Voluntary Compensation Endorsement
Published: October 28, 2026 · Last reviewed: October 28, 2026 · Est. reading time 4 minutes
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In plain language: A voluntary compensation endorsement lets a business provide workers' comp benefits to people state law excludes, such as a household nanny. If one of them is hurt on the job, the insurance policy pays as though the law covered them.
Technical definition: A voluntary compensation endorsement, NCCI form WC 00 03 11 A, covers a scheduled employee group. The insurer pays the benefits a designated state law would require, and Part Two liability coverage applies to that group.
Voluntary Compensation Endorsement at a Glance
The table below summarizes a voluntary compensation endorsement.
| Attribute | Detail |
|---|---|
| Category | Workers comp endorsement |
| Related forms | WC 00 03 11 A |
| Who is covered | Employee groups in the Schedule |
| Common solution | Schedule every excluded group. |
Key Takeaways
- A voluntary compensation endorsement pays statutory-style benefits to employees a state act excludes.
- Clients with exempt employees need it, or a lawsuit is those workers' only path.
- An injured employee can still refuse the benefits and sue.
- Ask about every excluded worker group when you review an existing policy.
What Is a Voluntary Compensation Endorsement in Insurance?
A voluntary compensation endorsement is optional insurance added to a workers' comp policy. State acts often exclude farm workers, domestic workers, casual workers, and sole proprietors, and IRMI also lists volunteers and executive officers. Small business owners buy this insurance add-on as a financial safety net for those people.
Benefits follow the designated workers' compensation law: medical expenses, wage replacement, disability benefits, death benefits, and rehabilitation services. Payment requires a signed release, so the employer trades a possible negligence tort suit for a set benefit, a simple form of risk mitigation.
How Does a Voluntary Compensation Endorsement Work?
- The schedule. An insurance provider lists the employee group, state of employment, and designated law.
- The injury. A listed employee is hurt in the course of employment.
- The election. Injured workers choose benefits or a lawsuit, and a damages claim ends the insurer's duty to pay.
Claim Examples Involving a Voluntary Compensation Endorsement
Voluntary workers on a seasonal orchard crew
An orchard in a state that exempts farm labor hires seasonal workers each fall. One picker falls from a ladder. Because the crew is scheduled, the insurance company pays his bills at state rates, with no deductibles, co-payments, or out-of-pocket expenses.
Voluntary compensation for a roofing firm officer
An officer of a roofing firm opted out of state coverage, then fell from a roof. A schedule lists officers' pay and benefits instead of leaving them to an accident and health policy.
Voluntary Compensation Endorsement vs. Standard Workers Compensation: What Is the Difference?
Standard workers' comp covers employees as required by law. A voluntary compensation endorsement reaches people outside the act; foreign voluntary coverage handles employees abroad. The table below compares the two.
| Comparison area | Voluntary compensation endorsement | Standard workers comp |
|---|---|---|
| Primary use case | Employees outside the act | Covered employees |
| Coverage type | Optional | Mandatory |
| Employee's choice | Benefits or a lawsuit | Exclusive remedy |
| Common mistakes | Blank Schedule | Misclassified independent contractors in multiple states |
What Are the Most Common Mistakes With a Voluntary Compensation Endorsement?
- Leaving the Schedule blank. An unlisted group has no coverage, so the injured worker can only sue.
- Covering subcontractors or freelance staff. Construction firms still need certificates from their subs.
- Treating it as primary coverage. Employees covered by a statute already on the main policy stay on the main policy, and excess insurance does not fill the gap.
Sources and References
- International Risk Management Institute (IRMI). Voluntary Compensation Endorsement.
- North Carolina Rate Bureau. WC 00 03 11 A Voluntary Compensation and Employers Liability Coverage Endorsement.