DOL Guidance on Longshore and Harbor Workers' Compensation Act Security Deposits

DOL News Releases

Published February 6th, 2026

Detected February 11th, 2026

Summary

The U.S. Department of Labor has published new guidance to provide enhanced and transparent criteria for calculating securitization requirements for insurers writing policies under the Longshore and Harbor Workers' Compensation Act. This guidance aims to lower costs for vital industries while ensuring worker safety.

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What changed

The U.S. Department of Labor, through its Office of Workers’ Compensation Programs, has issued new guidance detailing transparent criteria for calculating the securitization required from insurers writing policies under the Longshore and Harbor Workers' Compensation Act (LHWCA). This guidance, aligned with an executive order on maritime dominance, aims to reduce economic and regulatory burdens on industries such as shipbuilding and resource extraction by potentially lowering insurance costs, thereby improving industry confidence and competitiveness, while continuing to prioritize injured worker safety.

Companies and insurers operating under the LHWCA should review the new guidance to understand how financial health, claims-paying speed, and experience with LHWCA policies can affect security deposit requirements. While the guidance itself is effective upon publication, regulated entities should assess their current security arrangements and consider how to leverage these new criteria to potentially reduce their liabilities. The document is scheduled for publication in the Federal Register on February 9, 2026.

What to do next

Review the new guidance on LHWCA insurance securitization requirements.
Assess current security deposit arrangements based on the updated criteria.
Consult with legal and compliance teams regarding potential adjustments to insurance policies and security.

Source document (simplified)

News Release

US Department of Labor provides regulatory relief for companies, insurers in vital industries

Affected industries include shipbuilding, resource extraction, defense WASHINGTON – The U.S. Department of Labor today 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.

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. It will also improve industry confidence regarding potential liabilities and how to improve their outcomes. Among the factors that are considered are the company’s financial health, experience writing LHWCA policies, and how quickly they pay accepted claims for injured workers.

“As we restore America’s maritime and energy dominance, the Department of Labor continues to put American workers’ safety and health first,” said Secretary of Labor Lori Chavez-DeRemer. “These guidelines will protect workers while creating a fairer environment for businesses that do vital work for our country.”

Publishing this guidance advances the department’s goal of protecting injured workers while reducing the burden on job-creating industries and promoting economic growth.

Administered by the department’s Office of Workers’ Compensation Programs, the LHWCA and its extensions require private-sector firms to provide workers’ 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, action has never been taken to provide this relief.

In alignment with President Trump’s Executive Order, “ Restoring America’s Maritime Dominance,” this action will 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.

Read the Guidance for Insurance Carrier Security Deposit Requirements, which is scheduled for publication in the Feb. 9, 2026, edition of the Federal Register.

Learn more about the Office of Workers' Compensation Programs.

Agency Office of Workers' Compensation Programs Date February 6, 2026 Release Number 26-122-NAT Media Contact: Lorynn Holloway Phone Number (202) 693-4652 Email holloway.lorynn.n@dol.gov Media Contact: Kristen Knebel Phone Number 202-693-3435 Email knebel.kristen.cr@dol.gov Share This
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