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Title 33 — Navigation and Navigable WatersRelease 119-73not60

§932 Security for Compensation

Title 33 › Chapter 18— LONGSHORE AND HARBOR WORKERS’ COMPENSATION › § 932

Last updated Apr 5, 2026|Official source

Summary

Employers must make sure workers get the payments required by this law. They can do that by buying and keeping insurance from an insurer the Secretary approves, or by proving they can pay and getting permission to pay workers themselves. If allowed to pay directly, the Secretary can require the employer to put up a bond or securities in a government deposit place. The Secretary will set the type and amount of those deposits based on the employer’s finances and past record. Employers who pay directly are called self-insurers. The Secretary can listen to state officials when approving insurers. The Secretary can limit where an insurer may cover claims. Certain marine mutual insurance clubs that meet state rules count as approved insurers. The Secretary may suspend or cancel an insurer’s approval for good cause after a hearing where the insurer can speak or bring a lawyer. Any already-created insurer liability stays in effect.

Full Legal Text

Title 33, §932

Navigation and Navigable Waters — Source: USLM XML via OLRC

(a)Every employer shall secure the payment of compensation under this chapter—
(1)By insuring and keeping insured the payment of such compensation with any stock company or mutual company or association, or with any other person or fund, while such person or fund is authorized (A) under the laws of the United States or of any State, to insure workmen’s compensation, and (B) by the Secretary, to insure payment of compensation under this chapter; or
(2)By furnishing satisfactory proof to the Secretary of his financial ability to pay such compensation and receiving an authorization from the Secretary to pay such compensation directly. The Secretary may, as a condition to such authorization, require such employer to deposit in a depository designated by the Secretary either an indemnity bond or securities (at the option of the employer) of a kind and in an amount determined by the Secretary, based on the employer’s financial condition, the employer’s previous record of payments, and other relevant factors, and subject to such conditions as the Secretary may prescribe, which shall include authorization to the Secretary in case of default to sell any such securities sufficient to pay compensation awards or to bring suit upon such bonds, to procure prompt payment of compensation under this chapter. Any employer securing compensation in accordance with the provisions of this paragraph shall be known as a self-insurer.
(b)In granting authorization to any carrier to insure payment of compensation under this chapter the Secretary may take into consideration the recommendation of any State authority having supervision over carriers or over workmen’s compensation, and may authorize any carrier to insure the payment of compensation under this chapter in a limited territory. Any marine protection and indemnity mutual insurance corporation or association, authorized to write insurance against liability for loss or damage from personal injury and death, and for other losses and damages, incidental to or in respect of the ownership, operation, or chartering of vessels on a mutual assessment plan, shall be deemed a qualified carrier to insure compensation under this chapter. The Secretary may suspend or revoke any such authorization for good cause shown after a hearing at which the carrier shall be entitled to be heard in person or by counsel and to present evidence. No suspension or revocation shall affect the liability of any carrier already incurred.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1984—Subsec. (a)(1). Pub. L. 98–426, § 27(a)(2), substituted “Secretary” for “commission”. See

Transfer of Functions

note set out under section 902 of this title. Subsec. (a)(2). Pub. L. 98–426, § 20, inserted “based on the employer’s financial condition, the employer’s previous record of payments, and other relevant factors,” after “in an amount determined by the commission,”. Pub. L. 98–426, § 27(a)(2), substituted “Secretary” for “commission”. See

Transfer of Functions

note set out under section 902 of this title. Subsec. (b). Pub. L. 98–426, § 27(a)(2), substituted “Secretary” for “commission”. See

Transfer of Functions

note set out under section 902 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

of 1984 AmendmentAmendment by Pub. L. 98–426 effective Sept. 28, 1984, see section 28(e)(1) of Pub. L. 98–426, set out as a note under section 901 of this title.

Reference

Citations & Metadata

Citation

33 U.S.C. § 932

Title 33 — Navigation and Navigable Waters

Last Updated

Apr 5, 2026

Release point: 119-73not60