If you’re a marine contractor, you probably know the terms “Jones Act” and “USL&H,” but do you know which one actually applies to your crew? One misclassification could lead to a denied claim—and that could sink your entire business.
The Breakdown:
- Jones Act: This federal statute protects “seamen” who are injured while working aboard vessels in navigation. To qualify as a seaman under the Jones Act, an employee must spend at least 30% of their time aboard a vessel or fleet of vessels and contribute to its mission or function. This includes captains, deckhands, commercial divers, and others who perform navigational or operational duties.
- USL&H (Longshore and Harbor Workers’ Compensation Act): This law provides workers’ compensation coverage for maritime employees who work in or near navigable waters but are not members of a vessel’s crew. Think dockworkers, crane operators, and shipbuilders. USL&H covers injuries that occur on piers, wharves, dry docks, terminals, and similar locations.
- Why it matters: These coverages are mutually exclusive. Seamen covered under the Jones Act are explicitly excluded from USL&H benefits, and vice versa. Misclassifying workers can lead to:
- Uncovered claims
- Costly litigation
- Overlapping premiums
- A common mistake we see: clients include Jones Act employees in their USL&H payrolls. This results in paying twice for coverage that doesn’t apply.
- We’ve corrected dozens of these overlaps—saving marine contractors tens of thousands and avoiding gaps that could cripple operations after a serious injury.
