Voluntary Compensation Endorsement
Definition - What does Voluntary Compensation Endorsement mean?
A voluntary compensation endorsement is a type of workers' compensation that companies purchase on a voluntary basis for workers that are not required to have workers' compensation benefits by law. This can include casual workers, executive officers, sole proprietors, partners, etc. Having a voluntary compensation endorsement can help companies to eliminate a lot of risk.
Insuranceopedia explains Voluntary Compensation Endorsement
By law, many employees are required to have workers' compensation insurance. So, if a worker receives a covered injury or an illness while working, they will receive benefits. However, employees who are not covered by a standard workers' compensation policy could be forced to shoulder the full burden of an injury caused on company property. This often leads to lawsuits. Therefore, many employers simply choose to get voluntary compensation endorsements for their employees who are not covered by a standard workers' compensation policy.