As employment models shift and global hiring becomes more complex, the U.S. insurance landscape is evolving to match. If you’re working with an Employer of Record (EOR), you likely expect them to handle key employment risks — but not all EORs offer the same level of coverage. But in today’s evolving employment landscape, standard workers’ comp isn’t always enough — especially for businesses operating in maritime, offshore, or high-risk industries. 

Some EORs in the U.S. are falling behind on newer or industry-specific insurance requirements, exposing companies to unexpected legal and financial risks.  

Here’s a breakdown of the key EOR insurance coverages you should know about, and how to check if your EOR is truly keeping you protected.

Workers’ Compensation Insurance: The core of EOR coverage

Most EORs provide standard Workers’ Compensation Insurance, covering medical costs and lost wages for employees injured on the job. It’s non-negotiable in the U.S. – but coverage gaps can occur if employees operate in high-risk industries or specialized environments and your EOR may not have the correct coverage. 

What you should ask your EOR:
Do you offer multi-state workers’ comp insurance and can you cover higher risk jobs?

USL&H Insurance: For Maritime-Adjacent Workers

U.S. Longshore and Harbor Workers’ Compensation Act (USL&H) is a federal workers’ compensation law that provides benefits to certain maritime workers who are injured or become ill on the job – even if they’re not on a ship. Think dock workers, shipbuilders, or anyone loading cargo near navigable waters. 

This is not automatically included in a general workers’ comp policy and many EORs skip it due to complexity as well as barriers to obtain this coverage. 

What you should ask your EOR:
Do they carry USL&H coverage for eligible employees working near or on U.S. waters?

Marine Employers Liability (MEL): For Offshore and Vessel-Based Work

Marine Employers Liability (MEL) is an insurance policy designed for US-based employers with employees covered under the Jones Act rather than the Longshore and Harbor Workers’ Compensation Act. It covers injury or illness for those classified as crew, who are not protected under traditional workers’ comp or USL&H.  

Ask your EOR:
Does your insurance include MEL coverage for vessel-based workers?

OCSLA Coverage Add-On: For Offshore Oil and Gas Projects

If your employees work on offshore oil rigs or similar platforms beyond U.S. territorial waters, the Outer Continental Shelf Lands Act (OCSLA) may apply. However, this usually requires add-on coverage to either MEL or workers’ comp policies – and not all EORs provide it. 

What you should ask your EOR:
Do they offer OCSLA coverage as an add-on, and how is it structured?

Occupational Accident Insurance (OAI): Optional Protection for Contractors

Occupational Accident Insurance (OAI) is a policy that workers — especially independent contractors – can purchase themselves. It’s not employer-provided, but some EORs may require this policy when onboarding and engaging with independent contractors. 

What you should ask your EOR:
Do they require OAI as a pre-requisite for independent contractors in certain higher risk roles? 

Is your EOR doing enough to protect you and your team? 

Choosing the right EOR is about more than payroll and compliance – it’s about risk mitigation and trust. As employment law continues to evolve, EOR insurance coverage must evolve with it. 

However, it is up to you to ensure that the EOR you work with can cover your specific needs. For example, if your current provider isn’t offering marine liability insurance, but you employ marine workers you may be at risk of falling short on U.S. labor protections. 

Want peace of mind that your workforce is truly protected? Talk to us about full-spectrum EOR coverage, including industry-specific insurances like USL&H, MEL, and OCSLA. We’ll help you navigate compliance with confidence. Get in touch today.