Tuesday, May 28, 2024

Why is Longshore Coverage Important for Marinas?

Section 902(3)(C) of the LHWCA states that “individuals employed by a marina and who are not engaged in construction, replacement, or expansion of such marina” are excluded from coverage.

This exclusion may lead agents and marina operators to believe that Longshore coverage isn't beneficial for their marina operations, but that's not necessarily true. 

At the very minimum, marinas need Longshore coverage on an “IF ANY” basis so they're covered in the following situations:

 If marina employees ever do construction, replacement, or expansion work, they fall into an exception to the “marina” exclusion and, as such, would become Longshore.

When contractors come to the marina to work on the docks, jetties, storage buildings, racks, etc., they are Longshore. If their employer does not have Longshore coverage in force, that can pass directly back to the marina.

➡ In situations with vessel service/repair work, the marina exclusion only applies to employees directly employed by the marina. If a contractor/subcontractor comes into the marina and works on a commercial vessel (sea tow, city/state vessel, most charter boats, etc.), they can claim Longshore even though direct employees doing the same work cannot.
Learn more about it in the What is a Recreational Vessel? webinar.

➡ Any marina employee can bring a Longshore claim, and even if they are unsuccessful in getting those benefits, marina operators could incur a significant defense cost bill. No Longshore coverage = No defense costs.

Fortunately for most marinas, the additional premium cost to add “IF ANY” Longshore coverage is a few hundred dollars — a small price to pay for peace of mind and protection in these situations. 

If you have questions about your marina client’s coverage needs, contact our expert Longshore team at Ask@LIGMarine.com

Ian Greenway