USL&H Insurance: What It Covers and Why It’s Essential

USL&H insurance offers workers’ compensation protection for longshore and harbor workers, allowing them to receive benefits for work-related injuries or illnesses. USL&H coverage protects the financial interests of both employees and employers while minimizing potential liabilities.

Insurance agents with commercial marine clients must know USL&H coverage to advise on important worker protections. This insurance is crucial for protecting employers from liability related to employee injuries in marine environments. 

What Does USL&H Insurance Cover?

A comprehensive understanding of what USL&H insurance covers includes the following key components:

• Compensation for lost wages: Provides financial support to workers unable to work due to work-related injuries or illnesses
• Medical care: Covers necessary medical expenses related to the treatment of work-related injuries or conditions
• Rehabilitation services: Offers assistance for workers to regain their skills and abilities after an injury, facilitating a return to work
• Survivor benefits: Provides financial support for the dependents of workers who suffer fatal injuries while on the job, helping to maintain their financial stability

USL&H coverage specifically addresses the unique risks of maritime work, protecting longshore and harbor workers who are not included in state workers’ compensation programs. 

Unlike state coverage, USL&H encompasses injuries occurring on navigable waters and while loading or unloading vessels.

USL&H coverage includes several types of employees engaged in maritime work, such as:

• Longshore workers: Individuals involved in loading and unloading cargo from ships at docks and ports
• Harbor workers: Employees who perform various tasks related to the operation and maintenance of harbor facilities
• Other employees: Workers engaged in activities on navigable waters or in areas adjacent to them, including those involved in shipbuilding, repair, and maintenance operations

Why USL&H Insurance Is Essential for Commercial Marine Clients

USL&H coverage under the Longshore and Harbor Workers’ Compensation Act mandates that employers provide insurance for employees engaged in maritime work, giving them access to medical benefits, wage loss compensation, and rehabilitation services. Non-compliance can lead to penalties such as fines and legal liabilities.

Failure to secure USL&H coverage exposes commercial marine clients to financial risks and liabilities, including the potential for costly lawsuits resulting from on-the-job injuries. USL&H coverage mitigates these risks by providing essential financial protection against high-cost claims.

How To Advise Clients on Securing the Right USL&H Coverage

Insurance agents should assess client needs by evaluating the specific risks associated with their operations, including the types of work performed and employee roles. 

Regularly reviewing USL&H policies is essential for complying with legal requirements and adapting to evolving business operations. Additionally, agents should consider bundling USL&H coverage with other relevant policies, such as MEL and Jones Act insurance, to provide comprehensive protection.

Common Misconceptions About USL&H Coverage

Misunderstandings about USL&H often include who is eligible for coverage and when it is required, leading to gaps in protection for maritime workers. It’s crucial to clarify that federal USL&H requirements differ from state workers’ compensation laws, as USL&H applies specifically to maritime-related employment, while state laws cover general workplace injuries. 

Protecting Marine Employers with USL&H Insurance

Securing USL&H insurance is essential for commercial marine clients to meet legal requirements and safeguard against financial risks associated with workplace injuries.

Insurance agents must proactively review and recommend USL&H coverage to keep their clients adequately protected. For expert guidance on USL&H policies, consider partnering with Merrimac Marine Insurance.

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.