1. Forms
2. WC
3. WC-00-03-13

Form WC 00 03 13: Partners, Officers And Others Exclusion Endorsement

1. What the form is

The Partners, Officers And Others Exclusion Endorsement, form WC 00 03 13, is designed for use with the standard Workers Compensation and Employers Liability Insurance Policy (WC 00 00 00). Its primary purpose is to exclude specific individuals—such as partners in a partnership, executive officers of a corporation, or other specified individuals—from the workers' compensation and employers' liability coverage provided by the policy. This exclusion is contingent upon the laws of the state(s) where coverage applies, as some states mandate coverage for certain individuals regardless of their preference, while others permit such exclusions under specific conditions. When this endorsement is attached, the individuals named or described in its schedule are no longer eligible for workers' compensation benefits under that policy for work-related injuries or illnesses. This is often elected by individuals who may have other forms of insurance (e.g., health, disability, life) and wish to reduce the business's workers' compensation premium.

2. Classes of business it applies to

This endorsement is typically utilized by specific types of businesses where owners or key personnel may legally opt out of workers' compensation coverage. Common scenarios include:

• Closely-held corporations: Small businesses or family-owned corporations where the executive officers are also the primary owners and may prefer to rely on other personal or business-provided insurance benefits.
• Partnerships: In states where partners are not automatically covered or are permitted to exclude themselves, this endorsement formalizes that exclusion.
• Professional Corporations: Firms such as medical practices, law firms, or accounting firms where the principals are officers or partners.
• Real-world example: A small IT consulting firm, structured as an S-Corporation with two officer-shareholders, might use this endorsement to exclude both officers from workers' compensation coverage in a state that allows such exclusions. This decision could be made if they have robust individual health and disability income policies and wish to lower their operational costs.
• Real-world example: A group of architects operating as a Limited Liability Partnership (LLP) in a state that permits partners to reject workers' compensation coverage might attach this endorsement to their policy, naming the partners who elect to be excluded.

3. Special considerations

Several important factors must be considered when using this endorsement:

• State Law Prevails: The permissibility of excluding partners, officers, or others is strictly governed by individual state workers' compensation statutes and regulations. What is allowed in one state may be prohibited in another, or subject to different criteria (e.g., percentage of ownership, number of employees, type of business).
• Formal Election Required: Most states that permit these exclusions require the individual being excluded to make a formal,