LIG | Longshore News

Real World Scenario: When "Just Use State Comp" Becomes a $300K Problem

Three months ago, an agent called us about a client who'd just received a Longshore claim for an injury that happened on a Tuesday afternoon dock inspection. The employee spent approximately 10% of his time near water. The business had carried state workers' compensation for eight years without issue.

The claim was denied. State comp doesn't cover Longshore exposures, and the employer is now facing the full cost of the injury, medical expenses, legal fees, and potentially tort liability and personal liability of the officers! The business owner wants to know why nobody told him this could happen. The agent wants to know how to prevent this conversation with every other client.

This isn't a story about a careless agent. It's about how Longshore exposure hides in plain sight.

The Real Problem: It Doesn't Look Like Marine Work

Most agents know that vessel crews need Jones Act coverage. Longshore feels like it should be just as obvious—but it's not.

Here's what actually triggers Longshore exposure, and why it catches people off guard:

The work happens near water, not necessarily on it. An employee can spend their entire day on a dock, never step onto a vessel, and still fall under Longshore jurisdiction. Location matters more than most agents realize.

Job titles don't tell you what you need to know. We've seen "maintenance supervisor" positions that trigger Longshore and "dock worker" positions that don't. What matters is where the person physically performs their duties—and that can change by project, season, or even day of the week.

"Occasional" doesn't mean "exempt." If an employee steps onto a vessel twice a month to check equipment, that's enough. If they help load a vessel during the busy season or when someone is off sick or on vacation, that's enough. Frequency doesn't determine coverage—the nature of the work does.

State comp and Longshore aren't interchangeable. They're separate systems with different rules, different benefits, and no overlap. Assuming one covers the other is how employers end up uninsured for injuries that actually happened.

Last year's setup doesn't account for this year's operations. Businesses expand into new locations, take on different projects, or start serving marine clients without thinking through the coverage implications. Nobody announces "we now have Longshore exposure"—it just appears.

The Conversation Most Agents Avoid (But Shouldn't)

When you suspect Longshore exposure, you're probably dreading the conversation. The client doesn't think they need it. They've never had it before. They're going to push back on the additional premium.

Here's how to frame it:
"I'm seeing some work near navigable water in your operations, and I want to make sure we're covering it correctly. If any of your employees are injured while working on or near the waterfront—even if it's not their primary job—state workers' comp likely won't cover it. That leaves you exposed to the full cost of the claim. Let's figure out what you actually need."

You're not selling additional coverage. You're identifying a gap that already exists.

The pushback you'll hear most often: "We've been doing this for years and never needed Longshore." That might be true. It's also irrelevant. What matters is what happens the day after an injury, not the years before it.

What to Do Next

If you have clients with any waterfront exposure—docks, terminals, marinas, shipyards, vessel maintenance, marine construction—don't assume the current structure is handling it.

Start with three questions:

1. Do any employees work on, over, or immediately next to navigable water, even occasionally?

2. Do they ever board vessels, even briefly, as part of their job?

3. Has the business added new locations, clients, or services in the past two years?

If the answer to any of these is "yes" or "I'm not sure," it's worth a deeper look.

[Download the Longshore Triggers Checklist]

We've created a checklist that walks through the most common Longshore scenarios agents miss. It takes about three minutes to complete and will tell you whether a closer review is warranted.

[Schedule a 15-minute Longshore review call]

If you'd rather just talk through a specific account, we're happy to do that. No obligation, just a straightforward conversation about whether Longshore applies and what to do about it.

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LIG Marine Managers

We help agents navigate complex marine exposures—including the ones that don't look complex until a claim happens.

The 5 Most Common Longshore Misconceptions and How to Advise Clients Correctly

Longshore exposure is one of the most challenging areas of marine insurance for agents. The U.S. Longshore and Harbor Workers’ Compensation Act (USL&H) regulations are complex, and coverage often hinges on the specifics of the work being done.

Two clients may look similar on paper but have very different exposure once you look more closely at job duties, work locations, and vessel involvement. Add in changing operations, mixed roles, or third-party labor, and it becomes easy to overlook something important.

Below are five of the most common misconceptions agents encounter when evaluating Longshore exposure, along with practical guidance on how to avoid them and better advise clients.

Download our Longshore Trigger Checklist

Misconception #1

“If employees are not working on a vessel, Longshore does not apply.”

Why this comes up:
Many agents associate Longshore coverage strictly with vessel work, so if employees are not regularly on boats, the exposure feels unlikely.

What to know:
Longshore exposure is not limited to vessel operations. Employees who work on or near navigable waters may still trigger Longshore, even if their primary duties are shore-based.

What to watch for:

Work at docks, terminals, marinas, or shipyards
Employees moving between land-based tasks and waterfront areas
Use of floating platforms or equipment

Misconception #2

“State workers’ compensation will cover it.”

Why this comes up:
Clients and agents alike often assume state workers’ compensation is sufficient, especially if the account has never had a Longshore policy in place.

What to know:
State workers’ compensation and Longshore coverage are not interchangeable. When Longshore applies, relying on state workers’ compensation alone can lead to coverage gaps and claim denials.

What to watch for:

Mixed land and waterfront duties
Work near navigable waters, even if infrequent
Assumptions based on how the account has been handled historically

Misconception #3

“Job titles tell me everything I need to know.”

Why this comes up:
Job titles are easy to reference and often used as shortcuts when evaluating exposure.

What to know:
Longshore exposure is driven by what employees actually do, not what their job titles say. Real-world duties often vary by project, location, or season.

What to watch for:

Broad or outdated job descriptions
Employees who perform multiple roles
Seasonal or project-based changes in responsibilities

Misconception #4

“Occasional waterfront work does not count.”

Why this comes up:
If waterfront work is only a small part of an employee’s role, it can feel insignificant from a coverage standpoint.

What to know:
Even limited or intermittent waterfront work can trigger Longshore exposure, depending on the circumstances. Frequency alone does not determine whether Longshore applies.

What to watch for:

Short-term projects near navigable waters
Employees stepping onto vessels as needed
Temporary assignments outside normal operations

Misconception #5

“If it was not required last year, it will not be required now.”

Why this comes up:
Once an account has been placed a certain way, it is easy to assume nothing has changed.

What to know:
Operations evolve, sometimes quietly. Growth, new contracts, expanded services, or changes in labor structure can introduce Longshore exposure without obvious warning signs.

What to watch for:

New locations or job sites
Expanded services or capabilities
Increased use of subcontractors or labor providers

How to Avoid These Pitfalls

Longshore exposure is rarely about a single factor. It is usually the result of multiple details coming together. The key for agents is knowing which questions to ask and recognizing when a closer review is warranted. For a quick way to identify common triggers, start with LIG’s Longshore Trigger Checklist. When details are unclear or operations fall into a gray area, LIG’s marine underwriters can help confirm exposure and guide next steps before coverage is structured.

Why This Matters
Taking the time to evaluate Longshore exposure upfront helps protect your clients and helps avoid difficult conversations – and costly E&O exposure – later. With the right information and the right underwriting support, even complex situations can be handled with confidence.

Questions about Longshore exposure?

LIG’s Marine Underwriters are here to help you navigate it with confidence. Contact us at Ask@LIGMarine.com or call 727-578-2800.

Download our Longshore Trigger Checklist to quickly and confidently assess you client's Longshore exposure.

Why the Longshore Act Still Matters: A Century of Protection for Maritime Workers

For insurance agents working with marine businesses, understanding the Longshore and Harbor Workers’ Compensation Act (LHWCA) is essential. This federal law has shaped the protection of thousands of waterfront workers for more than 100 years, and it continues to evolve today. But how did we get here?

From Legal Gap to Lifesaver: The Birth of the Longshore Act

In 1917, a Supreme Court decision (Southern Pacific Co. v. Jensen) ruled that states couldn’t provide workers’ compensation for injuries that occurred on navigable waters. That left a dangerous gap in coverage—until the Longshore Act was passed in 1927. The Act created a federal system to protect shipbuilders, harbor workers, and longshoremen.

Key Amendments That Changed the Game

Major updates in 1972 expanded coverage beyond vessels and docks to include adjacent areas, such as piers and marine terminals. Survivor benefits and maximum compensation rates were also improved.

In 1984, additional changes clarified who was (and wasn’t) covered. Recreational vessel workers under 65 feet, certain office personnel, and aquaculture workers were excluded if state comp laws protected them.

Adapting to a Changing Industry

In the 2000s, the Act was updated again to reflect shifts in maritime work. The 2009 American Recovery and Reinvestment Act expanded exclusions for recreational vessel repairers, after 10 years of lobbying led by the Marine Industries of South Florida. The 2009 expansion was then amended by rules published by the Office of Workers' Compensation Programs, released late in 2011. Then, in 2023, proposed regulations targeted employer penalties for failing to accurately report injuries—showing how the law continues to evolve in response to workplace realities.

Key Extensions of the Act

The reach of the LHWCA goes far beyond traditional longshore and harbor workers. Congress has extended its provisions to several other groups, adding layers of complexity to who’s actually covered:

Defense Base Act (DBA): Covers civilian employees of U.S. government contractors working overseas.
Outer Continental Shelf Lands Act (OCSLA): Covers workers involved in offshore exploration and development of natural resources—like oil rig crews.
Nonappropriated Fund Instrumentalities Act (NAFIA): Applies to civilian employees of military-run services, such as base exchanges and recreational facilities.

Understanding who is covered is just as important as what is covered. Between special extensions, evolving definitions, and overlapping jurisdictions, navigating Longshore coverage isn’t always straightforward—especially for agents trying to do it alone.

For agents, the Longshore Act’s ongoing evolution means one thing ...

Risks change, and so should coverage strategies. Whether your client is a marine contractor, terminal operator, or recreational vessel builder, the rules surrounding Longshore coverage can affect their exposure—and your liability.

Need help navigating it all?

LIG Marine Managers has been specializing in Longshore for over 30 years. We’ll help you identify potential coverage gaps and find the best solution for your client’s needs.

Have a Longshore risk to review?

Send submissions to Submit@LIGMarine.com or visit LIGMarine.com to connect with one of our Longshore experts.

A New Wave: The ECO Liberty Ushers in Hybrid Offshore Wind Support

Edison Chouest Offshore has launched the first U.S.-built plug-in hybrid vessel designed to support offshore wind operations. ECO Liberty is the first Jones Act–compliant plug-in hybrid Service Operations Vessel (SOV) in the U.S. offshore wind sector.

This innovation marks a pivotal step in the transition toward cleaner, more efficient maritime operations. The vessel can operate using traditional diesel power or switch to battery-electric mode, reducing emissions while improving fuel efficiency. As the offshore wind sector grows, technology like this is set to play a key role in balancing environmental responsibility with the heavy demands of marine operations.

For marine businesses, these advancements are more than just headline news—they signal a shift in the risks and exposures that operators face. New propulsion systems, alternative fuels, and hybrid technologies all bring unique considerations in terms of crew training, maintenance, and liability. From an insurance perspective, it’s vital to anticipate these changes so businesses can remain fully protected as the industry adopts greener technology.

As innovation transforms the marine industry, our 35+ years of expertise in commercial marine and Longshore coverage ensure you and your clients are always a step ahead. The experts at LIG Marine Managers specialize in identifying potential gaps and building customized insurance solutions that evolve with the industry. Whether it’s protecting offshore contractors, vessel operators, or marine employees, we deliver the knowledge and support agents need to provide their clients with peace of mind.

Ready to talk about how these changes could impact your clients?
Reach out to us today, and let our team shop the market and find the right coverages for your clients.

The Cost of Rushing: How One Small Oversight Led to Serious Injury

In the rush to get a vessel underway, small details can have major consequences. A recent incident involving a bulk carrier and a pilot attempting to board serves as a stark reminder.

Working quickly to get the vessel underway on schedule, the crew prematurely disconnected the gangway, removing the safety netting, and unintentionally leaving a dangerous gap between the accommodation ladder and the pier. When the pilot arrived, he found the gap too large to cross safely. Focused on final departure preparations, the crew did not respond to his communication attempts. Frustrated after several failed attempts, the pilot tried to climb onto the ladder himself but lost his footing and fell into the water, suffering broken ribs, a back injury, and deep bruises. Fortunately, his life jacket kept him afloat until emergency responders arrived. However, the incident delayed the vessel’s departure by 48 hours and left the pilot unable to work for months. Had the pilot hit his head or been crushed between the ship and the pier, this could have been a fatal accident.

This situation highlights the critical need for comprehensive marine insurance. Whether it’s Longshore coverage for injured workers, Maritime Employers' Liability (MEL) for crew exposure, or Protection & Indemnity (P&I) for liability risks, the right insurance ensures that businesses are protected from financial fallout when accidents occur. A single injury like this can lead to costly medical expenses, lost wages, and legal claims — expenses that could cripple an uninsured operation.

Investing in proper risk management and insurance coverage isn’t just about compliance; it’s about safeguarding your business, your crew, and everyone who steps aboard.

If you have questions about your marina client’s coverage needs, contact our expert Longshore team at Ask@LIGMarine.com.

Mark Greenway

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