WASHINGTON, D.C. — On Friday, the U.S. Department of Labor published new guidance aimed at reshaping how insurance requirements are calculated under a key maritime workers’ compensation law, a move officials say will reduce costs for critical industries while keeping protections intact for injured workers.
The notice provides updated, more transparent standards for determining the amount of security insurers must post when writing policies under the Longshore and Harbor Workers’ Compensation Act, which covers private-sector employees working in maritime and harbor-related jobs. The Department said the guidance introduces a structured approach that improves predictability for insurers and employers while continuing to prioritize timely care and compensation for injured workers.
Under the new framework, regulators will weigh factors such as an insurer’s financial strength, experience writing Longshore policies, and track record for promptly paying accepted claims. Labor officials said that clarity is expected to boost industry confidence, reduce uncertainty around liabilities, and lower the cost of doing business for sectors viewed as essential to the nation’s economic and defense interests.
Labor Secretary Lori Chavez-DeRemer said the guidance aligns worker protection with broader economic goals, particularly in maritime and energy industries.
The Longshore Act and its extensions are administered by the Department’s Office of Workers’ Compensation Programs and require covered employers to provide workers’ compensation insurance for qualifying employees. Insurers approved to write those policies must post security with the federal government to back their liabilities. While the law has long allowed for reduced security requirements when insurers meet certain risk and performance standards, the Department said those provisions had never been fully implemented until now.
Officials said the change also supports President Donald J. Trump’s executive order on restoring America’s maritime dominance, by easing regulatory and economic pressures on shipbuilders and related industries and helping U.S.-built vessels compete more effectively with foreign rivals.
The guidance, titled Guidance for Insurance Carrier Security Deposit Requirements, is scheduled for publication in the February 9, 2026, edition of the Federal Register and can be viewed at https://public-inspection.federalregister.gov/2026-02537.pdf.
Labor officials said the update reflects a long-awaited balance between safeguarding injured workers and modernizing regulatory requirements for industries that play a central role in the nation’s infrastructure, trade, and security.
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