1. Forms
2. WC
3. WC-00-01-04

What the form is

The WC 00 01 04 A, Federal Employers' Liability Act Coverage Endorsement, is an endorsement to the standard Workers Compensation and Employers Liability Insurance Policy. Its primary purpose is to provide employers liability insurance coverage for bodily injury sustained by employees who are subject to the Federal Employers' Liability Act (FELA), 45 U.S.C. Sections 51-60. FELA is a federal law that governs the liability of interstate railroad carriers for job-related injuries to their employees. This endorsement ensures that Part Two (Employers Liability Insurance) of the policy applies to these specific federal exposures, as state workers' compensation laws typically do not apply to such employees. It often modifies or removes certain exclusions in the standard policy, such as Exclusion 9 of Part Two, in relation to work subject to FELA.

Classes of business it applies to

This endorsement is specifically designed for and applies to:

• Interstate railroad carriers: Businesses that operate railroads engaging in interstate commerce. Their employees involved in this commerce are covered under FELA rather than state workers' compensation systems for on-the-job injuries.

Real-world example: A large freight railway company that transports goods across multiple state lines would require this endorsement to cover its liability for injuries to its engineers, conductors, and track maintenance crews who are working on or with trains involved in interstate transport.

Special considerations

• Federal Jurisdiction: Claims under FELA are federal matters and can involve significantly different legal standards and potential damages compared to state workers' compensation claims.
• Exclusivity of FELA: For employees covered by FELA, the Act is generally the exclusive remedy against their employer for workplace injuries; state workers' compensation laws do not apply.
• Policy Language Modification: The endorsement typically states that Part One (Workers Compensation Insurance) does not apply in a state shown in the endorsement's schedule for work subject to FELA. It affirms that Part Two (Employers Liability Insurance) applies to such work.
• Withdrawal of Older Versions: In some jurisdictions, older versions of this endorsement (e.g., WC 00 01 04 with an '04-1984' edition date) may have been withdrawn and replaced by the 'A' version (WC 00 01 04 A).

Real-world example: If a railroad employee is injured due to the railroad's negligence, they would sue under FELA in federal or state court. This endorsement ensures the railroad's Employers Liability coverage responds to such a suit.

Key information for agents and underwriters

• Risk Identification: Agents must accurately identify clients involved in interstate railroad operations to ensure FELA exposures are properly addressed. This includes not just major railroads but potentially smaller rail lines that engage in interstate commerce.
• Underwriting and Pricing: Underwriters need to assess the unique risks associated with railroad operations, which can include catastrophic potential. Pricing for this coverage will reflect the specific hazards and loss history of the railroad.
• Coverage Gaps: Failure to use this endorsement for an insured with FELA exposure could lead to a significant uninsured liability for the railroad. It is crucial to ensure that the policy correctly reflects the federal liability.
• Limits of Liability: The endorsement may modify the Limits of Liability section of Part Two (Employers Liability Insurance). Underwriters should ensure limits are adequate for the potential severity of FELA claims.
• State-Specific Rules: While FELA is a federal act, its interaction with insurance policies can sometimes be subject to state-specific insurance regulations or filings. For example, Texas specifically adopted the WC 00 01 04 A and withdrew the prior WC 00 01 04.