Washington, D.C. — The U.S. Department of Labor on Friday published a notice providing enhanced and transparent guidance for calculating the amount of securitization required by insurers writing policies under the Longshore and Harbor Workers’ Compensation Act.
Department officials said the new guidance establishes a more structured and predictable approach that is expected to lower the cost of doing business for industries critical to the nation’s economic and military strength, while continuing to prioritize injured workers. The guidance outlines factors used to determine required security deposits, including an insurer’s financial health, experience writing Longshore Act policies, and the speed with which accepted claims are paid.
“This new guidance represents a transparent and structured approach that will lower the cost of doing business for industries vital to America’s economic and military dominance while continuing to put injured workers first,” the department said in a statement.
U.S. Secretary of Labor Lori Chavez-DeRemer said the changes strike a balance between worker protections and economic growth.
“As we restore America’s maritime and energy dominance, the Department of Labor continues to put American workers’ safety and health first,” Chavez-DeRemer said. “These guidelines will protect workers while creating a fairer environment for businesses that do vital work for our country.”
The Longshore Act and its extensions are administered by the department’s Office of Workers’ Compensation Programs and require private-sector employers to provide workers’ compensation coverage for employees in covered maritime and related positions. Insurance carriers approved to write policies under the act must provide financial security to cover potential liabilities.
Although the law has long allowed insurers to reduce their security burden based on risk and performance criteria, the department said this authority had never been formally implemented until now.
The action aligns with Donald Trump’s executive order, “Restoring America’s Maritime Dominance,” and is intended to reduce regulatory and economic burdens on shipbuilders by lowering insurance costs and improving the competitiveness of American-built ships.
The guidance, titled Guidance for Insurance Carrier Security Deposit Requirements, is scheduled for publication in the February 9, 2026, edition of the Federal Register.
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