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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AIA Praises Reintroduction of Longshore and Harbor Workers Act Changes
Recreational Vessel Regulations Published
Longshore Rule Changes Deadline

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

LHWCA Carriers' Right to Offset Despite Subrogation Waiver

The United States District Court for the Eastern District of Louisiana delivered an intriguing ruling in the matter of  Aries Marine Corp. The decision by Judge Lance Africk focused on the complex intersection of subrogation and offset rights within the framework of the Longshore and Harbor Workers' Compensation Act (LHWCA). 

The court's verdict stipulated that a waiver of subrogation by an LHWCA carrier does not negate the carrier's right to claim an offset against future LHWCA liability. This legal intricacy arose from an accident involving a lift boat off the coast of Louisiana in the Gulf of Mexico.

Workers injured when the lift boat capsized received compensation under the LHWCA, and the carriers then sought subrogation claims to recover the benefits paid from the defendants. However, the defendants and plaintiffs contested this by invoking the waiver of subrogation clause in their contract.

Judge Africk delved into the complex nuances of the contract, ultimately concluding that the waiver applied to the owner of the rig and its "invitees." Here, the court applied Louisiana law, defining invitees as individuals who enter premises with the express or implied invitation of the occupant, usually for mutual benefit.

The carriers subsequently filed motions for reconsideration, and the court recognized that a dismissal of their claim for an offset would be a "legal error." As a result, Judge Africk amended the summary judgment to acknowledge the carriers' right to claim an offset pursuant to Section 33(f). 

This ruling underscores the importance of understanding the nuanced aspects of legal provisions, even in cases where subrogation is waived, and reaffirms that carriers can still seek an offset against future LHWCA liability, ensuring a balance of rights in complex maritime compensation cases.

Ian Greenway

OWCP Proposes Changes to Longshore Act Civil Penalties Procedures

The U.S. Department of Labor has proposed changes to the regulatory framework governing penalties assessed against employers and insurance providers for non-compliance with reporting obligations under the Longshore & Harbor Workers’ Compensation Act.

Under the Longshore & Harbor Workers’ Compensation Act (LHWCA), compensation, medical care, and vocational rehabilitation services are provided to employees incapacitated by job-related injuries on U.S. navigable waters or adjacent areas typically used for ship-related activities. The LHWCA also stipulates survivor benefits for dependents in cases where a work-related injury leads to an employee's death.

The LHWCA allows the Office of Workers’ Compensation Programs (OWCP) to impose civil penalties against employers failing to report workplace injuries or deaths promptly and accurately.

In an effort to bring more transparency to the process, the proposed modifications unveiled by OWCP on September 11, 2023, would alter the practice of assessing and imposing civil penalties. 

By implementing a system of graduated penalties based on violation history, increasing measures for clarification throughout the assessment process, and expanding opportunities for employer appeals, the OWCP aims to promote accountability and ensure fairness in the process.  

OWCP is accepting written comments regarding the proposed rulemaking through November 13, 2023. You may submit written comments, identified by RIN number 1240–AA17, via the Federal eRulemaking Portal.

Ian Greenway