VOLUNTEER EXPOSURE AND WORKERS ’ COMPENSATION
an employee for the purpose of workers ’ compensation benefits .
DOES THE VOLUNTARY COMPENSATION AND EMPLOYERS LIABILITY COVERAGE ENDORSEMENT COVER VOLUNTEERS ? To qualify for coverage under the Voluntary Compensation endorsement , a worker must be an excluded employee as defined by each state ’ s WC law . As the name suggests , it is a coverage employers provide voluntarily and they choose to do it as a hedge against lawsuits by uninsured workers . For instance , most states exempt domestic workers , agricultural and farm workers , casual labor , and seasonal workers from benefits under the WC law , but they still define them as employees . This endorsement is intended to provide WC benefits for these exempt employees .
From a claims handling perspective , the amount of work that is needed to determine the compensability of a claim for a volunteer under an insured ’ s WC policy is significant . The adjuster will need to determine whether or not a volunteer in a given state can be considered an employee under that state ’ s WC statute and is , therefore , eligible for coverage under WC , or if he or she is excluded from coverage . In addition , for volunteers who also have a job where they are eligible for WC benefits , the carrier could also be liable for those wages ( up to the maximum weekly WC rate ) and be required to return the volunteer to work at his or her primary job . In addition , any claim paid for an injured volunteer will affect the insured ’ s experience modification .
An Accident and Health policy is a simple way to provide volunteers with added protection to meet their individual needs without increasing benefit costs . It can complement existing medical coverage and help narrow financial gaps in coverage caused by out-of-pocket expenses , such as deductibles , co-payments , and non-covered medical services . These policies usually pay the costs of emergency room services and follow-up treatment to predetermined limits based upon the type of injury . Accident and health policies will also cover volunteers as they commute between their homes and places of service , a benefit not typically found in general liability or WC policies .
Additional accident and health benefits include partial or total disability benefits and critical care benefits . These policies are often excess insurance , meaning that they pay only after other available insurance ( generally the volunteer ’ s personal health insurance ) is exhausted . If the volunteer is uninsured , the accident and injury policy would “ drop down ” and become primary coverage for the injury . Please keep in mind that accident and health insurance coverage varies by carrier and must be reviewed carefully . +
Volunteer Exposure & Workers ’ Compensation
BY : LARRY WICKS , CPCU , WORKERS ’ COMPENSATION CLAIMS ADVOCATE , SPECTRUM INSURANCE GROUP
FALL 2016 | 31