Understanding the Alternate Employer Endorsement in Workers' Compensation
Explore the concept of the Alternate Employer Endorsement (also known as WC 00 03 01 A), which pertains to a dual relationship between a general employer and a special employer in workers' compensation scenarios. Learn about the implications of shared employees, control issues, legal cases, waiver of subrogation, and different approaches to handling employer liability in such situations.
- Workers Compensation
- Employer Relationship
- Alternate Employer Endorsement
- Dual Employment
- Control Issues
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DANGER LURKS THE ALTERNATE EMPLOYER ENDORSEMENT DANGER LURKS-- THE ALTERNATE EMPLOYER ENDORSEMENT -- Presented to: SRMC Nashville, TN Don Malecki, CPCU Malecki Deimling Nielander & Associates Malecki Deimling Nielander & Associates
What is the Alternate Employer Endorsement? AKA - WC 00 03 01 A
Who is the general employer? Who is the special employer? When does the special employer relationship exists?
Dual = General Special Relationship Joint = Serving Two Employers
A general contractor rents a crane with an operator A watercraft owner hires a food catering service to when the craft is touring with passengers A manufacturer owns several companies and it shares employees with their other companies
Implied or Expressed Contract for Hire Work for benefit the special employer Right to control
Most difficult element is control Control cannot be determined until after an injury in most cases
Robert J. Ray and Amelia Ray v. Marcus Thomas, 07- CV-1076 (U.S. Dist. Ct. W.D. Ark. 2009)
Inability of the general employers employee to sue for injuries Waiver of subrogation by WC insurer
Two Approaches: Traditional Way: Hold Harmless Agreement, Waiver of Employer Immunity, Waiver of WC Subrogation and Additional Insured Endorsement Alternate Employer Endorsement
A/K/A WC 00 30 01 A Applicable with WC and EL Policy Produced by the NCCI
Special employer equivalent to a named insured Who Pays Benefits Primary and Noncontributory Basis Closing the Gaps
The schedule of the endorsement must be completed with the name and address of the Alternate Employer, unless the named insured is in the business of providing temporary workers. In that event, the word all or any can be inserted under the endorsement s Schedule
Coverage applies only to the state of temporary or special employment shown Item 3.A. of the WC policy s Information Page.
The named insured of the WC/EL Policy is a contractor who is to perform work for an oil company. The oil company wants to be protected in the event any claims are brought against it by the contractor s employees for work-related injuries.
A property management company is required by the property owner to make it an alternate employer in the event of any claims made against the owner for work-related injuries to the property management company s employees.
A temporary office staffing agency is required by its customer to show it as an alternate employer under the agency s workers compensation and employers liability policy.
Longshore Harborworkers Compensation Act Maritime Endorsement
Not requested Refusal by underwriter Not available
Obtain Hold Harmless Agreement Waiver of Employer Immunity Waiver of WC subrogation Additional Insured Endorsement Contractual liability coverage with no limitation endorsements
The primary purpose of this endorsement is to protect the special employer?
Isnt it true that the contract of hire is between the general and special employer?
Is NCCI to the WC policy what ISO is to the CGL policy?
Is the endorsement applicable for employee leasing firms?
Without an additional premium, is an insurer s refusal to issue the endorsement justified?
Malecki on Insurance ww.maleckioninsurance.com Contact Don Malecki at don.malecki@mdnconsults.com for special offers February and March 2011 issues of Malecki on Insurance features the Alternate Employer Endorsement and other articles.
