Maritime Employers Liability vs. USL&H: Key Differences for Marine Businesses

Many marine businesses employ workers who, on a daily basis, juggle both land-based and water-based tasks. The work can create overlapping exposures that often lead to confusion around workers’ compensation obligations. In particular, maritime employers liability (MEL) and USL&H coverage (that is, coverage for U.S. longshore and harbor workers) are frequently misunderstood, yet the distinction between them is critical.

When the wrong coverage is in place or coverage is missing entirely, claims can fall apart. But understanding how these coverages differ will help you keep your marine clients well-insured.

Why Marine Businesses Often Have Overlapping Employee Exposures

Marine operations rarely fit neatly into a single category. Marinas, boatyards, and waterfront service facilities often employ workers who shift between shop work, dock duties, and vessel-related tasks. A mechanic may tinker with boats in the yard one day and work aboard a vessel the next. Dockhands may handle lines, fuel vessels, or assist with loading and unloading.

Traditional state workers’ compensation policies are designed for land-based employment, not water. When work takes place on or near navigable waters, those policies may not respond as expected. This is where maritime-specific coverage becomes essential.

Purpose of Each Coverage

Marine employers often assume workers’ compensation alone addresses employee injury risk. Not so. Actually, maritime law creates separate obligations depending on where and how work is performed. Understanding the purpose of each coverage clarifies when additional protection is needed.

What Maritime Employers Liability Covers

Maritime employers liability exists to address employee injury exposures tied to maritime operations that fall outside standard workers’ compensation. It commonly applies when employees perform work on vessels or engage in waterborne activities that trigger maritime jurisdiction.

Businesses that frequently need this coverage include marinas, boatyards, marine contractors, ship repair operations, and waterfront service providers. Employees who need to be covered generally include dockhands, mechanics working aboard vessels, yard workers handling boats in the water, and mobile marine service crews.

Maritime employers liability is particularly important when state workers’ compensation does not respond because the injury arises from the maritime nature of the work.

What USL&H Covers

USL&H refers to coverage required under the Longshore and Harbor Workers’ Compensation Act. This federal statute applies to certain maritime employees injured while working on, near, or adjacent to navigable waters.

USL&H exposure is common in ship repair, shipbuilding, loading and unloading vessels, dock work, and marine construction. Employees working on piers, wharves, dry docks, or terminals may trigger USL&H requirements, even if they also perform land-based tasks.

Maritime Employers Liability vs. USL&H: Common Questions

Agents are frequently asked how these coverages differ and when each applies. Maritime employers liability generally addresses gaps where state workers’ compensation does not apply due to maritime activity. USL&H is a statutory workers’ compensation system mandated for specific harbor and shipyard-related roles.

Another common point of confusion is the Jones Act, which applies to seamen who meet specific criteria related to vessel operation and employment. Many marine workers don’t qualify as seamen but still fall under USL&H or maritime employers liability.

In practice, marine businesses with mixed operations often need both MEL and USL&H coverage to fully address employee injury exposure.

Placing Coverage Before a Claim Occurs

Determining whether maritime employers liability, USL&H, or both are required depends on employee duties, work locations, and operational structure. These distinctions matter most after an injury, when coverage gaps can result in denied claims or unexpected liability.

Fortunately, working with a marine-focused specialist such as Merrimac Marine Insurance can help any agent looking for guidance evaluate the type of waterfront exposures and structure coverage that your clients need.

About Merrimac Marine Insurance

At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ business and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.