Updated rules clarify security requirements under federal law.
The U.S. Department of Labor (DOL) published new guidance outlining how insurers’ required security deposits will be calculated under the Longshore and Harbor Workers’ Compensation Act (LHWCA). The guidance provides a standardized and transparent framework for determining insurers’ financial obligations—taking into account factors such as financial stability, claims-handling experience, and timeliness of payments to injured workers.
“As we restore America’s maritime and energy dominance, the Department of Labor continues to put American workers’ safety and health first,” said Secretary of Labor Lori Chavez-DeRemer. “These guidelines will protect workers while creating a fairer environment for businesses that do vital work for our country.”
Administered by the Department’s Office of Workers’ Compensation Programs (OWCP), the LHWCA requires insurance carriers to secure their potential liabilities when covering workers in maritime and related industries. While existing law has allowed reduced security requirements for insurers meeting certain criteria, the department had not previously issued formal guidance.
As the Lord Leads, Pray with Us…
- For discernment for Secretary of Labor Chavez-DeRemer as she oversees the update to insurance regulations.
- For U.S. regulators to implement insurance and labor policies consistently and responsibly.
- For industry officials as they seek to balance worker protection and financial sustainability.
- For dock and harbor workers who rely on timely and fair compensation benefits.
Sources: Department of Labor
