LHWCA or the Longshore and Harbor Workers Compensation Act is a federal law in the US. It covers both maritime and non-maritime people. Catering to employees who suffer injury or loss of life while working on navigable water. The Act gives those entitled to be compensated if injured while on the job. Also included is access to medical care and suitable rehabilitation, and benefits to provide to the dependents if the employee dies.
Which workers come under the purview of LHWCA?
- Longshore workers
- Ship repairers
- Harbor construction workers
The only pre-condition is a worker must be employed on navigable waters of the United States or any of the surrounding areas.
How does the coverage work?
Employers have to secure coverage for every worker, who comes under the LHWCA act. There are two alternatives available before every employer. One is to either achieve coverage through a registered insurance company. Alternatively, become an authorized self-insurer.
In the future, if an LHWCA claim arises and it is found that no coverage has been secured, then the employer becomes liable for this grave default. The employer will then attract a penalty of $10,000, face imprisonment for a period of up to one year or both.
Relevance amidst COVID-19
The question is what happens when a seaman is struck with COVID. LHWCA currently is in talks about offering maintenance for infected employees. Moreover, the news is employers will soon be required to compensate the employee infected by COVID. Similar to how they will compensate an employee who have injured himself in some other accident.
Types of compensation
Maintenance – Seaman is to be provided with an equivalent of the food. As well as lodging expenses that would be incurred by him while he is onboard the vessel.
Cure – Funding employees’ medical bills required to recover from this illness.
Apart from this, the worker is also entitled to full wages.
Top 3 Insurance Companies for securing coverage under LHWCA
Alliance West Insurance – One of the leading insurance companies as far as securing coverage under LHCWA goes. A company known for offering smart insurance solutions. In addition, offers flexible and personalized insurance plans.
CM Regent Insurance Co – One of the best picks as far as coverage under the Longshore and Harbor Workers Compensation Act is concerned. They stand out for the Injury Management Model that they offer to injured workers.
SAIF Corporation – Another big name in the area of LHWCA coverage. This is a non-profit worker’s compensation insurance company. Considered a pioneer in settling LHWCA claims as they have been around since 1914.
The oil and gas industry is already under a lot of financial stress. The worst thing to happen now is for their workers to fall ill or meet with an accident. Moreover, in the absence of appropriate insurance coverage, companies are sure to face further financial burdens. The reason why a full-proof COI that offers wholesome benefits is crucial.
Businesses are always exposed to the risk of an undesirable claim lawsuit. In addition, collecting, verifying, and reporting the Certificate of Insurance is crucial now more than ever. A time-consuming process that can and should be optimized. Which is exactly the reason why software like the COI Tracker were built.
If you are looking to secure coverage under LHWCA, make sure to take leads from the above information.