1. Forms
2. WC
3. WC-00-02-04

What the form is

The WC 00 02 04 Limited Maritime Coverage Endorsement is an advisory NCCI (National Council on Compensation Insurance) form designed to amend the standard Workers Compensation and Employers Liability Insurance Policy. Specifically, it alters Part Two – Employers Liability Insurance. The standard policy, under Part Two, Section C, Exclusion 10, typically excludes coverage for bodily injury sustained by the master or members of the crew of any vessel. This endorsement serves to delete that exclusion for specific work classifications of employees that are listed in the endorsement's schedule. It is important to note that this endorsement is advisory, meaning its adoption and use can vary by state.

Classes of business it applies to

This endorsement is used for employers whose non-maritime employees may have an incidental exposure to maritime employment or work connected to a vessel. It is not intended for employers whose primary operations are maritime in nature, as those would typically require more specific maritime coverages like Jones Act or USL&H coverage. Examples of businesses or scenarios where this endorsement might be used include:

• Tradespeople: Electricians, plumbers, or carpenters hired by a non-maritime employer who are sent to perform repair or maintenance work on a vessel.
• Caterers or Service Providers: Employees of a catering company or other service providers who temporarily work aboard a vessel to provide services.
• Contractors: Construction contractors whose employees might perform limited work on or near vessels, but who are not seamen.

Special considerations

• Advisory Nature: As an advisory endorsement, its availability and exact wording can be subject to state-specific regulations and insurer adoption. For instance, Wisconsin has listed WC 00 02 04 as a standard endorsement not accepted in the state. Conversely, it is listed for use in Minnesota.
• Scheduled Classifications: Coverage is only modified for the employee classifications specifically listed in the endorsement's schedule. It's crucial that the schedule accurately reflects the intended employees and job roles.
• Not a Substitute for Full Maritime Coverage: This endorsement provides limited maritime coverage under Employers Liability. It does not provide coverage under federal acts such as the Jones Act or the Longshore and Harbor Workers' Compensation Act (USL&H), which require separate, specific endorsements or policies (e.g., WC 00 01 06A for USL&H or WC 00 02 01A for broader maritime coverage).
• Excludes Workers Compensation Law Benefits: The endorsement typically clarifies that it does not provide coverage for medical benefits required by the workers' compensation law of any state listed on the endorsement schedule under Part One–Workers Compensation Insurance for the maritime exposure. The focus is on the Employers Liability aspect (Part Two).

Key information for agents and underwriters

• Risk Assessment: Underwriters need to carefully assess the nature and extent of the incidental maritime exposure. The frequency, duration, and type of work performed on or near vessels are key factors.
• Proper Classification: Ensure that the classifications listed in the schedule accurately describe the work being performed by the employees for whom coverage is intended. Misclassification could lead to coverage gaps.
• Distinguish from Primary Maritime Operations: Agents and underwriters must differentiate between incidental exposures suitable for this endorsement and operations that require dedicated maritime policies. Using this endorsement for significant maritime operations would be inappropriate and could leave the insured dangerously underinsured.
• Premium Considerations: The premium impact of adding this endorsement will depend on the specific exposures, the number of employees, and the classifications involved.
• State Variations: Always verify the acceptability and any state-specific modifications of this endorsement in the relevant jurisdiction.