Why the Longshore Act Still Matters: A Century of Protection for Maritime Workers

For insurance agents working with marine businesses, understanding the Longshore and Harbor Workers’ Compensation Act (LHWCA) is essential. This federal law has shaped the protection of thousands of waterfront workers for more than 100 years, and it continues to evolve today. But how did we get here?

From Legal Gap to Lifesaver: The Birth of the Longshore Act

In 1917, a Supreme Court decision (Southern Pacific Co. v. Jensen) ruled that states couldn’t provide workers’ compensation for injuries that occurred on navigable waters. That left a dangerous gap in coverage—until the Longshore Act was passed in 1927. The Act created a federal system to protect shipbuilders, harbor workers, and longshoremen.

Key Amendments That Changed the Game

Major updates in 1972 expanded coverage beyond vessels and docks to include adjacent areas, such as piers and marine terminals. Survivor benefits and maximum compensation rates were also improved.

In 1984, additional changes clarified who was (and wasn’t) covered. Recreational vessel workers under 65 feet, certain office personnel, and aquaculture workers were excluded if state comp laws protected them.

Adapting to a Changing Industry

In the 2000s, the Act was updated again to reflect shifts in maritime work. The 2009 American Recovery and Reinvestment Act expanded exclusions for recreational vessel repairers, after 10 years of lobbying led by the Marine Industries of South Florida. The 2009 expansion was then amended by rules published by the Office of Workers' Compensation Programs, released late in 2011. Then, in 2023, proposed regulations targeted employer penalties for failing to accurately report injuries—showing how the law continues to evolve in response to workplace realities.

Key Extensions of the Act

The reach of the LHWCA goes far beyond traditional longshore and harbor workers. Congress has extended its provisions to several other groups, adding layers of complexity to who’s actually covered:

• Defense Base Act (DBA): Covers civilian employees of U.S. government contractors working overseas.
• Outer Continental Shelf Lands Act (OCSLA): Covers workers involved in offshore exploration and development of natural resources—like oil rig crews.
• Nonappropriated Fund Instrumentalities Act (NAFIA): Applies to civilian employees of military-run services, such as base exchanges and recreational facilities.

Understanding who is covered is just as important as what is covered. Between special extensions, evolving definitions, and overlapping jurisdictions, navigating Longshore coverage isn’t always straightforward—especially for agents trying to do it alone.

For agents, the Longshore Act’s ongoing evolution means one thing ... 

Risks change, and so should coverage strategies. Whether your client is a marine contractor, terminal operator, or recreational vessel builder, the rules surrounding Longshore coverage can affect their exposure—and your liability.

Need help navigating it all? 

LIG Marine Managers has been specializing in Longshore for over 30 years. We’ll help you identify potential coverage gaps and find the best solution for your client’s needs.

Have a Longshore risk to review?

Send submissions to Submit@LIGMarine.com or visit LIGMarine.com to connect with one of our Longshore experts.

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