If I am a sole proprietor, exempt from state workers compensation, do I need to purchase Longshore coverage? YES! While many states exclude sole proprietors and partners from the definition of "employee" but provide a mechanism for these employers to elect to be included in the definition of "employee" by filing a notice. But a person cannot be both employer and employee under the "Longshore Act". (Duncan v D & K Foreign Auto Repair, 17 BRBS 40 (1985), McMaster v Robert Miller & Associates, 21 BRBS 252). Once you enter a yard, marina or similar facility you are considered an employee.

What's my responsibility for subcontractors? Total resposibility! Florida and many states say that you are not responsible for uninsured subcontractors if they are truly independent, however, the Longshore Act makes you totally responsible for any uninsured subcontractors without regard to any "independent" status.

How can I afford to buy the coverage? Can you afford not to? The penalties are severe for not having coverage. First, if you have a Florida State Act only policy (NO Longshore endorsement) carriers are legitimately denying Longshore claims, and a recent court case has upheld this position. That means you would have to pay ALL of a Longshore claim (not just the difference), which is typically double the same claim under the state act. Further an unpaid claim is the personal responsibility of the President, Secretary and Treasurer of a corporation so any corporate veil disappears, and the Federal department of labor has the power to fine, or even put you in jail, if you do not have valid Longshore coverage.