What is the difference between USL&H and Jones Act coverage?

• Legal basis: USL&H follows the Longshore and Harbor Workers' Compensation Act; Jones Act coverage follows the Jones Act and general maritime law.
• Who it covers: USL&H covers longshore workers, ship builders and repairers, and harbor workers on navigable waters or adjoining areas like piers and docks. Jones Act coverage covers seamen: crew who contribute to a vessel's function and have a substantial connection to it.
• How benefits work: USL&H pays no-fault scheduled medical and wage benefits. Seamen sue for negligence (and unseaworthiness against the vessel owner) and can recover lost wages, medical costs and pain and suffering.
• Fault-free benefits for seamen: maintenance (daily living costs) and cure (medical care) until maximum medical improvement.
• Policy form: USL&H is usually an endorsement to a workers' comp policy. Jones Act exposure is insured through maritime employer's liability, often under P&I or a workers' comp endorsement.

Under Chandris, Inc. v. Latsis (1995), a worker must (1) contribute to the function or mission of a vessel and (2) have a connection to a vessel in navigation, or a fleet, that is substantial in duration and nature. Courts commonly treat spending less than about 30% of work time in the service of a vessel as failing the duration requirement. Deckhands and charter crew usually qualify; a dock attendant who occasionally rides along usually doesn't.

The Longshore Act excludes many marina employees who aren't engaged in construction, replacement or expansion of the marina, and, since the 2009 amendment, workers who repair or dismantle recreational vessels of any length, provided they're covered by state workers' comp. For many small marinas and boatyards, that makes state workers' comp the right policy for most staff, with USL&H only for construction or commercial vessel work. Whether your business must carry state coverage at all is covered in who is exempt from workers' compensation insurance in California, and contractor status in do independent contractors need workers' comp in California.

Tell your insurer exactly what each employee does, where, and on which vessels, so payroll is classified correctly. USL&H rates are typically much higher than state rates, so misclassifying land-based staff as maritime is costly too. For limits on maritime employer's liability and the rest of your program, see how much business insurance do I need and our business insurance coverage and requirements hub.