Do You Need USL&H Insurance? Avoid Costly Workers' Comp Claims Near Water

Does your business work near water? USL&H insurance protects businesses from denied workers' comp claims. Learn more

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USL&H Coverage: What You Don’t Know Can Hurt You

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.

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How to Determine If You Need USL&H Coverage

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.

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Case Studies: How a USL&H Endorsement Can Make or Break a Claim

Many businesses assume their state workers’ compensation policy is enough—until a claim proves otherwise. These real-life cases highlight why it is critical to notify your insurance agent when working near water.
Case 1: The Carpenter Building a Pier
Case: Trotti & Thompson v. Crawford
Scenario: A carpenter was injured while constructing a pier over navigable waters. Even though he was not a maritime worker, the injury occurred on a structure over water, qualifying it under USL&H coverage.
Outcome: Paid under the USL&H endorsement because the jobsite was a maritime situs.
Takeaway: If your construction work involves docks, piers, bulkheads, or bridges over water, USL&H coverage is essential to avoid denied claims.

Case 2: The Electrician Performing Shipyard Repairs
Case: Wade v. Ingalls Shipbuilding Corp.
Scenario: A maintenance electrician was responsible for electrical repairs on cranes and equipment used in ship construction at a shipyard. The employer argued that he was not a maritime worker since he worked on equipment rather than ships.
Outcome: Paid under the USL&H endorsement because shipyards qualify as maritime situs locations.
Takeaway: Even maintenance workers in a maritime environment can fall under USL&H coverage. If your employees service cranes, heavy equipment, or infrastructure in shipyards or docks, you need USL&H coverage.

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Key Takeaway: Don’t Wait Until a Claim Happens

If your work takes you near navigable waters, it is critical to ensure your insurance policy matches your exposure:

• Occasionally work near water? → A USL&H endorsement may be enough.
• Frequently work on piers, docks, or marine structures? → A stand-alone USL&H policy is necessary.
• Assuming state workers' comp is enough? → You risk denied claims, lawsuits, and compliance penalties.

What To Do Next: 

Many businesses don’t realize they have USL&H exposure until it is too late. If your work takes you anywhere near navigable waters, you need to review your policy before an injury occurs.
Contact The Granberry Agency to Review Your Coverage Today.

• Call Us: 601-755-2468
• Address: PO BOX 345, Sumrall, MS 39482
• Email: [email protected]
• Website: www.thegranberryagency.com
• YouTube: Granberry Agency YouTube
• LinkedIn: Granberry Agency LinkedIn

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Frequently Asked Questions: USL&H Insurance

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.