LONGSHOREreform 2009

This site is sponsored by LIG Marine Managers, Inc.  www.LIGMarine.com

FREQUENTLY ASKED QUESTIONS

 

 

Who does this change affect?

 

The LONGSHORE Matrix shows the current exception.  The box highlighted in

yellow is the only one that changed as part of the reform passed.

 

 

 

How will this affect my current LONGSHORE premiums?

 

This will vary by state, but in Florida, for example, it will result in a reduction

of the current LONGSHORE premium by approximately 55% for those people

affected by this change for the period from February 17, 2009 to your natural

policy expiration.

 

 

 

How do I get this reduction now?

 

Different carriers and agents will have different methods, but for LIG, simply complete the LONGSHORE Reform Worksheet and send it via your agent at LIG.  We will then process the return which will be used to reduce or

eliminate future payments under the policy.

 

 

 

How do officer exemptions effect this change?

 

If officers who do any marine work on ANY vessel of any size attempt to use the officer exemption under various state act law, then they lose the exclusion under LONGSHORE and are then required to carry LONGSHORE

Coverage.  Revoke those exemptions in order to protect the LONGSHORE exclusion for recreational boat repair.

 

 

 

What about officers who do EXCLUSIVELY Clerical or Sales Work?

 

They can use normal state act exclusions and filings.

 

 

 

How do I revoke an officer exclusion?

 

Download and complete the revocation form for your state.  For Florida it’s a DWC-250-R.  File this with the state AND send a copy to your insurance agent to ask them to have the officer ADDED back to the policy.  You may be asked to sign a NO LOSS LETTER by certain carriers for that officer.

 

 

 

Do I still need LONGSHORE coverage?

 

We recommend that you do. Please see No Longshore?

 

 

 

What about people signed on as “crew”?

 

True crew should be covered under the vessels P&I insurance, but case law holds that a crewman must spend at least 30% of their time in service of a particular vessel or identifiable fleet of vessels, so someone signed on for a week or two to perform repair/maintenance work will never escape the need to buy the proper Longshore or State coverage for them.

 

 

 

What constitutes Manufacturing/Building?

 

This change in the act is so new there are no definitive answers here, however the best opinions we could find tell us that the function goes with the vessel.  In other words, if the vessel is a new build or conversion, then all work for that vessel is considered manufacturing/building.  Conversely, if the vessel is being repaired, all work on the vessel is considered repair, even if it includes fabricating some parts or components.

 

 

 

Is a Sole Proprietor Exempt for Longshore?

While in theory a Sole Proprietor is exempt from Longshore, they are no longer considered a Sole Proprietor “as soon as they work at the direction of another”.  This means that the Sole Proprietor has the same coverage issues as all other businesses when working in or for a yard.