Division of Longshore and Harbor Workers' Compensation Guidance for Insurance Carrier Security Deposit Requirements

What it does

The Office of Workers' Compensation Program is issuing this guidance to clarify the securitization requirements for insurance carriers authorized under the Longshore and Harbor Workers' Compensation Act (LHWCA) and its extensions. This guidance establishes a rubric which allows OWCP to adjust the insurance carriers' obligations based on their fiscal stability and performance within the Longshore industry and serves to establish a clear and standardized process for determining the amount of collateral an authorized insurance carrier must deposit to cover its potential liabilities. This clarification benefits insurance carriers by providing predictability which aids in capital planning and avoids arbitrary or unexpected security adjustments. This also helps to standardize compliance across the industry and ensures authorized carriers secure their critical obligations. This sub-regulatory guidance does not supersede existing regulations and is intended to provide insurance carriers (carriers) with clarification on the posting of security deposits to collateralize liabilities.

The Workers' Compensation Programs Office's summary, as published in the Federal Register.

What it would change

1 part of Title 20 of the Code of Federal Regulations:

20 CFR 703

What happens next and when

February 9, 2026.

The agency's dates, word for word.

Check it yourself

• The document in the Federal Register
• Title 20 on eCFR

The record as published

Source: the Federal Register (public domain). The document in the Federal Register