Workers’ compensation coverage is straightforward, but navigating the laws and specific employment situations can be challenging. Agents must be well-versed in state and federal regulations, as well as non-traditional employment arrangements. In this article, we will explore three essential endorsements that every agent should understand and know when to use.
Longshore and Harbor Workers’ Compensation Act Coverage Endorsement (WC 00 01 06 A)
Attach this endorsement when the insured is an employer in the maritime industry, employing workers eligible for the Longshore and Harbor Workers’ Compensation Act. While this is a federal law, the benefits provided are determined by each state. Therefore, the applicable state must be listed for coverage to apply. According to the act, eligible employers are those who have employees engaged in maritime employment on or near the navigable waters of the United States. Eligible employees include those involved in maritime work, such as longshoremen, harbor workers, ship repairmen, shipbuilders, and ship-breakers. However, there are exclusions to the definition of “employee” under this law.
Alternate Employer Endorsement (WC 00 03 01 A)
Determining the employer-employee relationship can be complex. This endorsement addresses the “borrowed servant doctrine” and clarifies who is considered the employer at the time of an injury. It is crucial to establish which workers’ compensation policy provides coverage. Four types of employee-employer relationships exist: direct relationships, de facto relationships, de jure relationships, and special (borrowed servant) relationships. In a borrowed servant relationship, control is the key factor. If the direct employer has directed the employee to work for another party, the work being done is essentially that of the special employer, and the special employer has the right to control the details of the work, then the special employer is responsible for providing workers’ compensation protection.
Voluntary Compensation and Employers’ Liability Coverage Endorsement (WC 00 03 11 A)
Contrary to what the name suggests, this endorsement does not provide coverage for volunteers. It is attached when employers voluntarily offer workers’ compensation protection even when not required by law. Certain states have a threshold number of employees before workers’ compensation coverage is mandatory. However, employers in these states may choose to provide coverage even if they have not reached the threshold. This endorsement ensures that the carrier cannot deny coverage based on the non-mandatory status. It also allows for the extension of coverage to individuals or classes of individuals not required to be protected by workers’ compensation coverage.
Understanding workers’ compensation and its complexities is essential for insurance agents. By familiarizing themselves with crucial endorsements like the Longshore and Harbor Workers’ Compensation Act Coverage Endorsement, the Alternate Employer Endorsement, and the Voluntary Compensation and Employers’ Liability Coverage Endorsement, agents can navigate the intricacies of workers’ compensation and effectively serve their clients.
- Boggs, C. (2017, April 20). BoggsThreeEndorsements. Retrieved from source
Note: This article was written based on Boggs’ original work, “BoggsThreeEndorsements.”