Longshore Rule Changes Deadline

The Department of Labor proposed rule changes to the Longshore act in response to the removal of the 65ft limitation for recreational marine repair/service business February 2009.

Full details of the proposed rule change can be found at
http://www.cftc.gov/ucm/groups/public/@lrfederalregister/documents/file/2010-20311a.pdf

We have analyzed these changes and have posted our position with the DOL as a formal comment. You can find a copy of our position paper and our proposal for a better rule at

http://resource.ligmarine.com/Proposed Longshore Rules 701.pdf

If you have comments for the DOL on these proposals, you need to submit them before the close of tomorrow, Thursday November 18^th - the easiest way is through the website http://www.regulations.gov/search/Regs/home.html#home enter 1240-AA02 in the search box and “PROPOSED RULES” in the document type to locate the rule and submit your comments .

If you want to read comments that have been posted by others, change the document type to public submissions.

ACT NOW!

FLORIDA LONGSHORE RATES (again)

OK, change time again, effective January 1st 2011, the FLORIDA rate are changing yet again...

The Longshore load increased slightly from 1.19 to 1.23 for the "surcharged" rate group (surcharged classes are the typically DRY rate groups that have no specific Longshore code . . . carpenters, electricians etc. are classic examples). However, State rates on average went up 7.8%. Through some complex math that means the average Longshore rate for these "surcharged" classes will go up 7.94%. This will vary by class code.

The Natural Longshore codes (those that have a specific F code applicable) have also changed - here are some examples

	July 2010	Jan 2011	Change
6824F Boat Building	11.73	10.44	-11.06
6872F Ship Repair	22.19	20.70	-6.7%
6006F Marine Contractors	12.06	13.35	+10.7%
7327F Stevedoring Containerized	19.34	23.01	+19.0%

These new rates apply only for risks that are new or renewing after January 1st 2010.

Clearly quite a mixed bag of rates… a 30% swing from the highest increase to the lowest reduction.

Longshore & 3c

The out of state problem for Longshore has long been around but has recently been brought to the surface by new claims being denied.   Here's the situation in a nutshell.

• Client is based in one state and that state is listed in 3A of the WC policy.
• Client has all other states (except monopolistic) in 3c
• Client has a Longshore endorsement with the 3A state listed
• One of client’s employees goes to neighboring state for ONE DAY to do a Longshore job.
• Claim is denied in that state:

WHY?  simple, but illogical.

The LONGSHORE endorsement only covers accidents in a state listed in the Longshore endorsement's schedule!    As the 3A state was not the location of the injury - no coverage.

This makes no sense - Longshore is federal coverage so why restrict it to a listed state...    but if you read the endorsement that is what it says and that is how it is being used today by certain carriers to deny claims.

The problem is increased when the carrier is a state fund, assigned risk, JUA or pseudo state fund as many of those are not ABLE to provide out of state coverages.

HOW TO SOLVE

1. Add EVERY state the client could work in to the Longshore endorsement.   Usually free or low cost if added on an if any basis...   Problem:  many carriers cannot or will not do this.
2. Add an other states LONGSHORE endorsement to the policy (only one or two carriers will do this) Problem: follows 3C so no coverage in monopolistic states.
3. Add “ALL STATES" Longshore coverage - only one carrier will do, but great solution.
4. Put your E&O carrier on speed dial...   if you don't take care of this by 1, 2 or 3 you WILL have the uncovered claim... the only questions is when.