Labor Department Eases Insurance Rules for U.S. Shipbuilders

What Happened?

The U.S. Department of Labor has issued new guidance that eases insurance requirements under the Longshore and Harbor Workers’ Compensation Act (LHWCA) specifically for shipbuilders and other strategically important industries.

The change is set to be published in the Federal Register on February 9, 2026 and introduces a clearer, more structured way for insurers to assess and calculate security requirements for policies covering maritime workers.

Why It Matters?

By easing costly insurance-related financial requirements, the move could help reduce operating costs for U.S. shipyards — important in an industry where domestic yards currently account for a tiny share of global output.

The guidance maintains protections for injured maritime workers while making the cost structure for coverage more predictable and fair for employers and insurers.