Jones Act vs. USL&H: What Marina Contractors Must Carry

If you run a marine construction crew and anyone on that crew works over navigable water — driving piles from a barge, building a dock, running a dredge — the single most important insurance question on your desk is not "do I have workers' comp?" It's "do I have the right maritime coverage for over-water work?" Because for most marine contractors, the honest answer is no.

Standard state workers' compensation does not cover injuries that happen on navigable water. That work falls under two federal statutes instead: the Jones Act and the Longshore and Harbor Workers' Compensation Act (USL&H). Confusing them — or worse, not carrying either — is how marine contractors end up personally liable for a six-figure maritime injury.

The Jones Act covers "seamen"

The Jones Act (officially the Merchant Marine Act of 1920) gives a private right of action to "seamen" — crew members who are assigned to a vessel on navigable waters and who contribute to its function or mission. If you have a deckhand on a tug, a pile-driving operator on a barge, or a crew member whose work regularly puts them on a vessel in navigation, that person is very likely a Jones Act seaman.

A seaman injured on the job does not file a state workers' comp claim. They file a Jones Act claim against their employer for negligence, and the benefit structure is different — and often higher — than state comp. To cover that exposure, you carry Jones Act coverage, sometimes called protection and indemnity (P&I) with Jones Act employers' liability.

USL&H covers the broader over-water workforce

The Longshore and Harbor Workers' Compensation Act (USL&H) is the federal workers' comp system for maritime workers who are not seamen — including dock builders, pier constructors, dredge crews, and marine construction workers whose jobs put them over navigable water but who aren't assigned to a specific vessel.

Many marine contractors have crew that fall under USL&H rather than the Jones Act, and the line isn't always obvious. The key question is whether the worker's duties regularly connect them to a vessel in navigation. If yes, they lean toward Jones Act. If their work is over water but vessel-independent, they lean toward USL&H.

Why state workers' comp isn't enough

Here's the trap that sinks uninsured marine contractors. A state workers' comp policy covers your crew for landside work — the yard, the shop, the staging area. The moment that same crew steps onto a barge or works over navigable water, the state policy stops responding. The claim falls into the federal maritime system — and if you don't carry Jones Act or USL&H coverage, you have no insurance for that claim at all.

The penalties under USL&H for failing to secure coverage are severe: an employer can be liable for double the compensation owed to the injured worker, plus federal fines that can run tens of thousands of dollars per uncovered worker per day. This is not a gap you can absorb.

How the three coverages fit together

Most marine contractors need all three, layered:

• State workers' comp — for crew doing landside work (yard, shop, upland sites).
• Jones Act coverage — for crew classified as seamen working on vessels in navigation.
• USL&H (Longshore) — for the broader over-water marine construction workforce.

The three are coordinated by payroll: your landside payroll goes to state comp, your over-water payroll goes to Jones Act and/or USL&H rated at the maritime class. We help you split that payroll accurately so you're covered everywhere your crew works — with no gaps and no double premium.

"Is my waterway navigable?"

Navigable water is generally any body of water used (or capable of being used) for interstate or foreign commerce. That covers most coastal waters, bays, harbors, major rivers, and the Great Lakes. But the line gets blurry on small tidal creeks, canals, and inland lakes — and getting it wrong is expensive. When in doubt, treat the waterway as navigable and place the maritime coverage. We'll help you assess your operations and confirm where Jones Act and USL&H apply.

Don't find out at claim time

The worst time to learn you're missing Jones Act or USL&H coverage is when a crew member is hurt on a barge and the claim is denied. We review marine contractors' programs all the time and find this gap more often than not — usually placed by a broker who simply didn't know over-water work falls outside state workers' comp.

If you do dock, pier, dredging, or pile-driving work over water, let us review your program. Get a quote or call 844-967-5247, and read more about Jones Act & USL&H coverage and marine general liability.