Longshore and Harbor Workers' Compensation Act Coverage Endorsement: What Employers Need to Know

What Is the Longshore and Harbor Workers' Compensation Act Endorsement?

The Longshore and Harbor Workers' Compensation Act (LHWCA) endorsement is a specific addition to an employer's liability or workers' compensation policy that extends coverage to employees who work on the waterfront, including dock workers, crane operators, and other maritime personnel. It applies to all U.S. ports and extends beyond the typical state workers' comp limits when a marine injury occurs.

Coverage Scope and Limits

When the endorsement is in place, the employer's policy covers:

• Medical expenses and loss of wages for injuries sustained while on the job at any U.S. port, regardless of where the injury is treated.
• Death benefits for employees who die as a result of a workplace injury.
• Permanent or temporary disability benefits, up to the limits specified in the endorsement.

Typical endorsement limits are set at the federal level: the maximum medical expense is $1,500,000 per injury, and the maximum death benefit is $5,000,000. These limits are higher than many state policies and provide a safety net for large claims.

Eligibility and Exclusions

To qualify for LHWCA coverage, employees must:

• Work on or near a U.S. port or harbor.
• Perform tasks such as loading, unloading, or handling cargo.
• Be employed by a company that has the endorsement in its policy.

Exclusions include:

• Injuries that occur outside a port setting, even if the employee is a longshore worker.
• Acts of war or terrorism.
• Intentional misconduct by the employee.

Adding the Endorsement to Your Policy

Employers can add the LHWCA endorsement by:

• Contacting their insurance broker or carrier to request the endorsement.
• Providing proof of port-based operations and employee rosters.
• Paying the additional premium, which varies based on employee count and risk profile.

Once added, the endorsement automatically applies to all covered employees without the need for individual rider additions.

Regulatory Requirements and Reporting

Under the LHWCA, employers must:

• File a Notice of Claim within 30 days of an injury.
• Submit a Claim Report to the National Longshore and Harbor Workers' Compensation Insurance Fund (NLHWCF) if the injury is not covered by the employer's policy.

Failure to report can result in penalties and loss of coverage for future claims.

Benefits for Employers and Workers

For employers:

• Reduces financial exposure by capping maximum liability.
• Enhances compliance with federal regulations.
• Improves employee retention by offering robust protection.

For workers:

• Ensures access to medical care and wage replacement regardless of state policy differences.
• Provides a higher death benefit than most state plans.

Common Misconceptions

Many believe the LHWCA endorsement automatically covers all waterfront workers. In reality, only employees who meet the specific eligibility criteria are covered, and coverage does not extend to non-port activities.

Another misconception is that the endorsement replaces state workers' comp. It is additive; state limits still apply for non-port work.

Next Steps for Employers

To secure LHWCA endorsement:

• Audit your workforce to identify port-based employees.
• Consult with a broker experienced in maritime insurance.
• Review policy language to confirm coverage limits and exclusions.

Staying proactive ensures that your employees receive the protection they need while keeping your organization compliant with federal law.