The Hidden News for Florida Longshore Employers

Florida Workers’ Compensation rates will rise by an average of 14.35% effective December 1^st and the industry has covered the impact of that on the “dry” businesses in Florida.  But the news for Employers with Longshore exposure is buried in the detail of the new filing.

STATE ACT CLASSES WITH LONGSHORE LOAD:

For risks that fall into the “non-traditional” Longshore world – e.g. a risk that does electrical work in a Longshore environment – there is some good news!  Even though the “DRY” or State Act rate may have gone up an average of 14.35%, the new Longshore load has been reduced from 1.20 to .92!  That means that instead of multiplying the state rate by 2.20 you now multiply it by 1.92.

The math on this is a little complex, but the bottom line is that the effective Longshore rate for those codes will DROP a hair… 0.2% -- not much, but DOWN not UP!

TRADITIONAL LONGSHORE CLASSES:

The average rate increase for the “traditional” Longshore classes is increasing 3% over the January 1, 2016 rates.   There is a long and even more complex explanation as to why these rates are increasing, but bottom line is the increase is a modest 3% rather than the 14.5% for their “dry” counterparts

Some of the more common classes and rate comparisons are:

CODE	2015 Rate	2016 Rate	% Difference
6006F – Marine Const.	$17.62	$18.08	+3%
6824F – Boat Building	$8.96	$9.19	+3%
6872F – Ship Repair	$12.22	$12.54	+3%
7317F – Stevedoring	$12.26	$12.58	+3%
8726F – Steamship Line	$2.70	$2.78	+3%

 These new rates will apply only on risks that are new or renewing after December 1, 2016. 

The bottom line is that whilst the “dry” business are going to be hit heavily with rate increases as the policies renew, the effect on Longshore business is going to be modest.

Keep Calm and Carry On; seems to be a good motto for this change in the marine world!

LIG MARINE MANAGERS REGISTERED AS LLOYD’S BROKERS

LIG Marine Managers is delighted to announce that we have been registered as Lloyd’s brokers. This expands further our role from being Lloyd’s coverholder and allows us to place business directly with Lloyd’s Underwriters.   Our Lloyd’s broker registration is LIG 1586.

Ian Greenway, President and CEO of LIG commented “This is a significant step in our relationship with Lloyd’s which started when we opened our doors and allows us direct access to the home of Marine Insurance”

Mark Greenway, London Market Director of LIG added “We have had our own London office since we were approved by the FCA (then FSA) in 2005 and that has only strengthened our relationships with our Lloyd’s underwriters. This registration will allow us to utilize the ability of Lloyd’s underwriters to make decisions and design custom solutions for our agents and clients”

About LIG Marine Managers
LIG Marine Managers is the leading provider of Commercial Marine and Longshore Insurance solutions to independent agencies throughout the USA and Caribbean since 1989. If you would like more information about this topic, please contact Ian Greenway or Mark Greenway at: Ian.Greenway@LIGMarine.com or Mark.Greenway@LIGMarine.co.uk  or call 727-578-2800

www.LIGMarine.com   www.LIGMarine.co.uk

Department of Labor Raises Penalty for late filing of the LS202 and other forms

As of August 1, 2016, new maximum civil penalties are in place according to the U.S. Department of Labor.   Announced June 30, 2016, the US Department of Labor unveiled an interim final rule showcasing an increase in civil penalties that can lead to additional penalties under the Longshore & Harbor workers Compensation Act (USL&H), and its extensions the Defense Base Act (DBA), the Outer Continental Shelf Lands Act (OCSLA), and non appropriated Fund Instrumentalities Act (NAFIA).

These penalties were exempt from the prior inflation adjustment act, so the agency’s penalties have not increased since 1990. By applying the 2015 Inflation Adjustment Act for the first time, Congress effectively directed DOL to account for more than 35 years of missed inflation adjustments in one step. Accordingly, adjusting for inflation now results in a substantial increase in one step!

There were even additional adjustments for USL&H penalties as they have not been keeping pace with inflation.  This means that the new civil penalty for “Failure to file first report of injury or filing a false statement or misrepresentation in first report”, the LS202, is now set at a maximum of $22,587!

Are You Hiring Your Next Big Claim?

Waterfront employers have a significant disadvantage when hiring.  Delivered by an obscure rule in the Longshore Act referred to as the “last responsible maritime employer”.

Dating back to 1955, the rule makes the last Maritime Employer who exposes and employee to a particular “injurious stimuli” responsible for all the employee’s injuries.  When stated simply, that does not sound too bad.  But, suppose you hire someone who has worked in a noisy environment for many years, and then works for you for a week.  Even if the environment is less noisy, his claim for hearing loss would be yours completely!  Add to that, even if the employee then goes to work on a land based job, the emphasis switches to the word “Maritime” and even then, the claim remains yours. 

Even scarier is the cumulative soft tissue injury!  Even if the job is more sedentary!

So how do you overcome this?  These few simple steps will help:

• Start with a Job Description – If you do not have time to write one from scratch, there are many good templates offered through the Trade Associations or online that you can easily customize.  The physical needs of that job must be included.  Things like:
• Must be able to lift 25lbs
• Job will require long periods of standing…(Be careful to follow ADA rules.  Use one of the online guides or an attorney)
• Make sure the applicant has had a chance to review the Job Description.  Then a great question is, “Is there anything that would stop you from performing the job described?” a simple yes or no question.
• A post offer, pre-start medical evaluation really helps.  The key here is to find a doctor who will test to the physical requirements of the position.  These simple steps are a minimal cost to help protect against a huge long term claim potential.

The more new hires, the more this problem multiplies. 

This advice is of course not legal advice.  You should always consult an experienced attorney who can review your particular circumstances and the Federal, State, and local laws applicable to your business, and provide you specific guidance before implementing any such programs.

You want qualified, experienced employees, they can be a tremendous asset to your business.  But, do not also let them be your next big claim, especially when it does not really even belong to you!

CMIP Invitation to Insuring Marine Employers

YOU Are Invited!

Hey All Insurance Professionals!

Just wanted to invite you to our upcoming education event, the CMIP Insuring Marine Employees Seminar!  The seminar will be held this March 14-15, 2016 at the Renaissance Tampa International Plaza Hotel in Tampa Florida.

The Insuring Marine Employees seminar delves deep into the exposures specific to Longshore and Workers Compensation, the regulations that define them, and where there are cross-overs that can cause unexpected exposures.  You will also receive practical “how to” guides on properly insuring them. 

Topics include an in-depth overview of Marine Employees Exposures with analysis of the State Act Workers Compensation, Longshore & Harbor Workers Compensation Act, Outer Continental Shelf Lands Act, and Admiralty Liabilities to Employees; Insurance Policies & Programs will focus on Workers Compensation, Longshore and OCSLA, Maritime Employers Liability, and Protection and Indemnity; and it concludes with the tricky issues of Payroll Allocation, Officer & Owner Exclusions, Modifiers, Auditing Techniques, and the Typical Structure Review.  Now that’s a lot of business knowledge packed into two days!

This dynamic seminar event is a great opportunity to broadening your expertise and network with others in your industry, as insurance professionals from all levels, Agents, Underwriters, Human Resources, Administrative, and Management will be in attendance!

Visit IIMIS.org to register; don’t delay as Group Rates fill fast and Early Bird Registration ends soon!  We look forward to welcoming you at this education event!  See you there!