Department of Labor says new guidance on LHWCA will help cut costs for maritime
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The U.S. Department of Labor has published new guidance for calculating the amount of securitization required by insurers writing policies under the Longshore and Harbor Workers\u2019 Compensation Act <\/a>(LHWCA). The department says this will lower the cost of doing business for industries that include industries include shipbuilding, resource extraction and defense while continuing to put injured workers first.<\/p>\n Among the factors that are considered are the insurer\u2019s financial health, experience writing LHWCA policies, and how quickly it pays accepted LHWCA claims for injured workers.<\/p>\n \u201cAs we restore America\u2019s maritime and energy dominance, the Department of Labor continues to put American workers\u2019 safety and health first,\u201d said Secretary of Labor Lori Chavez-DeRemer. \u201cThese guidelines will protect workers while creating a fairer environment for businesses that do vital work for our country.\u201d<\/p>\n Administered by the department\u2019s Office of Workers\u2019 Compensation Programs, the LHWCA and its extensions require private-sector firms to provide workers\u2019 compensation coverage for their employees engaged in covered positions. Insurance companies that are approved by OWCP to write policies under the acts must provide appropriate security to the department for their liabilities. While the LHWCA has always allowed companies to reduce their security burden if they meet certain risk- and performance-based criteria, says the department, action has never been taken to provide this relief.<\/p>\n The department says that \u201cin alignment with President Trump\u2019s Executive Order, \u2018Restoring America\u2019s Maritime Dominance<\/a>,\u2019 \u201c the new guidance \u201cwill reduce the economic and regulatory burden on shipbuilders by lowering the cost of insurance and helping American-built ships to better compete with foreign competitors.<\/p>\n The post Department of Labor says new guidance on LHWCA will help cut costs for maritime<\/a> appeared first on Marine Log<\/a>.<\/p>\n<\/div>\n\n