1. Forms
2. WC
3. WC-00-01-09

What the Form Is

The WC 00 01 09 C Outer Continental Shelf Lands Act Coverage Endorsement is an endorsement to the standard Workers Compensation and Employers Liability Insurance Policy. Its primary purpose is to provide workers' compensation and employers' liability insurance coverage for employees subject to the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. Sections 1331 et seq. The OCSLA mandates that the provisions of the federal Longshore and Harbor Workers' Compensation Act (LHWCA) apply to employees engaged in operations on the Outer Continental Shelf. This typically involves work on fixed platforms for the purpose of exploring, developing, removing, or transporting natural resources from the subsoil and seabed of the Outer Continental Shelf. This endorsement modifies the policy by including the OCSLA within the definition of 'Workers' Compensation Law' applicable to the work described.

Classes of Business It Applies To

This endorsement is specifically designed for employers whose employees perform work on fixed structures located on the Outer Continental Shelf, beyond state coastal waters. Key industries include:

• Oil and gas exploration and production companies with offshore operations on fixed platforms.
• Contractors performing services such as drilling, construction, maintenance, or production on these fixed offshore installations.

Real-world example: An energy company employs workers on a stationary oil drilling rig situated 50 miles offshore in the Gulf of Mexico. These workers are involved in extracting oil and natural gas. The WC 00 01 09 C endorsement would be attached to their workers' compensation policy to cover these employees under OCSLA.

Special Considerations

There are several important considerations when using this endorsement:

• Scope Limitation: Coverage under this endorsement applies only to the work specifically described in the Information Page of the policy or in the Schedule of the endorsement as being subject to the Outer Continental Shelf Lands Act. It is crucial that the fixed platforms where work is performed are clearly listed.
• Employers' Liability Modification: Part Two (Employers Liability Insurance) of the standard policy typically contains an exclusion (Exclusion C.8 in many policy versions) for liability related to work subject to federal acts like the LHWCA unless specifically endorsed. This endorsement modifies that by stating that this exclusion does not apply to the work covered under the OCSLA by this endorsement.
• Federal Jurisdiction: Claims under this endorsement fall under federal jurisdiction and provide benefits as stipulated by the LHWCA.
• Distinction from General Maritime Coverage: This endorsement is for employees on fixed structures as defined by OCSLA. It does not typically cover masters or members of the crew of vessels, who may fall under other laws like the Jones Act or require different endorsements such as the Maritime Coverage Endorsement (WC 00 02 01 B) or the Longshore and Harbor Workers' Compensation Act Coverage Endorsement (WC 00 01 06 A) for different types of maritime exposures.

Real-world example: If an insured's employee is injured while working on a listed offshore platform, this endorsement ensures OCSLA (LHWCA) benefits apply. However, if the same insured also has employees working on supply vessels servicing the platform, those vessel employees would likely not be covered by this specific OCSLA endorsement and would require separate maritime coverage considerations.

Key Information for Agents and Underwriters

• Accurate Scheduling: Agents must ensure that all specific fixed platforms and the nature of the work performed on them are meticulously detailed in the policy schedule. Ambiguity can lead to significant coverage gaps or disputes.
• Risk Assessment: Underwriters should conduct a thorough assessment of the OCS operations. This includes evaluating the hazards associated with offshore work, the insured's safety protocols, employee training and experience, and emergency response plans. The risks are generally higher than onshore operations.
• Premium Calculation: Premiums are based on the payroll of employees engaged in OCS work. Specific, often higher-rated, classification codes for offshore activities will apply.
• Contractual Obligations: Insureds are frequently required by their contracts with leaseholders or operators on the OCS (e.g., major oil companies) to carry this specific OCSLA coverage. Agents should review such contracts.
• Jurisdictional Clarity: While OCSLA is federal, ensure the policy also correctly addresses any incidental state act exposures if employees also perform duties within state jurisdictions. This endorsement specifically addresses the federal OCSLA exposure.