1. Forms
2. WC
3. WC-31-03

What the form is

The form code WC 31 03 is a prefix for a series of endorsements specific to New York Workers' Compensation insurance. One of the most significant and commonly referenced forms in this series is the WC 31 03 08 - New York Limit of Liability Endorsement. This endorsement modifies Part Two (Employers Liability Insurance) of the standard Workers' Compensation and Employers' Liability Insurance Policy. Its primary function is to remove the standard dollar limits for employers' liability coverage for bodily injuries to employees when such injuries are compensable under the New York Workers' Compensation Law. This provision applies when New York is designated as a covered state in Item 3.A of the policy's Information Page, effectively providing unlimited employers' liability coverage for qualifying claims.

Classes of business it applies to

The WC 31 03 08 endorsement applies to virtually all employers with operations in New York who are subject to the New York Workers' Compensation Law and have New York listed in Item 3.A of their policy's Information Page. It is not limited to specific industries but is a broad requirement for providing employers' liability coverage in the state.

• Real-world example: A manufacturing company operating in New York has an employee who is injured on the job due to a machine malfunction and collects New York Workers' Compensation benefits. The employee is generally barred from suing the employer directly. However, if the machine manufacturer is sued by the employee and then, in turn, sues the employer for alleged negligence (e.g., improper maintenance or training), the Employers Liability part of the employer's policy would respond. With the WC 31 03 08 endorsement, the coverage for this lawsuit against the employer would be unlimited because the underlying injury was compensable under New York Workers' Compensation Law.

Special considerations

• Mandatory Application: This endorsement must typically be attached to any workers' compensation policy affording New York coverage where New York is listed in Item 3.A of the Information Page.
• Compensability is Key: The unlimited liability provision applies only if the employee's bodily injury is subject to and compensable under the Workers' Compensation Law of New York. If the injury or employment falls outside the scope of New York's workers' compensation law (e.g., certain casual laborers, or an out-of-state employee temporarily in NY whose injury isn't covered by NY WC law), the standard Employers Liability limits shown in Item 3.B of the Information Page would apply.
• Distinction from Part One: Part One (Workers' Compensation Insurance) of the policy covers statutory benefits which automatically conform to the state law. Part Two (Employers Liability Insurance) limits can vary, and this endorsement specifically addresses New York's requirements for unlimited coverage in defined situations.

Key information for agents and underwriters

• Proper State Designation: Agents must ensure New York is correctly listed in Item 3.A of the Information Page for employers whose primary operations or exposures warrant it, which then necessitates the attachment of this endorsement. Misclassifying New York as an "Other State" (Item 3.C) could lead to coverage disputes regarding the applicability of unlimited employers' liability.
• Risk Assessment: For underwriters, this endorsement signifies a potentially unlimited exposure for employers' liability claims in New York that meet the criteria. This is a critical factor in risk assessment and pricing for New York-based businesses or those with significant operations there.
• Coverage Scope: It's vital for both agents and underwriters to understand and communicate to the insured that the "unlimited" aspect is specific to employers' liability claims tied to injuries compensable under NY WC law. It does not make all employers' liability claims unlimited regardless of circumstance.
• Other WC 31 03 Series Endorsements: Be aware that other endorsements under the WC 31 03 prefix address different aspects of New York workers' compensation, such as the New York Construction Classification Premium Adjustment Program (e.g., WC 31 03 19) or deductible programs (e.g., WC 31 03 15 A) . Each serves a distinct purpose and should be reviewed for applicability to the specific insured.