What it does
The standard policy's Who Is Insured provision addresses partnerships (a partner is insured only as employer of the partnership's employees) but not joint ventures. WC 00 03 05 (Ed. 4-84) adds the parallel rule: if the employer named in Item 1 is a joint venture and the insured is one of its members, that member is insured, but only in its capacity as an employer of the joint venture's employees.
Who needs it
Joint ventures formed by two or more companies, most often contractors teaming on a large public or private construction project, where the venture itself hires employees and buys its own workers compensation policy. The North Carolina bureau's instruction sheet describes the form simply as the way to insure members of a joint venture named in Item 1.
Key provisions and limits
- Members are covered only for liability as employer of the venture's employees. Each member's own employees remain under that member's separate policy.
- The endorsement does not change limits, premium or classifications.
Quoting and selling notes
- Clarify how the venture will staff the job: employees hired and paid by the venture belong on the venture's policy; employees loaned by a member stay on the member's policy, which may need an alternate employer endorsement (WC 00 03 01) in favor of the venture.
- List the venture under its exact legal name and FEIN in Item 1, and show it as a joint venture entity.
- Experience rating for a new venture and combinability with its members follow the experience rating plan's ownership rules; report the formation under WC 00 04 14.
Related forms
Base policy WC 00 00 00; alternate employer WC 00 03 01; ownership change WC 00 04 14.
