Ensuring USL&H Compliance In Q1 2025 For Marine Employers

The United States Longshore and Harbor Workers’ Compensation Act (USL&H) provides essential workers’ compensation coverage for maritime employees who are not covered under traditional state workers’ compensation laws.

USL&H provides injured longshore and harbor workers with medical treatment and financial support for disabilities. This coverage protects marine employers from significant financial liability while maintaining a safe working environment.

Q1 2025 is a crucial period for staying compliant, as regulatory updates and stricter enforcement trends could impact coverage requirements and employer obligations. Insurance agents must stay informed on these changes to provide accurate guidance and help clients avoid potential penalties or coverage gaps.

Key USL&H Compliance Requirements for 2025

Understanding the core USL&H coverage requirements is essential for marine employers to maintain compliance and protect their workforce.

• Worker eligibility: USL&H Covers maritime employees such as longshore workers, harbor workers, and shipbuilders engaged in work on or near navigable waters. Employees must meet both “status” (job duties) and “situs” (work location) tests to qualify.
• Employer obligations: Marine employers must secure USL&H coverage through an approved insurer or authorized self-insurance program. Failure to maintain proper coverage can result in severe fines and liability for workplace injuries.
• Medical and disability benefits: Injured employees receive medical treatment, rehabilitation services, and compensation for temporary or permanent disability. Survivors of deceased workers may also receive death benefits.

Updates in claims processing, jurisdictional clarifications, or premium adjustments may affect employer responsibilities. Increased enforcement in Q1 2025 highlights the need for compliance reviews and proactive policy adjustments.

Common Coverage Gaps and Compliance Risks

Marine employers often make critical mistakes when structuring USL&H coverage, leading to compliance issues and financial exposure. One common issue is the misclassification of employees. Employers sometimes categorize maritime workers as state-only employees, leaving them without proper USL&H coverage. This oversight can result in denied claims and legal penalties, putting both the employer and the employee at risk.

Another frequent pitfall is maintaining improper coverage limits. Some policies fail to meet statutory minimums or exclude essential protections, which can leave employers responsible for out-of-pocket costs in the event of workplace injuries. Ensuring adequate coverage not only reduces financial risk but also protects businesses from potential liabilities.

Additionally, outdated policies can create coverage gaps, especially when employers fail to adjust policies in response to regulatory changes or workforce shifts. Without regular reviews, businesses may unknowingly fall out of compliance, leading to costly disputes and financial strain. By addressing these coverage gaps proactively, marine employers can safeguard their operations and ensure they meet all necessary legal requirements.

Best Practices for Advising Marine Employers

Insurance agents play a vital role in keeping their clients’ USL&H coverage current and compliant with evolving regulations.

• Conduct regular risk assessments: Evaluating job roles, work environments, and exposure levels helps identify coverage needs and prevent misclassification issues.  
• Perform policy audits: Reviewing existing policies helps confirm compliance with statutory requirements, maintain proper coverage limits, and address recent regulatory changes.
• Recommend industry-specific endorsements: Tailoring policies with endorsements for unique maritime risks, such as borrowed employee coverage or voluntary compensation, strengthens protection and minimizes liability gaps.

Ensuring Compliance and Protecting Marine Employers

Staying ahead of USL&H requirements helps marine employers avoid costly penalties and provide injured workers with the necessary coverage. Regular policy reviews, accurate employee classification, and proper coverage limits help businesses avoid financial risks and maintain regulatory compliance. 

Because insurance requirements can vary based on business operations, location, and other factors, employers should consult an experienced insurance agent for guidance. Additionally, they can contact their nearest Longshore District Office to discuss the specifics of their worksite and employment situation and ensure they meet all necessary legal requirements.

Insurance agents can rely on Merrimac Marine Insurance for expert guidance in navigating Q1 2025 compliance updates. Contact Merrimac Marine Insurance today for expert support in keeping your clients compliant and protected.

About Merrimac Marine Insurance

At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ businesses and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.