How can Workers Compensation coverage be extended to a domestic employee?

Workers Compensation coverage can be extended to a domestic employee by adding the Voluntary Compensation Endorsement. This endorsement is specifically designed to provide coverage for employees who do not meet the typical requirements for mandatory workers’ compensation insurance but for whom the employer wishes to extend coverage, such as a domestic employee (like a housekeeper or nanny).

This option allows employers to offer benefits similar to those of standard workers' compensation policies, despite the unique employer-employee relationship in a domestic setting. Domestic workers often face different legal obligations regarding insurance, making this endorsement key for compliance and ensuring that these employees have access to necessary medical and wage-loss benefits in case of an injury during work.

The other options do not effectively extend Workers Compensation coverage in this context. For instance, simply including an Additional Insured clause typically pertains to general liability insurance and would not provide the necessary workers' compensation benefits. Purchasing a separate policy could be an option, but it may not be feasible or practical, depending on the specific circumstances or state laws. Increasing coverage limits does not directly address extending coverage to a domestic employee; it merely raises the financial caps on existing policy limits without changing the coverage scope itself.