---
kind: "section"
citation: "33 U.S.C. § 932"
title: "33"
title_heading: "Navigation and Navigable Waters"
number: "932"
heading: "Security for compensation"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/33/932"
units:
  - "Chapter 18 — Longshore and Harbor Workers’ Compensation"
---

# §932. Security for compensation

- (a) Every [employer](/usc/33/902.md?p=4) shall secure the payment of [compensation](/usc/33/902.md?p=12) under this chapter—
  - (1) By insuring and keeping insured the payment of such [compensation](/usc/33/902.md?p=12) with any stock company or mutual company or association, or with any other [person](/usc/33/902.md?p=1) or fund, while such [person](/usc/33/902.md?p=1) or fund is authorized (A) under the laws of the [United States](/usc/33/902.md?p=9) or of any [State](/usc/33/902.md?p=8), to insure workmen’s [compensation](/usc/33/902.md?p=12), and (B) by the [Secretary](/usc/33/902.md?p=6), to insure payment of [compensation](/usc/33/902.md?p=12) under this chapter; or
  - (2) By furnishing satisfactory proof to the [Secretary](/usc/33/902.md?p=6) of his financial ability to pay such [compensation](/usc/33/902.md?p=12) and receiving an authorization from the [Secretary](/usc/33/902.md?p=6) to pay such [compensation](/usc/33/902.md?p=12) directly. The [Secretary](/usc/33/902.md?p=6) may, as a condition to such authorization, require such [employer](/usc/33/902.md?p=4) to deposit in a depository designated by the [Secretary](/usc/33/902.md?p=6) either an indemnity bond or securities (at the option of the [employer](/usc/33/902.md?p=4)) of a kind and in an amount determined by the [Secretary](/usc/33/902.md?p=6), based on the [employer](/usc/33/902.md?p=4)’s financial condition, the [employer](/usc/33/902.md?p=4)’s previous record of payments, and other relevant factors, and subject to such conditions as the [Secretary](/usc/33/902.md?p=6) may prescribe, which shall include authorization to the [Secretary](/usc/33/902.md?p=6) in case of default to sell any such securities sufficient to pay [compensation](/usc/33/902.md?p=12) awards or to bring suit upon such bonds, to procure prompt payment of [compensation](/usc/33/902.md?p=12) under this chapter. Any [employer](/usc/33/902.md?p=4) securing [compensation](/usc/33/902.md?p=12) in accordance with the provisions of this paragraph shall be known as a self-insurer.
- (b) In granting authorization to any [carrier](/usc/33/902.md?p=5) to insure payment of [compensation](/usc/33/902.md?p=12) under this chapter the [Secretary](/usc/33/902.md?p=6) may take into consideration the recommendation of any [State](/usc/33/902.md?p=8) authority having supervision over [carriers](/usc/33/902.md?p=5) or over workmen’s [compensation](/usc/33/902.md?p=12), and may authorize any [carrier](/usc/33/902.md?p=5) to insure the payment of [compensation](/usc/33/902.md?p=12) 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](/usc/33/902.md?p=2) and death, and for other losses and damages, incidental to or in respect of the ownership, operation, or chartering of [vessels](/usc/33/902.md?p=21) on a mutual assessment plan, shall be deemed a qualified [carrier](/usc/33/902.md?p=5) to insure [compensation](/usc/33/902.md?p=12) under this chapter. The [Secretary](/usc/33/902.md?p=6) may suspend or revoke any such authorization for good cause shown after a hearing at which the [carrier](/usc/33/902.md?p=5) shall be entitled to be heard in [person](/usc/33/902.md?p=1) or by counsel and to present evidence. No suspension or revocation shall affect the liability of any [carrier](/usc/33/902.md?p=5) already incurred.

## Source credit

(Mar. 4, 1927, ch. 509, § 32, 44 Stat. 1439; Pub. L. 98–426, §§ 20, 27(a)(2), Sept. 28, 1984, 98 Stat. 1652, 1654.)

## Notes

### 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 Amendment

Amendment 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.