm#938
I will copy and paste it below.
§ 938. Penalty for failure to secure payment of compensation
(a) Failure to secure payment of compensation. Any employer required to secure the payment of compensation under this Act who fails to secure such compensation shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than $10,000, or by imprisonment for not more than one year, or by both such fine and imprisonment; and in any case where such employer is a corporation, the president, secretary, and treasurer thereof shall be also severally liable to such fine or imprisonment as herein provided for the failure of such corporation to secure the payment of compensation; and such president, secretary, and treasurer shall be severally personally liable, jointly with such corporation, for any compensation or other benefit which may accrue under the said Act in respect to any injury which may occur to any employee of such corporation while it shall so fail to secure the payment of compensation as required by section 32 of this Act [33 USC § 932].
(b) Avoiding payment of compensation. Any employer who knowingly transfers, sells, encumbers, assigns, or in any manner disposes of, conceals, secretes, or destroys any property belonging to such employer, after one of his employees has been injured within the purview of this Act, and with intent to avoid the payment of compensation under this Act to such employee or his dependents, shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than $10,000, or by imprisonment for not more than one year, or by both such fine and imprisonment; and in any case where such employer is a corporation, the president, secretary, and treasurer thereof shall be also severally liable to such penalty of imprisonment as well as jointly liable with such corporation for such fine.
(c) Effect on other liability of employer. This section shall not affect any other liability of the employer under this Act.
See the entire Department of Labor page link here:
http://www.dol.gov/owcp/dlhwc/lhwca.htm#938
- Is there a longshoreman insurance for a short job somewhere ? Not to my knowledge. All policies are issued on an annualized basis and you are looking at a minimum premium of around $15,000 to $20,000 USD per year.
We sometime suggest that the 1-2 man operation look around for a "big brother" type relationship with a larger contractor in order to come under the large contractor's USLH or Longshoreman Insurance and split the job with that company. We realize that this may be hard or even impossible. However, make sure that there is enough profit and business there for you to pay $20,000 in insurance costs for your work!
3. Does the longshoreman requirements apply for foreign Country workers too which are coming over to do a warranty repair on a boat? Yes, if the foreign workers are working in or around US waters. Also, a US Company working in other countries may fall under the USLH law even though the company is working abroad.
The outlook for 2015 appears to be very positive as it appears that more work is becoming available. With the deal reached with the San Francisco Dock Workers, everyone on the West Coast of the US should see more demand for work and more demand for USLH insurance.
General questions for 2014:
Most all of our questions come from the smaller operators who "stumble" into the USHL work and want to know if they need insurance or what the minimum premiums are.
Question for December 2013:
One potential client called in because he is building a recreational boat 85 feet long. He wanted to know if he needed to purchase USL&H. He thought that USL&H was a requirement of a particular State and not a federal law. The answer was "Yes, you need to purchase USL&H insurance if the recreational boat you are buying is over 65 feet in length."
Questions for July 8, 2011
This week we received a couple of questions concerning USL&H (USLH) and Jones Act coverage in international waters.
The first one asked the following question:
"I am going to Brazil to operate a dredge in Brazil. Do I need Longshoreman Insurance?" I answered that most likely you do not need USL&H or Longshoreman Insurance because you will be operating outside the waters of the United States of America and the first two letters of USLH is "US," meaning United States and not Brazil. However, there could conceivably be a need for USL&H in this case under certain very strict conditions.
The second question is more complicated. In this case, we have an Asian company that is recruiting non-US citizens to work on an oil platform off the Coast of Africa. The contracting company is a US Company and the company is requiring the contractor to purchase USL&H and Jones Act Coverage. However, there will be no coverage under each policy unless it somehow involved a worker doing work in US waters. BUT the company IS REQUIRED to purchase the coverage in order to bid the job....a "Catch-22" situation if I have ever seen one!
We are still working on this one....
Questions for March 24, 2011
The following questions were asked this week about Longshoreman Insurance. These questions come from a California contractor who was unable to get any information from his broker because the broker was not very experienced in matters of Ocean Marine Insurance or Longshoreman Insurance.
"Our services include the sampling and measurement of liquid petroleum products in tanks, ships and barges. Normally the ships and barges are docked or in a harbor where we can take a tug out to.
My understanding is that USL&H covers employees working along the shoreline and in around the harbors. We may have a job that is coming up that will be in domestic waters (14 nautical miles) but not along the shoreline.
1. Will USL&H cover my employee who has taken a third party tug out to a clients ship to sample and measure that is say 5-10 nautical miles out?
2. If not, what is the USL&H defined shoreline?
3. And lastly, what if the ship is out in international waters? (15-20 nautical miles)"And here are the answers provided:
USL&H will cover the employees working along the shoreline, as long as a vessel is docked/moored. USL&H will not cover a Master or Member of a crew, but the distinction can be tough to distinguish.
If it is moving, it should be covered by USL&H, however, since you cannot dictate where a claim is file, it needs to carry MEL, at least for defense purposes (to move the claim back to the proper jurisdiction (court). When they go out 5-10 miles, I still believe in the end they would be covered by USL&H. Typically, a person needs to spend 20-30% of their time in service to a vessel to be qualified as a Jones Act seaman. It doesn’t sound like that is the case in your situation. However, if a claim is filed for jones act benefits, it will take $20,000-$30,000 in legal fees to get it to the correct jurisdiction.
Regarding work out of US waters, 15-20 miles out, I still think this is going to be covered by USL&H. Court cases have held the insured cannot sail in and out of coverage by crossing into and out of international waters to avoid longshore coverage. Courts have stretched longshore coverage to reach the high seas when sailing directly between two ports. However, my domestic wc carriers can only offer domestic MEL. It does not extend into international waters. An international MEL policy would be needed for any coverage outside territorial waters.
Sometimes there are no clear cut answers. It pays to ask these type questions of your insurance broker. Get it in writing from your broker.
Here is another question:
Does it matter how deep the water is? Answer: it only matters if the water is not landlocked and it can get you to the ocean or is navigable waters. There are other requirements whereby one would need USL&H or Longshoreman Insurance and be miles from the water!
What is the difference between MEL Insurance and Jones Act Coverage? What is the difference between MEL Insurance and Jones Act Coverage?
MEL Insurance Coverage
If your employees find themselves on a vessel operated by another company, Maritime Employers Liability Insurance should be a consideration.
Once a vessel has left the dock and is under its own power, state Workers' Compensation does not cover you and USL&H coverage will not be enough to cover your employees.
Employers that should consider Maritime Employers Liability Insurance if your company is involved with supplying equipment or making repairs to other companies' vessels.
If you are leasing the vessel, then you will need MEL coverage and not Jones Act.
What is the difference between MEL Coverage and Jones Act Coverage?
The Jones Act covers employees onboard vessels owned, leased or operated by your company, while MEL covers incidents that may occur while an employee is working on a vessel owned and operated by another party.
So one can see that it boils down to this, if you own the vessels, then Jones Act Coverage is needed and if you do not then MEL Insurance is needed.
IS MY COMPANY NOT REQUIRED OR EXEMPT FROM HAVING LONGSHOREMAN / USL&H INSURANCE COVERAGE?
August 1,2024
Certain types of employers may be exempt from carrying USL&H / Longshoreman insurance coverage. Some of these exemptions can include:
Small Vessel Exclusion:
Employers whose workers are exclusively engaged in building, repairing, or dismantling small vessels under 65 feet in length.
Office Workers:
Employees who are strictly office-based and do not perform any maritime-related activities.
Foreign Operations:
Employers whose operations and employees are entirely based outside of the United States. However, operations / employees at a military base of the USA will require a special type of this insurance coverage called Defense Base Act or DBA.
Government Employees:
Federal or state government employees, as they are covered under different compensation programs.
Aquaculture Workers:
Those engaged in aquaculture (farming of aquatic crops/organisms), unless the work is directly related to vessel construction, repair, or loading and unloading operations.
These are some only some general, basic exclusions. Always consult with a professional like us at Lonsgohremaninsureance.com to understand specific requirements and whether your company falls under any exemptions. It's crucial to ensure compliance with the Department of Labor's regulations to avoid penalties and ensure adequate protection for your employees. Keep in mind, if you are exempt from having this particular type of insurance coverage, that doesn't mean you are exempt from needing insurance coverage. Sometimes,
even though you may be technically exempt, you are still required to carry LONGSHOREMAN / USL&H INSURANCE.
Give us a call, we can help. (844) 667-660 or 205-275-5005 for after hours.
For more in-depth research, check out the USA DOL at: https://www.dol.gov/agencies/owcp/dlhwc/regs/compliance/ca_lhwca
HOW MUCH DOES LONGSHOREMAN INSURANCE COST AND HOW DOES THE PROCESS WORK?
June 30,2022
For a one to two person marine operation doing vessel work or in need of a USLH or longshoreman insurance policy, how much is the cost?
Typically the annual premium is around $9,500 to $10,500 with a payment plan of 25% down, so say $2,500 down.
LongshoremanInsurance.com offers you the ability to pay your premiums monthly with no big down payment.
Details can be found by emailing, texting or calling our offices.
WHAT IS THE PROCESS TO GET USLH INSURANCE?
Here is how it works. A contractor or entity in need of a USLH policy will call (844) 667-660 OR 205-275-5005. Or if one prefers email, then
one may email [email protected] or [email protected] with an inquiry.
We will email back to you a one page USLH Application form that one completes and emails back to us.
We will need to know your company name, address, FEIN or Federal Employee ID number, a description of past and present work, estimated
annual sales and payroll, how many workers or employees, if any, other than the owner. We will also need a quick one or two page work
resume that tells us what your past experience and technical education may be. We will need to know if you have a current workers
compensation policy and if you have current general liability insurance. If not, then these are NOT disqualifiers. If you have current State
Workers Compensation Insurance, we will need a copy of the policy declarations pages, not an Acord certificate of insurance from your
current agent/broker/agency. What is a declaration page? It is the page that has your company name, address, coverage amounts and that sort
of information.
We will gather all the required information from you and submit to our insurance companies and get you a quote. This will take anywhere from
1-3 days dependi ng on how busy the insurance company underwriters are at the time. Once we have the quote, we will email over to you the
quote for USLH and State Act Workers Compensation Insurance. Usually the cost of State Act Workers Compensation is under $500 per year.
The largest cost is the USLH policy. You will sign the documents and email those executed documents back to our firm, Old National Insurance, Inc. dba LongshoremanInsurance.com and we will invoice you for the premium amounts. Once we have the premium monies collected, we can then issue the all-important Certificate of Insurance (COI) that is required by your shipyard, marina, contractor, government entity or other third party. The total process will usually take anywhere from 3-5 days depending on how quickly everyone in the chain of distribution works and gets the information back to us and then we get back from the insurance companies. Our firm insures small firms and we have larger firms with 300 employees or more insured. There is no size limit.
July 5, 2022
Answer:
Yes, we can insure staffing agencies that are in need of Longshoreman Insurance. We currently write several staffing companies that have USL&L or Longshoremaninsurance exposure.
We also can write your Marine General Liability. We can offer monthly payments based on your company making monthly payroll reports to us. We can start you out with 25 % down.
Answer: NO, absolutely NOT!
Why? Take a look at the Longshore Act and its amendments of 1984, Sections 902 (3)(a) through 902(3)(h). Several exclusions are listed there but NOT ONE of them mentions an exclusion for Corporate Officers, Sole Proprietors or Partners. see this cite directly from the US Department of Labor Website: www.dol.gov
- 902. Definitions
(1) The term "person" means individual, partnership, corporation, or association.
(2) The term "injury" means accidental injury or death arising out of and in the course of employment, and such occupational disease or infection as arises naturally out of such employment or as naturally or unavoidably results from such accidental injury, and includes an injury caused by the willful act of a third person directed against an employee because of his employment.
(3) The term "employee" means any person engaged in maritime employment, including any longshoreman or other person engaged in longshoring operations, and any harbor-worker including a ship repairman, shipbuilder, and ship-breaker, but such term does not include —
(A) individuals employed exclusively to perform office clerical, secretarial, security, or data processing work;
(B) individuals employed by a club, camp, recreational operation, restaurant, museum, or retail outlet;
(C) individuals employed by a marina and who are not engaged in construction, replacement, or expansion of such marina (except for routine maintenance);
(D) individuals who (i) are employed by suppliers, transporters, or vendors, (ii) are temporarily doing business on the premises of an employer described in paragraph (4), and (iii) are not engaged in work normally performed by employees of that employer under this Act;
(E) aquaculture workers;
(F) individuals employed to build any recreational vessel under sixty-five feet in length, or individuals employed to repair any recreational vessel, or to dismantle any part of a recreational vessel in connection with the repair of such vessel;
(G) a master or member of a crew of any vessel; or
(H) any person engaged by a master to load or unload or repair any small vessel under eighteen tons net.
There is no mention of Exclusions for Corporate Officers and the like, not one!
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