What the form is
The WC 20 01 01, titled the Massachusetts Terrorism Risk Insurance Program Reauthorization Act Endorsement, was a mandatory endorsement for workers' compensation insurance policies in Massachusetts. Its primary purpose was to ensure compliance with the federal Terrorism Risk Insurance Act (TRIA) and its subsequent reauthorizations. This form notified policyholders how their workers' compensation coverage would respond in the event of a certified act of terrorism, outlined the limitations imposed by TRIA (such as the federal government's share of losses and the program cap), and disclosed any premium charged for terrorism coverage.
Classes of business it applies to
This endorsement applied to virtually all employers in Massachusetts who were required to carry workers' compensation insurance. TRIA itself has a broad application to most commercial lines of insurance. Therefore, any business with employees in Massachusetts, regardless of industry, would have had this endorsement attached to their workers' compensation policy during its effective period. Examples include:
- Manufacturing companies
- Construction contractors
- Retail establishments
- Healthcare facilities
- Educational institutions
- Office-based businesses
Special considerations
A crucial consideration is that the WC 20 01 01 endorsement was withdrawn effective January 1, 2015. This means it is no longer in use for current policies. Insurance carriers in Massachusetts now use updated endorsements to comply with the latest reauthorizations of TRIA. When this form was active, it was vital for ensuring policyholders understood the scope of terrorism coverage under their workers' compensation policy and the role of the federal backstop. The Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA 2007) extended the TRIA program, and this endorsement reflected those provisions for Massachusetts. It's important to note that while this specific state form is withdrawn, TRIA coverage itself remains a component of workers' compensation policies, governed by current federal law and corresponding approved endorsements.
Key information for agents and underwriters
During its period of use, agents and underwriters in Massachusetts were responsible for ensuring the WC 20 01 01 was correctly attached to all workers' compensation policies. Key aspects they needed to understand and communicate included:
- TRIA Disclosure: The form served as a required disclosure to policyholders regarding terrorism coverage.
- Coverage Confirmation: It confirmed that workers' compensation benefits for losses caused by certified acts of terrorism were covered, as mandated by state law and supported by TRIA.
- Program Limitations: Understanding and explaining the federal program's limitations, such as the insurer deductible, the federal share of compensation, and the aggregate industry cap (e.g., $100 billion per program year as mentioned in the 2008 version), was essential.
- Premium Impact: The endorsement supported the insurer's ability to charge a premium for the terrorism risk, which needed to be clearly communicated.
- Superseded Form: For current practice, the most critical piece of information is that this form is obsolete. Agents and underwriters must use the currently approved TRIA-related endorsements for Massachusetts workers' compensation policies. Knowledge of WC 20 01 01 is primarily for historical context or for reviewing policies and claims from the period it was effective (roughly 2008-2014).
An alternative NCCI form, WC 00 04 22A (Terrorism Risk Insurance Program Reauthorization Act Disclosure Endorsement), was also approved for use in Massachusetts as an option for carriers starting October 1, 2008.