Endorsements used to alter a few of the exclusions specific to employers’ liability coverage were listed in the last post. These endorsements are detailed below. Each alters to some extent both the workers’ compensation (Part One) and employers’ liability (Part Two) sections. A description of each endorsement, including the intent and eligibility factors, will be presented, with each then being charted showing the applicable endorsement’s effect on the workers’ compensation coverage and/or the employers’ liability protection.
Longshoremen’s and Harbor Workers’ Compensation Act Coverage Endorsement (WC 00 01 06A): Classifying a worker as a longshoreman or harbor worker requires the application of two specific tests: the “situs” and “status” tests. USL&HW benefits are extended to employees that meet both requirements:
• Situs requires that the employment be on, above or below navigable waters and adjoining areas. But working around or over water does not in itself qualify an individual for the benefits prescribed by USL&HW Act law. To qualify for such coverage requires satisfying the “status” test.
• Status as a longshoreman or harbor worker requires that the employment involve the loading and unloading of ships; or the maintenance, repair or dismantling of ships.
Unless both tests are satisfied, the employee is not a longshoreman or a harbor worker and is not eligible for the applicable benefits. An individual or group of employees working on a bridge above navigable waters do not necessarily qualify for nor require USL&HW protection. While they are working above navigable water, the employees do not meet the status test as they are not working with ships or water-going vessels.
Each state prescribes the benefits provided and must be listed for coverage to apply as for any other employee. USL&HW coverage does not apply to masters or crew members of vessels.
Nonappropriated Fund Instrumentalities Act Coverage Endorsement (WC 00 01 08A): Civilians working on US-based military bases are covered by this endorsement. This includes non-military personnel working in exchange stores, movie theaters and other such operations. This endorsement extends the same benefits prescribed under the USL&HW Act to these employees.
Defense Base Act Coverage Endorsement (WC 00 01 01A): The defense base act is like the nonappropriated funds instrumentality act in that it extends USL&HW benefits to cover civilian employees working on military bases; however there are some important differences.
• The defense base act covers civilian employees working in any capacity on military bases outside the continental United States. This extends to include Alaska and Hawaii;
• Covered operations include civilian employees of contractors or subcontractors engaged in public works projects with any US governmental agency outside the continental US (i.e. Iraq and Afghanistan);
• Includes civilian employees working on contracts approved and funded under the Foreign Assistance Act outside the continental US;
• Coverage extends to employees working for US employers providing welfare of similar services to members of the armed forces outside the continental US. This includes such operations as the USO and Red Cross; and
• Coverage under the defense base act applies to all civilian employees, not just US citizens.
To trigger coverage, the endorsement must contain a description of the work and the location of the work.
Outer Continental Shelf Lands Act Coverage Endorsement (WC 00 01 09A): “Outer continental shelf” are submerged lands that lie seaward of various states subject to US jurisdiction. USL&HW benefits are extended by describing the work and the endorsement must indicate in which state the location would be if the territorial boundaries extended to the outer continental shelf. This endorsement generally applies to employees engaged in the development, exploration or removal of natural resources (oil and gas) from the sea floor by use of a fixed platform.
Federal Coal Mine Health and Safety Act Coverage Endorsement (WC 00 01 02): Federal Black Lung workers’ compensation benefits are provided in the states listed in this endorsement, even in monopolistic states, in support of the Federal Coal Mine Health and Safety Act. Benefits are specified by Federal law.
Federal Employers’ Liability Act Coverage Endorsement (WC 00 01 04A): The oldest continuous operating workers’ compensation act signed into law by President Taft in 1908 (See: “Workers’ Compensation History: The Great Tradeoff!”). Coverage is for railroad employees engaged in interstate commerce.
Maritime Coverage Endorsement (WC 00 02 01A): This endorsement is used to extend workers’ compensation coverage to employers required to provide maritime benefits under Admiralty Law, DHSA or the Jones Act to their employees but who do not have a Protection and Indemnity(P&I) policy or the P&I does not cover their entire operations. Coverage is triggered by describing the maritime operations that are to be insured by the endorsement which may include: limitations by size, ownership or name of the vessel; or limited by the names of waterways that will be used by the vessel.
Voluntary Compensation Maritime Coverage Endorsement (WC 00 02 03): This is like the Maritime Coverage Endorsement, however it is used only when workers’ compensation and employers’ liability coverage is not required as there are less than the minimum number of employees. Same as the voluntary compensation endorsement used for non-maritime employees. The endorsement extends workers’ compensation and employers’ liability protection. Employees are covered by naming or describing the vessel to which they are assigned.
Click here to see the chart of these endorsements and which part each addresses and changes.