Voluntary Compensation Endorsement
What Does Voluntary Compensation Endorsement Mean?
A voluntary compensation endorsement is a type of workers’ compensation coverage that companies purchase voluntarily for workers who are not legally required to receive workers’ compensation benefits. This may include casual workers, executive officers, sole proprietors, partners, and similar categories. Implementing a voluntary compensation endorsement can help companies mitigate significant risks effectively.
Insuranceopedia Explains Voluntary Compensation Endorsement
By law, many employees are required to have workers’ compensation insurance, ensuring they receive benefits for covered injuries or illnesses sustained while working. However, employees not covered by a standard workers’ compensation policy may have to bear the full costs of injuries incurred on company property, often resulting in lawsuits. To avoid such risks, many employers opt to provide voluntary compensation endorsements for employees who fall outside the scope of standard workers’ compensation coverage.
