WC & EL / PART ONE / RULE XI:

The U.S. Longshore and Harbor Workers’ Compensation Act (USL & HW) is a Federal law that provides for payment of compensation and other benefits to eligible maritime employees such as longshore and harbor workers, ship repairers, shipbuilders, shipbreakers, and other employees engaged in loading, unloading, repairing, or building a vessel.

The USL & HW Act applies to such maritime employees, while working on navigable waters of the United States and working on any adjoining pier, wharf, dry dock, terminal, building way, marine railway, or other area adjoining such navigable waters customarily used for loading, unloading, repairing, or building a vessel.  Navigable waters are usually defined as those which form a continuous highway for interstate or international commerce.

The USL & HW Act does not cover masters or members of the crew of a vessel. It excludes repairers engaged in repairing a recreational vessel or dismantling any part of a recreational vessel in connection with repair of such vessel and excludes individuals employed to build any recreational vessel under sixty-five feet in length. For complete details see 33 U.S. Code Sections 901-950, as amended.

The Standard Policy is used to insure the statutory obligation of an employer to furnish benefits required by the USL & HW Act.  Attach the “Longshore and Harbor Workers’ Compensation Act Coverage Endorsement” (WC 00 01 06 A) to provide such insurance. Do not designate the USL & HW Act in Item 3.A. of the Information Page.

1. Explanation

   For operations subject to the USL & HW Act, the standard limits of liability under Part Two are:

1. Classifications

   Classifications for insurance under the USL & HW Act are listed as follows:

   Phraseology	Code
   Boat Building NOC – Wood & Drivers: Coverage under U.S. Act	6801F
   Boat Building or Repair & Drivers: Coverage under U.S. Act	6824F
   Marina Operations & Drivers: Coverage under U.S. Act	6826F
   Ship Building – Iron or Steel NOC & Drivers: Coverage under U.S. Act	6843F
   Ship Repair or Conversion – All Operations & Drivers: Coverage under U.S. Act	6872F
   Painting: Ship Hulls: Coverage under U.S. Act	6874F
   Ship Cleaning or Allied Operations & Drivers: Coverage under U.S. Act	6875F
   Stevedoring NOC	7309F
   Coal Dock Operation & Stevedoring	7313F
   Stevedoring: By Hand or Hand Trucks – exclusively	7317F
   Stevedoring: Containerized Freight & Drivers	7327F
   Freight Handlers – On Piers or in Terminals or Areas Adjoining Piers	7366F
   Stevedoring: Talliers and Checking Clerks Engaged in Connection with Stevedore Work – Coverage under U.S. Act	8709F
   Steamship Line or Agency – Port Employees: Superintendents, Captains, Engineers, Stewards or their Assistants, Pay Clerks	8726F

2. Rates: Federal “F” Classifications and Admiralty/FELA Classifications That Include USL & HW Act Benefits

   The carrier’s approved rates for classification codes followed by the letter “F” and those Admiralty/FELA classifications applicable to Program II - USL & HW Act benefits include premium for operations subject to the USL & HW Act.

3. Rates: Non-Federal “Non-F” Classifications and Admiralty/FELA Classifications That Do Not Include USL & HW Act Benefits

   The carrier’s approved rates for operations subject to the USL & HW Act, and not within the scope of classifications provided for in (2) above, are determined as follows:

   1. Admiralty/FELA Classifications

      The carrier’s approved rates for Admiralty/FELA classifications under Program I and Program II - State Act benefits do not include premium for operations subject to the USL & HW Act.  If operations under such classifications involve some employees subject to the USL & HW Act, assign the classifications and carrier’s approved rates for Program II – USL & HW Act benefits applicable to such operations subject to the USL & HW Act.

   2. All Other Classifications

      Except as otherwise provided in (2) and (3)(a) above, the carrier’s approved rates for classification codes not followed by the letter “F” do not include premium for operations subject to the USL & HW Act.  If operations under other than Admiralty/FELA classifications involve some employees subject to the USL & HW Act, the carrier’s approved rates and carrier’s minimum premiums for such classifications shall be increased by the U.S. Longshore and Harbor Workers’ Compensation Coverage Percentage shown on the “Miscellaneous Values” in Part Three – Loss Costs of this Manual.  Such percentage does not apply to carrier expense constant.  Such increased rates shall apply only to payroll of employees engaged in operations subject to the USL & HW Act.

      The increased rate procedure does not apply to incidental deliveries made on board vessels by employees of non-maritime concerns.

   3. Non-Federal “Non-F” Construction Classifications

      For construction classifications with employees subject to the USL & HW Act, the payroll limitation procedures set forth in Rule V Section (G) of this Manual apply.  The applicable territory differential shall be that of the territory immediately adjoining the waters upon which the work was performed.

1. Defense Base Act

   The Defense Base Act extends the provisions of the USL & HW Act to employers and their employees on overseas military bases and on other overseas locations under public works contracts being performed by contractors with agencies of the United States Government.  Employees who are not United States citizens may be exempted from coverage upon approval of a waiver by the Secretary of Labor.  For complete details, see Defense Base Act, 42 Sections 1651-1654, Public Law 208, 77^th Congress

   To provide such insurance, attach the “Defense Base Act Coverage Endorsement” (WC 00 01 01 A).

2. Outer Continental Shelf Lands Act

   The Outer Continental Shelf Lands Act extends the provisions of the USL & HW Act to employers and their employees exploring for natural resources on the Outer Continental Shelf of the United States.  That area is generally described as all submerged lands lying seaward and outside of the area of lands beneath navigable waters of the United States and subject to its jurisdiction. For complete details, see 43 U.S. Code, Sections 1331 et seq. Public Law 212, 83^rd Congress, as amended.

   To provide such insurance, a standard Workers’ Compensation and Employers’ Liability Policy shall be used with the “Outer Continental Shelf Lands Act Coverage Endorsement” (WC 00 01 09 C).

3. Civilian Employees of Nonappropriated Fund Instrumentalities Act

   This Act extends the provisions of USL & HW Act to civilian employees of nonappropriated fund instrumentalities, such as post exchanges and service clubs of the United States Armed Forces.  For complete details, see Nonappropriated Fund Instrumentalities Act, 5 U.S. Code Section 8171 – 8173 Public Law 397, 82^nd Congress, as amended.

   To provide such insurance, attach the “Nonappropriated Fund Instrumentalities Act Coverage Endorsement” (WC 00 01 08 A).

4. Premium Determination

   For insurance under extensions of the USL & HW Act, determine premium as provided in Section (D) of this Rule.