Notable Longshoreman Insurance Providers
Several companies specialize in providing Longshore and Harbor Workers’ Compensation Act (LHWCA) insurance, commonly referred to as longshoreman insurance. These insurers offer tailored coverage for maritime employers, including shipbuilders, stevedores, marine contractors, and other waterfront operations.
1. Signal Mutual Indemnity Association (SMIA)
Signal Mutual is the largest provider of LHWCA coverage in the United States. Operating as a mutual association, it offers unlimited statutory coverage under the Longshore Act and its extensions, including the Defense Base Act (DBA), Outer Continental Shelf Lands Act (OCSLA), and Nonappropriated Fund Instrumentalities Act (NAFIA). Signal Mutual has a member retention rate of 98.2% and manages over 9,000 claims annually. Their programs include SafeShore for smaller waterfront employers and GovCon for government contractors working overseas.
2. The American Equity Underwriters, Inc. (AEU)
AEU is the program administrator for the American Longshore Mutual Association, Ltd. (ALMA), a group mutual company approved by the U.S. Department of Labor to provide coverage for USL&H exposures in all 50 states. AEU offers USL&H, State Act, and Maritime Employers’ Liability (MEL) coverage. They serve over 1,800 waterfront employers and have a member retention rate of 97.3%.
3. PMC Insurance Group / One80 Intermediaries
PMC Insurance Group, a subsidiary of One80 Intermediaries, offers a Longshore and Harbor Workers (USL&H) program underwritten through AmTrust Financial. This program provides coverage for businesses operating on or near navigable waters, including docks, piers, shipyards, and terminals. PMC helps independent insurance agents place workers’ compensation for businesses with maritime exposures.
4. Key Risk
Key Risk offers U.S. Longshore & Harbor (USL&H) workers’ compensation insurance solutions tailored to the needs of businesses performing work on and near navigable waters. Their program includes creative underwriting, incidental Maritime Employers’ Liability (MEL) coverage, and nationwide availability. Key Risk is rated A+ (Superior) by A.M. Best Company.
5. LIG Marine Managers
LIG Marine Managers specializes in marine insurance, offering coverage options such as Longshore coverage for injured workers, Maritime Employers’ Liability (MEL) for crew exposure, and Protection & Indemnity (P&I) for liability risks. They provide tailored insurance solutions to protect businesses from financial fallout when accidents occur in maritime operations.
6. Amwins
Amwins, through its partnership with The American Equity Underwriters, Inc., offers a USL&H insurance program approved by the U.S. Department of Labor. The program provides coverage for the United States Longshore & Harbor Workers’ Compensation Act, Outer Continental Shelf Lands Act, Defense Base Act, and a companion State Act program. Target classes include shipbuilders, ship repairers, stevedores, terminal operators, barge repair, marine construction, and more.
1. What is Longshoreman Insurance and who needs it?
Understanding the basics of longshoreman insurance is essential for any business operating in maritime environments. Longshoreman providers offer these specialized insurance plans to cover workers engaged in hazardous waterfront activities. This section explains who is required to carry such coverage and why.
Longshoreman insurance provides compensation and medical benefits to employees who work in maritime occupations on navigable waters of the U.S. or adjoining areas like piers, docks, and terminals. Employers who hire such workers are required by the Longshore and Harbor Workers’ Compensation Act (LHWCA) to carry this insurance. It is essential for businesses involved in shipping, marine construction, or waterfront operations.
2. How is longshoreman insurance different from state workers’ compensation insurance?
It’s important to understand how longshoreman insurance differs from state-mandated workers’ compensation. Longshoreman providers structure their policies to address the unique risks and legal frameworks of maritime employment. This section highlights those key distinctions.
While state workers’ comp applies broadly to most industries, LHWCA provides coverage specifically for maritime workers who are not seamen. Longshoreman insurance typically offers higher benefit limits and covers injuries that state programs might exclude if they occur over or near navigable waters. It’s federally administered, so it follows federal guidelines rather than state law.
3. What types of workers are covered under the LHWCA?
Not all maritime workers fall under the protection of longshoreman insurance, and coverage depends on job duties and location. Longshoreman providers must assess eligibility carefully to ensure the right individuals are insured. This section outlines which roles are covered.
The LHWCA applies to workers like:
- Longshoremen and harbor workers
- Shipbuilders and ship repairers
- Stevedores
- Marine construction workers (on piers, docks, terminals)
It does not cover:
- Crew members of vessels (who are covered by the Jones Act)
- Office or clerical workers
- Marina employees not involved in construction or shipbuilding
4. What benefits does longshoreman insurance provide?
Longshoreman insurance is more than just a legal requirement; it provides critical support to injured maritime employees. Longshoreman providers offer benefits such as medical care and disability compensation to assist workers in their recovery and return to work.
Key benefits include:
- Medical care related to the injury
- Temporary total disability (TTD) and permanent partial/total disability (PPD/PTD) compensation
- Vocational rehabilitation for returning to work
- Death benefits for surviving dependents of a deceased worker
The compensation amount is often two-thirds of the worker’s average weekly wage, subject to a cap.
5. Is longshoreman insurance required by law?
Compliance with federal law is non-negotiable when it comes to longshoreman insurance. Longshoreman providers ensure that maritime employers meet these obligations and avoid the severe penalties of non-compliance. This section outlines the legal requirements.
Yes. Under the LHWCA, most maritime employers must carry approved insurance or be authorized self-insurers. Failure to comply can result in civil penalties, lawsuits by injured employees, and even criminal prosecution.
6. How do employers obtain longshoreman insurance?
Securing longshoreman insurance is a crucial step for maritime businesses. Longshoreman providers guide employers through the process of acquiring a compliant and comprehensive policy. Here’s how employers can obtain coverage.
Employers can:
- Purchase a policy from an authorized insurance carrier approved by the U.S. Department of Labor
- Apply to become a self-insured employer (a more rigorous process that requires financial proof)
7. What is the difference between LHWCA and the Defense Base Act (DBA)?
While both offer protection for workers, the LHWCA and DBA serve different employment contexts. Longshoreman insurance, offered by specialized longshoreman providers, applies domestically, while the DBA extends coverage internationally. This section explains the differences.
The DBA is an extension of the LHWCA and provides similar coverage to:
- Civilian employees working overseas under U.S. government contracts
- Workers on military bases or public works outside the U.S.
While the LHWCA applies domestically, the DBA applies internationally under government contract conditions.
8. Can a worker receive both LHWCA and Jones Act benefits?
It’s common for workers to wonder whether they can receive benefits under both federal acts. Longshoreman providers help clarify this boundary, as eligibility for longshoreman insurance versus the Jones Act depends on specific job functions.
No. A worker is either covered under the LHWCA or the Jones Act, but not both. The LHWCA covers land-based maritime workers, while the Jones Act covers seamen—those who work on vessels in navigation and contribute to its mission.
9. What is situs and status under the LHWCA?
The concepts of “situs” and “status” are fundamental in determining who qualifies for longshoreman insurance. Longshoreman providers use these legal tests to evaluate the eligibility of injured workers. This section defines both terms.
These two legal tests determine eligibility:
- Situs test: Injury must occur on, over, or adjacent to navigable waters, like on a dock, pier, or terminal.
- Status test: The injured employee must be engaged in maritime employment like loading/unloading vessels, shipbuilding, or ship repair.
Both tests must generally be satisfied for LHWCA coverage.
10. What happens if an employer doesn’t carry longshoreman insurance?
Neglecting to carry longshoreman insurance can have serious legal and financial consequences. Longshoreman providers stress the importance of compliance to avoid lawsuits, penalties, and personal liability. Here’s what happens when coverage is absent.
Consequences include:
- Injured employees can sue the employer in federal court for damages
- Employer loses common law defenses (e.g., contributory negligence)
- The Department of Labor can impose civil penalties up to $10,000 and criminal charges
- Responsible officers may be held personally liable for compensation owed
