Voluntary Compensation Coverage- Is It Really Necessary?
You bet it is!
Certain employees may be exempt or excluded from state workers’ compensation laws. Examples of employees that may not be covered in a given state include:
- Domestic employees
- Agricultural employees
- Employees injured while temporarily outside the U.S. or Canada
- Employees injured while on indefinite assignment outside the U.S. or Canada (a foreign voluntary workers’ compensation policy or foreign voluntary workers’ compensation endorsement is generally preferable)
But those exempt or excluded employees can still sue you, their employer, for damages if they’re hurt on the job resulting from your negligence. It’s even possible for those individuals to recover amounts in excess of the state workers’ compensation benefits. For this reason, employers should consider voluntarily providing workers’ compensation and employers liability to those employees.
There are two endorsements available to cover these employees:
- Voluntary compensation and employers liability coverage endorsement WC 00 03 11 A
- Voluntary compensation and employers liability coverage for residence employees endorsement WC 00 03 12 A (added to homeowners, farmowners, ranchowners or personal liability policies)
The endorsement must contain a schedule that lists the employees covered. Therefore, it’s suggested the schedule be completed with very broad wording, such as “all employees not subject to the workers’ compensation or occupational disease law of any state.”
If you don’t currently have this important coverage, please consider adding it to your workers’ compensation policy or contacting a member of the ‘A’ Team for more information.
- Am I Covered? The One Question You’ll Never Have to Ask Again
- Workers’ Compensation E-Book
- Workers’ Compensation Videos
- Out-of-State Workers’ Compensation Guide
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