1. Forms
2. WC
3. WC-00-02

What the Form Is

The form code WC 00 02 refers to a series of endorsements designed for the standard Workers' Compensation and Employers Liability Insurance Policy (e.g., WC 00 00 00 C). The most prominent among these is the WC 00 02 01 B Maritime Coverage Endorsement.

This endorsement specifically modifies Part Two (Employers Liability Insurance) of the policy. Its primary function is to alter the standard exclusion (often Exclusion 10) that pertains to bodily injury sustained by a "master or member of the crew of any vessel". The endorsement redefines how Employers Liability insurance applies to these employees when they are injured in the course of their maritime employment, under specified conditions and territorial limits.

Classes of Business It Applies To

This endorsement is crucial for businesses that employ individuals working as masters or crew members aboard vessels. Real-world examples include:

• Commercial fishing operations
• Tugboat and barge companies
• Ferry services
• Charter boat and tour boat operators
• Other marine enterprises where employees' duties involve working on vessels and who may not be covered, or whose coverage status is ambiguous, under federal maritime laws like the Jones Act or the Longshore and Harbor Workers' Compensation Act (USL&H) for all situations.

Special Considerations

It's important to understand the context of maritime law when using this endorsement:

• Standard workers' compensation policies often exclude masters and crew members because their remedies for injury are typically governed by federal maritime laws (e.g., Jones Act, General Maritime Law) rather than state workers' compensation acts. This endorsement addresses the Employers Liability aspect for such crew members.
• Distinction from Federal Acts: This endorsement provides Employers Liability coverage and should not be confused with Jones Act coverage (which allows seamen to sue employers for negligence) or USL&H benefits (a federal workers' compensation system for certain other maritime workers).
• Protection and Indemnity (P&I) Insurance: Many vessel operators carry P&I insurance, which often covers liability for crew injuries. The WC 00 02 01 B endorsement may include provisions stating it does not cover bodily injury already covered by a P&I policy issued to the insured.
• Voluntary Compensation: The related WC 00 02 03 Voluntary Compensation Maritime Coverage Endorsement can be used, often with WC 00 02 01, to offer workers' compensation-like benefits to crew members on a voluntary basis, typically referencing a specific state's workers' compensation law for benefit levels. This is for situations where coverage isn't legally mandated but the employer chooses to provide it.
• Territorial Limits: The endorsement usually specifies geographical limits for coverage, such as the waters of the continental United States, Alaska, Hawaii, and Canada.

Key Information for Agents and Underwriters

• Risk Assessment: A thorough understanding of the insured's maritime operations is essential. This includes the types of vessels, areas of operation, crew duties, and any existing marine insurance policies (like P&I).
• Coverage Gaps: Agents should identify potential gaps between state workers' compensation, federal maritime remedies, and the employer's liability. The WC 00 02 series aims to fill specific Employers Liability gaps for crew members.
• Proper Form Usage: Ensure WC 00 02 01 B is appropriate for the exposure. If the intent is to provide voluntary, no-fault benefits similar to workers' compensation, WC 00 02 03 should also be considered. For more limited exposures, such as tradespeople or caterers incidentally on a vessel, the WC 00 02 04 Limited Maritime Coverage Endorsement might be more suitable.
• Underwriting: Maritime risks can be complex and carry higher potential severity. Underwriters must carefully evaluate the specific hazards, safety practices, and loss history. The definition of "bodily injury by disease" and its presumed location (often the vessel's home port state) are key underwriting details.
• Policy Structure: This endorsement modifies Part Two of the WC policy; it does not create a standalone maritime policy.