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Title 33, Navigation and Navigable WatersRelease 119-102

§932 Security for Compensation

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

Last updated Aug 21, 2026|Official source

Summary

Employers must guarantee payment of benefits under this law either by buying and keeping insurance from a company or fund that is allowed by federal or state law and approved by the Secretary, or by proving they can pay claims themselves and getting the Secretary’s permission to do so. If an employer is allowed to pay directly, the Secretary can require a bond or securities to be held as backup, and can sell those or use the bond to pay if the employer fails to pay. An employer who gets permission to pay directly is called a self-insurer. The Secretary may rely on state officials’ advice when approving insurers, limit an insurer’s area, treat certain marine mutual insurers as eligible, and suspend or cancel approvals after a hearing. Any insurance already in effect stays liable.

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

Aug 21, 2026

Release point: 119-102