Which endorsement would you rely on to address coverage gaps when Workers' Compensation is purchased in a monopolistic state fund?

• A. Employers Liability Coverage Endorsement WC 00 03 03 C
• B. Longshore Endorsement
• C. Foreign Coverage Endorsement
• D. Maritime Coverage Endorsement

Answer: (A)

When workers’ compensation is provided through a monopolistic state fund, the fund covers the statutory benefits, but there can still be liability the employer faces that isn’t paid by WC. The best way to address those gaps is adding the Employers Liability Coverage Endorsement WC 00 03 03 C. This endorsement expands protection for the employer against claims employees might bring that fall outside the pure WC benefits—such as damages resulting from the employer’s negligence or other statutory duties, or common-law claims for injuries or diseases that aren’t fully covered by the state fund. It essentially covers the employer’s liability to employees for those claims, including related legal costs, beyond what WC pays.

The other endorsements are for very specific situations: Longshore covers certain maritime workers under federal law, Foreign Coverage extends WC when employees work abroad, and Maritime Coverage targets seamen and related activities. None of these address the general gap between WC benefits and an employer’s potential liability in a monopolistic fund setup as directly as the Employers Liability Coverage Endorsement.