When you have a business in the marine industry, there are a lot of different risks. In the U.S., you may be required to have United States Longshore & Harbor coverage in addition to your workers’ compensation policy. Here is what you need to know about USL&H coverage and whether your company should obtain it.
What Is United States Longshore & Harbor Coverage?
USL&H coverage is a form of workers’ compensation coverage. Workers’ compensation coverage does not always cover injuries that occur near navigable waters. It is a federal requirement for many companies who work in the marine industry to carry USL&H coverage.
Does Your Business Require USL&H Coverage?
The federal government requires the following businesses to carry USL&H insurance:
- Ship repairers
- Dock builders
- Marine contractors
Any company that works within two feet of navigable water generally requires this coverage. If your company does not carry USL&H despite requirements, you could face up to $10,000 in fines or a year in prison. Failure to carry coverage when necessary results in a misdemeanor charge.
When it comes to workers’ compensation coverage, not all policies are created equal. They do not always cover all of the same risks. If your business operates on an adjoining pier, terminal, dry dock or marine railway, you probably need USL&H insurance.