RULE XII – U.S LONGSHORE AND HARBOR WORKERS’ COMPENSATION ACT

The U.S. Longshore and Harbor Workers’ Compensation Act (U.S.L. & H.W. Act) is a Federal law which provides for payment of compensation and other benefits to employees such as longshore, harbor workers, ship repairmen, shipbuilders, ship-breakers and other employees engaged in loading, unloading, repairing or building a vessel. It applies to such employees while working on navigable waters of the United States and also while 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. It does not cover masters or members of the crew of a vessel. For complete details see U.S. Code(1946), Title 33, Section 901-49, amended by Public Law 92-576.

The standard policy is used to insure the statutory obligation of an employer to furnish benefits required byte U.S.L. & H.W. Act. Attach the Standard Longshore and Harbor Workers’ Compensation Act Coverage Endorsement (WC 00 01 06A) to provide such insurance. Do not designate the U.S.L. & H.W. Act in Item 3-Aof the Information Page.

For operations subject to the U.S.L. & H.W. Act, the standard limits of liability under Part Two are:

Bodily Injury by Accident: $100,000 – each accident

Bodily Injury by Disease: $100,000 – each employee

Bodily Injury by Disease: $500,000 – policy limit, Refer to Rule VIII.

1. Accident Limit 
   The limit of liability applies to all bodily injury arising out of any one accident.
2. Disease Limit
   The limit of liability also applies as a separate aggregate limit for all bodily injury by disease. The aggregate limit applies separately to bodily injury by disease arising out of work in each state shown in Item 3-A of the Information Page.
3. Show Limits on Endorsement 
   These limits of liability must be stated in the Maritime Coverage Endorsement and/or the Federal Employers Liability Act Coverage Endorsement.

1. Classifications
   Classifications for insurance under the U.S.L. & H.W. Act are listed in “Section 2 – Classifications” of this Manual.
2. Rates for Federal “F” Classifications
   The manual rates for classification code numbers followed by the letter “F” include premium for operations subject to the U.S.L. & H.W. Act
3. Rates for Non-Federal “Non-F” Classifications
   The Bureau Rating Values for classification code numbers not followed by the letter “F” do not include premium for operations subject to the U.S.L. & H.W. Act. If operations under such classifications involve some employees subject to U.S.L. & H.W. Act, the manual rates and minimum premiums for such classifications shall be increased by the U.S. Longshore and Harbor Workers’ Compensation Coverage Percentage, the value for which is shown in Section 2. Such increased rate shall apply only to payroll of employees engaged in operations subject to the U.S.L.& H.W. Act.

1. Defense Base Act The Defense Bases Act extends the provisions of the U.S.L. & H.W. 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 Bases Act, U.S. Code (1946) Title 42 Sections 1651-54,Public Law 208, 77th Congress.To provide such insurance, attach the Standard Defense Base Act Coverage Endorsement (WC 0001 01A).
2. Civilian Employees of Non appropriated Fund Instrumentalities ActThe Non appropriated Fund Instrumentalities Act extends the provisions of the U.S.L. & H.W. Act to civilian employees of non-appropriated fund instrumentalities such as post exchanges and service clubs of the Armed Forces. For complete details, see U.S. Code (1970) Title 5, Section 8171 (Public Law 85-538, 85th Congress).To provide such insurance attach the Standard Non appropriated Fund Instrumentalities Act Coverage Endorsement (WC 00 01 08A).
3. Premium DeterminationFor insurance under extensions of the U.S.L. & H.W. Act, determine premium as provided in Rule XII – D