The 50-Foot Rule: How Proximity Relates to USL&H

Who needs USL&H insurance when working near the water? The answer is less geographic than most people assume. Recreational marine businesses operate on and alongside navigable waters, and building the right marine liability insurance coverage for them depends on considerably more than a tape measure.

The so-called “50-foot rule” is informal shorthand in the marine industry — the idea that employees working within a short distance of the water fall under the Longshore and Harbor Workers’ Compensation Act. However, USL&H eligibility is generally based not on a fixed distance from the shoreline, but rather on where qualifying work is performed and the nature of an employee’s duties.

Looking Beyond Waterfront Proximity

Working near navigable waters does not automatically trigger USL&H requirements. It does mean the account deserves more than a glance. The starting point is pairing job locations with employee responsibilities — what people do and where they do it — rather than estimating distance from the water’s edge.

Consider a marine service business whose technicians spend much of the week performing repairs on customer vessels tied up at the dock. Some of that work happens over the water, some on the pier, and some in the shop. 

That mix is worth examining because federal maritime exposures may exist alongside traditional workers’ compensation considerations. The same logic applies to waterfront construction and maintenance projects, where crews move between land and water throughout a single day.

Daily Duties Define Exposure

Employees engaged in vessel repair, construction, loading, unloading, or similar qualifying waterfront activities can present different insurance considerations than administrative or retail staff at the same marine business.

Picture two people at the same marina. One runs the ship’s store, handles reservations, and processes payments, occasionally walking the dock to greet customers. The other spends most days performing engine work and hull repairs on vessels in slips and on the hoist. 

It’s the same employer, same address, and same body of water — and only one of them regularly performs the kind of work that warrants a USL&H evaluation. Employees at the same location may require different coverage considerations because of their day-to-day responsibilities, not because they share a parking lot.

Shared-access models add to the challenges, as staff may take on job responsibilities outside their standard roles. Boat clubs and rentals are driving higher turnover at marinas, with boats cycling in and out daily rather than seasonally and facilities handling more frequent docking, fueling, and cleaning. The person hired for the front desk may end up handling lines, moving vessels, or assisting with service — and the job description may not reflect it.

Rethinking the 50-Foot Rule

Rules of thumb can be excellent conversation starters with a client. They should never replace reviewing their actual operations, employee responsibilities, and waterfront work environment.

Ask what employees do on a typical day, how often they do it, and where the work physically occurs. Inquire whether duties have shifted as the business has taken on new services or heavier traffic. Those answers tell you far more about whether a USL&H discussion is warranted than any distance from the shoreline ever will.

About Merrimac Marine Insurance

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