Covering the Waterfront: Maritime Workers Comp for Independent Agents
For most commercial clients, workers compensation follows state law. Waterfront employers are different. When employees work on or near navigable waterways, federal maritime workers comp requirements may apply, creating a separate coverage obligation that many employers and generalist insurance programs miss.
For independent agents, that gap creates both risk and opportunity. A contractor repairing a pier, a terminal operator moving cargo, a shipyard repairing vessels or a logistics company working near the port may have exposure that does not fit neatly inside a standard state act workers comp policy. Knowing when to ask the next question can help protect your client and position your agency as a stronger advisor.
What Makes Maritime Workers Comp Different?
The primary federal law governing this exposure is the Longshore and Harbor Workers’ Compensation Act, often called the LHWCA or USL&H. The Longshore Act operates independently from state workers comp systems and carries its own compliance requirements.
When coverage is required, an employer generally must secure it through a carrier authorized by the U.S. Department of Labor to write longshore coverage or obtain approval to self-insure. Failing to secure the right coverage can create serious consequences, including legal remedies beyond a standard workers comp claim and potential personal liability for corporate officers.
Who Needs USL&H Coverage?
The answer usually comes down to two tests: status and situs.
Status asks what the employee does. Covered employees include longshoremen, harbor workers, ship repairers, shipbuilders, ship breakers and others engaged in maritime employment. The exposure can also extend to workers who support maritime operations, even when maritime duties are only part of their regular role.
Situs asks where the work is performed. Coverage may apply to navigable waters and adjoining areas such as piers, wharves, dry docks, terminals and other locations customarily used for maritime activity.
When both tests are met, the Longshore Act can apply even if the employer already has a state workers comp policy.
Where Agents Should Look for Hidden Exposure
Maritime exposure is best identified by operations, not only by classification codes. High-probability accounts include shipbuilders, ship repairers, stevedores, cargo handlers, terminal operators, port operations, tug and barge services, offshore businesses, coal docks and vessel service companies.
But some of the most important opportunities are less obvious. Marine construction, dock repair, dredging, piling, waterfront maintenance, port-adjacent warehousing, freight forwarding, fuel terminals, steamship agents, luxury yacht builders, mixed-duty facilities and contractors working near water can all raise questions worth reviewing.
For agents, the practical rule is simple: if a client’s employees work on, over or adjacent to navigable water—or support operations that do—it is worth having the exposure evaluated.
How AEU Helps Independent Agent
Maritime workers comp is not a niche that agents need to master alone. What matters is recognizing the possibility of exposure and having a specialist partner ready when the question comes up.
The American Equity Underwriters Inc. (AEU) delivers specialized coverage and risk management solutions for waterfront employers across the U.S. AEU supports independent agents with USL&H, state act workers comp, maritime employers liability, marine general liability and automobile liability coverages.
Maritime workers comp may be specialized, but the first step is straightforward: Look at your book for clients operating on or near navigable waterways, ask how their employees support waterfront activity and confirm whether their current program responds correctly.
To learn more or discuss an account, visit amequity.com. For deeper guidance on maritime workers comp, safety, claims and Longshore Act issues, visit The Longshore Insider.
