Certificates of Insurance for Marine Work: Jones Act, USL&H and Why Yours Is Wrong
By Priya Raghunathan, Port authority procurement analyst. Reviewed by Dana Whitcombe, technical reviewer.
Marine Construction | Boat Lift Installation Last fall I was reviewing certificates of insurance for a wharf demolition contract when I stopped on a familiar red flag. The crane subcontractor had listed 'Jones Act – Maritime' on the workers compensation line. They were a rigging company. Not a vessel owner. Not a seaman. But some agent out there thought 'it's a port, so Jones Act.' That's like putting ketchup on a filet mignon – technically condiment, but completely missing the point. Here's what fifteen years of writing and scoring port authority RFPs has taught me: your marine contractor insurance certificate is probably wrong too. Not because you're dishonest, but because generic insurance brokers don't live in the maritime world. And when the wrong box gets checked, the port gets stuck holding a bag of risk nobody signed for. So let me break down the two coverages that actually matter for harbor work – Jones Act and USL&H – and then I'll show you exactly why your COI is going to get kicked off my desk.
Jones Act and USL&H: Not the Same Thing
The Jones Act, passed in 1920, gives a certain group of workers – seamen – the right to sue their employer for injuries caused by negligence. Think deckhands, pilots, engineers on a vessel in navigation. It's not a workers comp program. It's a fault-based remedy. And it only applies to crew members with a real connection to a vessel. USL&H stands for United States Longshore and Harbor Workers' Compensation Act. It's a federal workers comp program for people doing maritime work that isn't on a crew. That includes longshoremen, harbor workers, ship repairers, marina employees, and (often) divers. They get fixed benefits, no lawsuits against the employer. It's close to state workers comp, but maritime-specific. Here's where it gets sideways. Many insurance companies write 'workers comp' policies that include a USL&H endorsement. That's fine. But the certificate of insurance has to say so. If you see 'WC' with no USL&H mention, that policy likely does not apply to a worker two inches on the water side of the pier. And if you see Jones Act on a dock-based contractor, that's simply the wrong law.
What a Correct COI Looks Like
A proper COI for a marine contractor isn't just about the policy type. It's about the declarations. I want to see a workers compensation policy that clearly lists 'United States Longshore and Harbor Workers' Compensation Act' as an endorsement. If the contractor has vessel-based employees, there should also be a Jones Act protection, usually via a maritime employer's liability policy or a dedicated Jones Act endorsement. The carrier might be a big name – AIG, Travelers, Great American – or a specialty marine underwriter like American Club. The phrase 'other states insurance' is not enough. The certificate should also hit the three boxes that every port authority demands: additional insured status for the port authority, waiver of subrogation in favor of the port authority, and 30 days' written notice of cancellation. Not 10 days. Not 20. Thirty days, by certified mail. If those boxes aren't checked, I don't care how pretty the font is.
Why Yours Is Wrong
The most common mistake – I see it weekly – is a COI that only says 'General Liability' and 'Workers Comp' but has no maritime endorsement at all. On a dock, general liability responds to damage to my wharf, not to an injured worker's compensation. And state workers comp policies often exclude maritime workers because the federal government takes jurisdiction. So you end up with two policies that both point at each other, and nobody pays the claim. Second, I see 'Jones Act' used like a magic word. It isn't. If your contractor's crew doesn't operate a vessel in navigation, Jones Act is as useful as a screen door on a submarine. Make sure the coverage matches the work. Third, the additional insured box. Often a contractor will list the port authority as a certificate holder – that's just a notification. It's not coverage. The COI must show 'Additional Insured' and include the endorsement number. Same for waiver of subrogation. Without it, my port's insurer can subrogate against the contractor after a loss, which creates a lovely circle of lawsuits. And here's the digression I promised. I have spent more Friday afternoons chasing expired COIs from diving contractors than I have writing specifications. Diving companies, I love your work, but your insurance broker seems to think renewal dates are optional. The pier won't hold still, and neither does a certificate.
What I Actually Check Before You Set Foot on the Pier
I keep a laminated checklist on my desk. It's beaten up and coffee-stained. Here's what it says. One, the coverage type has to match the work. Pile driving, welding, diving, marine construction – all need USL&H or a specific maritime comp policy. Two, the policy limits have to meet the RFP requirements. For most port jobs, we ask for $5 million in general liability, $1 million per occurrence for property damage, and statutory USL&H limits. I've seen a $1 million general liability from a contractor who wanted to drive piles in an active container terminal. No. Three, the port authority must be named as additional insured on an endorsement, not just as a certificate holder. Four, waiver of subrogation, signed. Five, the certificate has a valid expiration date and a carrier with an AM Best rating of B+ or better. Six, the coverage applies to your subs. If you're a general contractor, your subcontractor's COI needs to name you as additional insured too. Seven, and this is the big one: call the agent. Not to verify the certificate exists – to ask, 'Does the policy include USL&H coverage for a worker on a floating plant?' If the agent hesitates, you have your answer. Your COI is not a piece of paper to send after the bid. It's part of the bid. If it's wrong, I'll throw out the whole package. No exceptions. That's how the port stays insured, and how you stay in business.
Frequently Asked Questions
What is the difference between Jones Act and USL&H? Jones Act covers seamen – crew members on vessels in navigation – and lets them sue employers for negligence. USL&H is a federal workers comp program for harbor workers, longshoremen, and others doing maritime work on shore or in the water. Different workers, different remedies. My contractor has state workers comp. Why do they also need USL&H? State workers comp generally excludes work that's within the jurisdiction of the USL&H. If a worker is injured on a dock or in a marine construction site, the federal act takes over. Without a USL&H endorsement, the worker might have no coverage at all, and the port could be liable as the site owner. Can I accept a certificate of insurance as proof that a contractor is covered? No. A COI is a snapshot of information, not a promise. You need to see the actual policy endorsements – especially the USL&H endorsement and the additional insured and waiver of subrogation forms. I always request a certified copy of the declarations page and the relevant endorsements. What happens if a contractor's COI is wrong and a worker gets hurt? The contractor may have an uninsured claim, the port could face a lawsuit from the worker, and the port's own insurance may not respond because you assumed coverage existed. It's a chain of pain. That's why we verify before work starts.