If your business occasionally operates near navigable waters, you may be exposed to federal workers’ compensation laws without realizing it. The United States Longshore & Harbor Workers’ Compensation Act (USL&H) extends beyond traditional maritime work and can impact contractors, electricians, painters, maintenance workers, and many other industries.

Many business owners assume that state workers’ compensation is sufficient, but a single claim can reveal dangerous coverage gaps. Without USL&H insurance, you could face lawsuits, major fines, or even personal liability.

Common Mistakes That Put Businesses at Risk:

• Assuming "temporary work near water" does not require USL&H coverage.
• Believing "state workers’ comp is sufficient" when maritime exposure exists.
• Failing to notify an agent when bidding jobs near or on navigable waters.

To determine whether your business requires USL&H coverage, consider these two critical tests:
1. Situs Test (Location-Based Coverage)
USL&H applies if work is performed on, over, or adjacent to navigable waters, including:

• Piers, docks, wharves, or terminals
• Bulkheads, seawalls, or marine facilities
• Shipyards and dry docks
• Areas adjoining navigable waters where maritime work occurs

If your employees set foot in these locations for work, even temporarily, you may need USL&H coverage.

2. Status Test (Job Duties Matter)
Even if a job site is near water, an employee must be performing work related to maritime operations for USL&H to apply. The following roles often qualify:

• Construction, maintenance, or repair of docks, piers, or bridges over water
• Shipbuilding, ship repair, or shipbreaking
• Cargo handling, loading/unloading vessels
• Mechanical, electrical, or structural work supporting marine operations

If your workers perform any of these duties—even if primarily land-based—you should review your coverage with your agent.
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While this discussion focuses on contractors, USL&H laws can apply to many other industries that have incidental exposure to maritime work. Any business with employees working near navigable waters should carefully assess their coverage needs.

What is USL&H Insurance?
USL&H insurance covers workers near water under federal law when state workers’ comp doesn’t apply.

Do I Need USL&H if I Work Near a Pier?
Yes! Even temporary work on piers, docks, or bridges may require USL&H coverage.

What Happens If I Don’t Have USL&H Insurance?
Without USL&H, workers’ comp claims may be denied, leading to lawsuits, fines, and liability issues. By ensuring your business has the right USL&H coverage, you can:

• Protect your employees from uncovered injuries.
• Avoid costly lawsuits and fines.
• Stay compliant with federal law.

Is The Jones Act Different From USL&H? 
YES! Here is a brief comparison:      

• Jones Act: Applies to "seamen," defined as individuals who spend a significant portion of their employment (typically at least 30%) on a vessel in navigation and contribute to its function or mission.
• USL&H: Covers land-based maritime workers, such as dockworkers, shipbuilders, and harbor construction workers, who are not considered seamen.

Don’t let one job site put your business at risk. Contact The Granberry Agency today to review your coverage.
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​👉 Call us at 601-755-2468 or visit www.thegranberryagency.com to request a coverage review.

The Jones Act (Merchant Marine Act of 1920) protects seamen—workers who spend at least 30% of their time on a vessel in navigation—by allowing them to sue employers for negligence if injured on the job. Unlike standard workers' compensation, Jones Act claims require proving employer fault or unseaworthy vessel conditions.

Both the Jones Act and USL&H (United States Longshore & Harbor Workers' Compensation Act) provide maritime worker protections, but they apply to different employees:

• Jones Act: Covers seamen (e.g., captains, deckhands, engineers) who actively contribute to a vessel’s mission.
• USL&H: Covers land-based maritime workers (e.g., dockworkers, shipbuilders) who are not considered seamen.

If your business employs seamen, you may be liable under the Jones Act. Common vessel types include:

• Fishing boats
• Tugboats
• Barges
• Offshore rigs (if floating, not fixed platforms).

📌 Fixed offshore platforms are not covered under the Jones Act—workers there fall under the Outer Continental Shelf Lands Act (OCSLA).

Who qualifies as a seaman?
A worker who spends at least 30% of their time aboard a vessel in navigation and contributes to its mission.

Can an employee file both a Jones Act and USL&H claim?
No, a worker qualifies for one or the other, not both. Seamen fall under the Jones Act, while land-based maritime workers are covered by USL&H.

What happens if I don’t carry Jones Act coverage?
You could face lawsuits, financial penalties, and liability for negligence claims. Proper coverage protects your business.

Ensuring compliance with the Jones Act is not only a legal requirement but also a critical aspect of protecting your employees and business interests.
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Contact The Granberry Agency Today to Review Your Jones Act Coverage.

• Call Us: 601-755-2468
• Address: PO BOX 345, Sumrall, MS 39482
• Email: [email protected]
• Website: www.thegranberryagency.com
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• LinkedIn: https://www.linkedin.com/company

Workers' Compensation insurance is a critical component for any business, especially in Mississippi where costs can significantly affect a company's bottom line. Understanding your Experience Modification Factor, or "experience mod," is key to managing these costs effectively. An experience mod is a numerical representation of your company's safety record compared to others in your industry, determined by the National Council on Compensation Insurance (NCCI).