Reference Library

Wording and explanation of the Alternate Employer Endorsement, WC 00 03 01 A

Summary

An alternate employer endorsement extends workers compensation coverage to other companies with whom the primary insured may do business. Alternate employer endorsement lists other companies that are to be included in the policy’s coverage in the policy’s endorsement schedule.

An alternate employer endorsement often comes into play when businesses use temporary employment agencies. Businesses may find themselves short-staffed on occasion and will seek out the services of such companies to fill the gaps. Workers employed through the temporary employment agency are covered under the workers’ compensation policy that the agency has purchased. When the employee is hired out to an outside firm, the firm that hires the employee will seek an alternate employer endorsement in order to protect it from any lawsuits that the temporary employee may suffer.​

Endorsement Text

WC 00 03 01 A–ALTERNATE EMPLOYER ENDORSEMENT

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Effective 15 February 15, 1989

This endorsement applies only with respect to bodily injury to your employees while in the course of special or temporary employment by the alternate employer in the state named in Item 2 of the Schedule. Part One (Workers Compensation Insurance) and Part Two (Employers Liability Insurance) will apply as though the alternate employer is insured. If an entry is shown in Item 3 of the Schedule the insurance afforded by this endorsement applies only to work you perform under the contract or at the project named in the Schedule.

Under Part One (Workers Compensation Insurance) we will reimburse the alternate employer for the benefits required by the workers compensation law if we are not permitted to pay the benefits directly to the persons entitled to them.

The insurance afforded by this endorsement is not intended to satisfy the alternate employer’s duty to secure its obligations under the workers compensation law. We will not file evidence of this insurance on behalf of the alternate employer with any government agency.

We will not ask any other insurer of the alternate employer to share with us a loss covered by this endorsement.

Premium will be charged for your employees while in the course of special or temporary employment by the alternate employer.

The policy may be canceled according to its terms without sending notice to the alternate employer.

Part Four (Your Duties If Injury Occurs) applies to you and the alternate employer. The alternate employer will recognize our right to defend under Parts One and Two and our right to inspect under Part Six.

Schedule

Notes:

1. This endorsement may be used when the insured named in Item 1 of the Information Page has agreed to provide insurance against workers compensation and employers liability claims made by employees of the insured against a special or temporary employer named in the endorsement Schedule.
2. This endorsement may be used only if the state of temporary or special employment is a state shown in Item 3.A. of the Information Page.
3. If the insured is in the business of providing temporary workers for others, the insurer may show the alternate employers in the Schedule by the words “all” or “any.”
4. Three uses of this endorsement are illustrated here:
   1. Use this endorsement if the policy is issued to a contractor (the insured) who is required by an oil company (as alternate or special employer) to provide workers compensation and employers liability insurance to protect the oil company from claims brought by the contractor’s employees.
   2. Use this endorsement if the policy is issued to a business that operates and manages property for others (the insured) who is required by the property owner (the alternate employer) to provide this insurance to protect the owner from claims brought by employees of the operator/manager.
   3. Use this endorsement if the policy is issued to a supplier of temporary office help (the insured) who is required by its customer (the user of the temporary office help–the alternate employer) to provide this insurance to protect the customer from claims brought by the insured’s employees against the alternate employer.
5. Show an appropriate entry to Item 3 to limit the endorsement to apply only to specific jobs or contracts of the insured. This endorsement may not be used to limit coverage to specific jobs or contracts in Wisconsin.
6. If this endorsement is used because of temporary or special employment in Illinois, the carrier must send a written notice of cancellation to all Illinois Alternate Employers shown in the Schedule.

Assigned Risk Market

This endorsement is available for assigned risk employers, other than PEO’s and temporary staffing agencies, when required by their contracts with customers. The customer’s state of operations must be shown in Item 3.A of the policy.

Refer to The Basic Manual Assigned Risk Special Rules , Rule 4-G Available Coverages.