Posted on February 9, 2026
The U.S. Department of Labor has issued new guidance easing insurance requirements for shipbuilding and other strategically important industries, a regulatory shift aimed at lowering costs across America’s maritime industrial base.
The guidance lays out a clearer, more structured framework for how insurers calculate security deposit requirements under the Longshore and Harbor Workers’ Compensation Act (LHWCA). By formalizing how risk is assessed, the department says it is reducing unnecessary financial burdens while preserving protections 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,” Labor Secretary Lori Chavez-DeRemer said. “These guidelines will protect workers while creating a fairer environment for businesses that do vital work for our country.”
Under the new approach, the department will consider multiple factors when determining insurance security requirements, including an insurer’s financial strength, experience writing LHWCA policies, and track record for paying accepted claims promptly. While the LHWCA has long allowed for reduced security under certain conditions, this marks the first time the department has applied a formal risk- and performance-based framework.
The LHWCA and its extensions, administered by the Office of Workers’ Compensation Programs, require private-sector employers to provide workers’ compensation coverage for employees in covered maritime roles. Insurers approved to write those policies must post security with the department to cover potential liabilities.
The move aligns with President Trump’s executive order on “Restoring America’s Maritime Dominance” and is expected to lower insurance costs for U.S. shipyards, improving their ability to compete with foreign builders.
The guidance is scheduled for publication in the February 9, 2026 edition of the Federal Register.
The change comes as the Trump administration is months late rolling out a broader Maritime Action Plan to revive domestic shipbuilding. U.S. yards currently account for roughly 0.2% of global ship production, compared with an estimated 74% in China—an imbalance the administration says justifies a coordinated federal response, including new financing tools and incentives to attract private investment.
