USL&H
The United States Longshore and Harbor Workers Compensation Act, a federal law requiring maritime employers to provide workers comp benefits to maritime employees.
What It Is
USL&H stands for the United States Longshore and Harbor Workers' Compensation Act, a federal statute that provides workers compensation benefits to maritime employees who work on navigable waters of the United States or in adjoining areas such as docks, piers, terminals, wharves, and shipbuilding facilities. USL&H coverage is separate from state workers compensation coverage and must be specifically endorsed onto the workers comp policy.
USL&H provides benefits similar to state workers comp — medical expenses, disability benefits, vocational rehabilitation, and death benefits — but the benefit schedule and administration differ. Claims are administered by the US Department of Labor rather than state workers compensation commissions.
USL&H coverage is required for employers whose workers perform duties on or near navigable waters. This includes dock workers, shipbuilders, ship repairers, marine terminal operators, and certain construction workers whose job sites adjoin navigable waters.
Why It Matters for Brokers
Brokers placing coverage for any employer with maritime or waterfront operations must determine whether USL&H coverage is required. Failure to include the USL&H endorsement when it is needed leaves the employer uncovered for federal maritime workers comp claims, which are administered under a different system than state claims. USL&H rates are typically higher than state workers comp rates because the benefit schedule is more generous, so accurate classification and proper endorsement are both coverage and financial concerns.
Real-World Example
A marine construction company builds piers and seawalls along the Gulf Coast. The company has 35 employees working on navigable waters and adjoining areas. The broker places workers comp with the USL&H endorsement, adding $42,000 to the annual premium over the standard state workers comp rate. A worker is injured while installing pilings in the harbor and files a USL&H claim for $215,000 in medical expenses and $180,000 in disability benefits. Because the USL&H endorsement is in place, the workers comp policy covers the $395,000 claim under federal maritime law.
Common Mistakes
- 1Not identifying USL&H exposure for construction clients whose projects are adjacent to navigable waters — the adjoining area test can apply to bridge builders, pier constructors, and waterfront developers.
- 2Assuming standard state workers comp covers maritime employees when USL&H is a separate federal coverage requirement.
- 3Not including USL&H rates in premium estimates, creating sticker shock when the endorsement adds 20-40% to the workers comp premium.
How brokerageaudit.com Handles This
Policy Checker identifies USL&H endorsements on workers comp policies and flags any account with maritime or waterfront operations that lacks the endorsement. Submission Intake includes questions about proximity to navigable waters and maritime operations to ensure USL&H exposure is identified during the quoting process.