1. Forms
  2. WC
  3. WC-42-03-04

What it does

WC 42 03 04 A applies to the policy because Texas is listed in Item 3.A. The insurer keeps its right to recover payments from anyone liable for an injury, but will not enforce it against the person or organization in the Schedule. The waiver applies only to bodily injury arising out of the operations described in the Schedule where the insured is required by a written contract to obtain it, and it does not benefit anyone not named. The Texas manual shows it as the "1st Reprint Effective January 1, 2000."

Key provisions

  • Schedule: a specific waiver naming the party, or a blanket waiver for any person or organization for whom the named insured agreed by written contract to furnish the waiver. The manual notes say a blanket waiver should show "All Texas Operations."
  • Premium: a stated percentage of the premium developed on payroll for work performed for the scheduled parties arising out of the described operations.

How Texas courts read it

In Wausau Underwriters v. Wedel (Tex. 2018) and Exxon Mobil v. Insurance Company of the State of Pennsylvania (Tex. 2019), the Supreme Court of Texas held that the endorsement's "right to recover" covers both subrogation and reimbursement, and that the outside contract is consulted only to decide whether the insured was required to obtain the waiver for the operations where the injury occurred; other limitations in that contract are not read into the endorsement.

Who needs it

Texas contractors, oilfield service companies working under operators' master service agreements, trucking companies and other vendors whose contracts call for a waiver on workers compensation.

Quoting and selling notes

  • Read the contract to see whether it requires a waiver for the owner only or for a group of indemnitees, and choose specific or blanket wording to match.
  • Price the waiver on the payroll for the contract work, not on all payroll, unless the blanket waiver applies to all Texas operations.
  • Because the waiver turns on a written contract requirement, keep copies of the contracts that call for it; they decide whether the waiver applies to a given injury.

Related forms

National waiver WC 00 03 13; California waiver WC 04 03 06.