If you are a maritime employer, knowing when an injury qualifies for compensation under the Longshore and Harbor Workers’ Compensation Act is critical. This federal law governs workers’ compensation benefits for employees working on or near navigable waters. In this guide, we explain how USL&H insurance applies, what it covers, and who is required to carry it.
What USL&H Insurance Covers
USL&H insurance provides essential workers’ compensation coverage for employees involved in maritime operations. It is required for many waterfront employers and protects against liability while ensuring injured workers receive the benefits they are entitled to under the Longshore Act.
The coverage applies to employees in roles such as:
- Longshore workers
- Shipbuilders and ship repairers
- Stevedores
- Marine terminal operators
- Shipbreaking and harbor construction personnel
- Shipyard workers performing vessel maintenance and repair
In addition, contractors or subcontractors performing temporary maritime-related work, such as cargo handling, maintenance, or vessel repair, may also require coverage. This is true even if the work is short-term or project-based, provided the job duties meet the requirements of the Longshore Act.
Two key tests help determine coverage eligibility:
Status: The nature of the work must involve maritime activity, such as loading or unloading vessels, ship repair, or vessel maintenance. Any other maritime-related work, depending on the nature of the job, could also satisfy the “status” mandate.
Situs: The work must occur on, over, or near navigable waters. This includes docks, piers, shipyards, wharves, terminals, and any adjoining areas where maritime operations are performed.
If your business operates in these areas, USL&H insurance is not optional, it is a legal requirement. Failing to carry the correct harbor workers’ compensation insurance can expose employers to serious legal and financial risks.
What Counts as a Compensable Maritime Injury?
To qualify for USL&H insurance benefits, an injury must meet two legal standards under the Longshore Act:
Arising out of employment: There must be a clear link between the injury and the job duties or work conditions.
In the course of employment: The injury must happen during working hours, while on the jobsite, or while performing job-related tasks.
Both criteria must be satisfied for a claim to be compensable under longshore workers’ compensation coverage.
How Claims Begin: The Prima Facie Case
An injured maritime worker begins a Longshore Act claim by establishing a prima facie case, which includes two elements:
- Evidence of harm (such as an injury or illness), and
- Working conditions that could have caused the harm
At this stage, the worker does not need to prove the injury was caused by work. They must only show that a plausible connection exists between their condition and the job. Once this is shown, a legal presumption arises under Section 920(a) that the injury is work-related.
For example, if a worker experiences back pain after offloading cargo, that testimony alone could establish a valid claim under the Longshore Act.
The Employer's Burden to Rebut the Claim
Once the employee has met the prima facie requirement, the burden shifts to the employer. To rebut the presumption, the employer must provide substantial evidence that the injury is not related to employment.
This evidence must do more than suggest doubt. It must provide a reasonable alternative explanation for the injury. If successful, the presumption falls away, and the employee must then prove the claim by a preponderance of the evidence.
Real-World Scenarios Where USL&H Insurance Applies
The Longshore Act is interpreted broadly, often in favor of the injured worker. Below are examples of injuries that may qualify for maritime workers’ compensation coverage:
Aggravation of a pre-existing condition: If job duties worsen an existing condition, the aggravation may be treated as a new injury.
Psychological injuries: Work-related mental health conditions can be covered even without a physical injury.
Recreational activities encouraged by the employer: If the employer sponsors or approves regular recreational activities and an injury occurs, the claim may be compensable.
Injuries from policy violations: If an employee violates a rule but is still performing job-related duties, the injury may still qualify.
Medical exams and vocational rehabilitation: Injuries sustained during employer-scheduled exams or rehab may be considered work-related.
Fights in the workplace: Injuries from altercations may qualify if the employment environment played a role.
Commuting exceptions: While regular commuting is not usually covered, injuries may be compensable if the employer provides transportation or if the employee is running a work errand.
Why Proper USL&H Insurance Matters
When an incident occurs at your facility, your business needs to be protected. USL&H insurance coverage is more than a regulatory requirement. It is a critical component of your risk management strategy. Without proper coverage, a single claim can lead to significant legal and financial consequences.
Bottom line: If in doubt, do not do without.
