The U.S. Department of Labor has issued new guidance that eases insurance security requirements for shipbuilders and other strategically important industries.
The guidance explains in clearer terms how insurance security deposits are calculated under the Longshore and Harbor Workers’ Compensation Act (LHWCA).
The department said the change is designed to reduce unnecessary financial pressure by introducing a more structured way to assess risk, without weakening protections for injured maritime workers.
Under the new system, several factors will be taken into account when deciding how much security an insurer must provide.
These include the insurer’s financial strength, its experience in providing LHWCA coverage, and how quickly it pays accepted claims.
While the law has always allowed security requirements to be reduced in certain cases, this is the first time a formal risk- and performance-based framework has been put in place.
Labour Secretary Lori Chavez-DeRemer said the guidance is intended to maintain worker safety while creating a fairer regulatory environment for businesses that support the country’s economic and national security interests.
The LHWCA and its extensions are overseen by the Department of Labor’s Office
Content Original Link:
" target="_blank">
