Group coverage by trade

Group Health Insurance for Shipyard and Marine Contractors

Shipyard and marine repair employers carry a liability structure nobody else on this list has to think about. Longshore and Harbor Workers coverage handles work injury on the waterfront, and because it is expensive and comprehensive, owners routinely assume it does more than it does. It does not touch health insurance.

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What actually decides this for shipyard and marine contractors

Longshore coverage is not health insurance and does not replace it

The Longshore and Harbor Workers' Compensation Act covers work-related injury and illness for eligible maritime employment. It does nothing for a cold, a child's asthma, a spouse's surgery or anything off the clock. It is also not minimum essential coverage. Employers conflate the two and their workers find out the hard way.

Marine trades are a genuinely mixed workforce

A yard runs welders, painters, riggers, mechanics, electricians and yard labour, plus an office. That spread of ages and wages on one census produces a blended rate, and it means a single plan design rarely suits everyone - which is the argument for offering two tiers.

Blasting and coating work carries respiratory surveillance

Abrasive blasting and marine coatings bring respirator requirements and, in older vessel work, lead and asbestos exposure. The OSHA-required evaluations sit with the employer, but ongoing care for what they reveal sits with the health plan.

South Florida yards compete with cruise and commercial operators for the same trades

In Miami, Fort Lauderdale and along the river, a good marine welder or systems tech has options with much larger employers who offer full benefits. A small yard without coverage is recruiting against that with one hand tied.

What it costs

Roughly $520 to $780 per employee per month for employee-only coverage before your contribution. Marine trade censuses tend to skew 35 to 55 across the skilled positions. Most yards we work with contribute 55% to 75% of employee-only and add dental, which is well received in a trade with heavy physical demands.

Getting approved: the participation question

Yards frequently have workers covered through a spouse or through prior military service, and VA and TRICARE coverage are valid waivers that leave the participation calculation. Marine trades carry more veteran coverage than most industries, which usually works in the employer's favour on participation.

Not sure where you land? The group eligibility checker works out your real participation number in about a minute, and the cost calculator shows your monthly share and the payroll tax you get back.

Which structure fits

Four routes are open to a business of this size, and the right one depends on your headcount, your W-2 versus contractor mix, and how much you want to spend per head.

Fully insured small group — community rated, predictable, and the usual starting point from two enrolled employees up.
Level funded — often 10–20% below fully insured for a healthy group, with unused claims dollars refundable. Generally worth quoting from about ten enrolled employees.
ICHRA — reimburse individual coverage tax-free. No participation requirement, no contribution cap, and it reaches a workforce a group plan cannot.
QSEHRA — for employers under 50, a fixed tax-free monthly allowance, capped at $6,450 single and $13,100 family for 2026.

Shipyard and Marine Contractors — common questions

Does Longshore Act coverage mean I do not need health insurance?

No. Longshore covers work-related injury and illness for eligible maritime employment only. It does not cover ordinary illness, family members, prescriptions unrelated to a work injury, or anything off duty, and it does not count as minimum essential coverage. They are entirely separate.

Does the hazard of shipyard work raise health premiums?

Not the medical rate. ACA small group medical is community rated on age, ZIP, tier and plan design. Group life and disability underwriting does consider occupation and marine classifications can affect those rates or guaranteed issue limits.

Can a small boatyard with eight employees get a group plan?

Yes. Coverage generally starts at one enrolled W-2 employee besides the owner. Eight employees is a normal small group case.

What about workers who are on the water or travelling to vessels?

A national PPO handles crews who travel to vessels or yards out of the area. For a yard whose people are on site daily, a regional network is usually adequate and less expensive.

Do we need to cover subcontracted trades working in our yard?

No. Subcontractors are not your employees, are not eligible for your plan, and do not count toward participation or toward the 50-employee applicable large employer calculation.

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