S. Department of Labor has 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 is designed to represent 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. The Department of Labor aims to protect American workers' safety and health while reducing the burden on job-creating industries and promoting economic growth.
Insurance companies approved by OWCP must provide appropriate security to the department for their liabilities. ' The LHWCA requires private-sector firms to provide workers' compensation coverage for their employees engaged in covered positions. The 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.
The new guidance is scheduled for publication in the Federal Register on February 9, 2026. This change is expected to have a positive impact on the industry, making it more competitive and reducing costs. The Department of Labor's goal is to balance the need to protect workers' rights with the need to support businesses that are critical to the country's economy.
By providing clear guidance, the department aims to promote economic growth while ensuring that injured workers receive fair compensation. The new regulation will also help to improve industry confidence and reduce uncertainty regarding potential liabilities. The Department of Labor is committed to supporting industries that are vital to America's economic and military dominance.
This regulatory relief is a significant step towards achieving this goal. By reducing the cost of insurance, the department hopes to make American-built ships more competitive in the global market. The new guidance will also help to reduce the burden on job-creating industries, promoting economic growth and development.
The Department of Labor's efforts to protect injured workers while supporting businesses are expected to have a positive impact on the industry as a whole. The new regulation is designed to promote fairness and transparency in the industry, reducing uncertainty and improving outcomes for all stakeholders. By providing clear guidance, the department aims to support industries that are critical to the country's economy and promote economic growth.
This regulatory relief is a significant step towards supporting American shipbuilding and promoting economic growth. The Department of Labor's efforts to balance the need to protect workers' rights with the need to support businesses will have a positive impact on the industry.
