Broker Resources
Is this USL&H?
The majority of calls that Alaska National (ANIC), WARP, and USL&H brokers receive in the realm of Longshore insurance is whether or not USL&H exposure would apply in a certain situation. Generally, WARP and ANIC will err on the side of caution and if something could be USL&H, we will recommend reporting it as such. This is for two major reasons.
The first and most important is that we need to make sure that the workers are adequately protected. USL&H work is performed near the water and is therefore riskier. The benefits are designed to reflect that.
Second, if a claim arises where there is a question, ANIC (subject to review of the specifics and jurisdictions involved) would need to budget for defense of the claim. So when they are looking at a situation, they are deciding whether Longshore applies but also whether there is a chance they would need to defend the insured, which can be costly.
This page is meant to assist with some of the most frequent questions we receive about whether USL&H applies for purposes of reporting payroll to WARP. It is not meant to be a substitute for advice from a maritime attorney.
If my client is just a vendor delivering to a maritime location (shipyard, etc.), do they need coverage?
It depends. And usually, yes, you do.
Subsection 902(3)(D) of the USL&H Act states that a vendor’s employee is not subject to the USL&H Act if the employee is (i) is temporarily performing services on the premises of a maritime business; (ii) is not engaged in work normally performed by employees of that maritime business; and (iii) is covered by a state’s workers’ compensation program.
If my client is a business with only one employee, do they still need USL&H?
It depends. Sole Proprietors are not considered a “maritime employer” but if they are a member of an LLC with only one employee, the sole member would be. USL&H does not have an exemption for executive officers like state workers compensation can. As a note, sole proprietors may be able to obtain a policy from WARP even though they are not required to do so; just let us know what is needed.
If my client is only doing work on recreational vessels, do they need USL&H?
It depends. The USL&H Act § 902 excludes "individuals employed to build any recreational vessel under sixty-five feet in length, or individuals employed to repair any recreational vessel, or to dismantle any part of a recreational vessel in connection with the repair of such vessel..." However, the USL&H Act includes individuals building recreational vessels 65' or longer or dismantling a recreational vessel when it is not in connection with the repair of that vessel.
Work, such as repair or installation of equipment, on recreational vessels may be subject to the USL&H Act if the vessel is chartered with a skipper or crew on "more than an infrequent basis" or chartered as a bareboat with more than 12 passengers. Additionally, workers who perform work on both recreational vessels under 65’ and commercial vessels may be subject to the USL&H Act, even for those periods of time when they are working on recreational vessels under 65’.
Does my client need coverage if they are working in foreign ports (like Vancouver, BC)?
No. The Ninth Circuit Court of Appeals ruled that, although the USL&H Act applies on the high seas subject to certain conditions, the Act does not apply to U.S. workers while working in the territorial waters of other countries. Therefore, USL&H coverage is not available through WARP for work in foreign ports. A copy of the Ninth Circuit decision (Keller v. Tracy) can be downloaded from WARP’s website.
Are there any cases where seafood processors and aquaculture operations need coverage?
Fishing and seafood processing operations are exempt from Longshore as they are considered aquaculture employees- this payroll goes to L&I. HOWEVER any supporting activity- such as stevedoring (unloading of fish from vessels) and warehousing is still subject to the act. Because courts do not like employees going in and out of coverage, the full payroll for any day that an employee is doing this work has to be reported as Longshore.
If my client has something in writing from the Port/ Navy/ General Contractor saying they don't need USL&H for a job, are they exempt?
Nope! You are still required to carry USL&H if you are working on a maritime situs and the work has maritime status. Many times the folks working on contract requirements are not permitted to include specific requirements, or might not understand when it is needed; however even confirmation from these entities will not exempt you from the Federal Requirements.