Any losses that occur under this endorsement are chargeable to the workers' compensation modifier, just as "regular" part one or part two losses on the workers' compensation policy. They also would apply to any financial program calculations, such as retrospective rating adjustments or deductible calculations, unless the financial agreement states otherwise.

In regard to how the endorsement works, it permits employers to offer workers or volunteers who are normally exempt from workers compensation the statutory workers' compensation benefits of the state(s) designated on the endorsement. The classes of workers to which the employer wants to offer benefits must be listed on the endorsement.

However, the injured employee does not have to accept the workers' compensation statutory benefit. He or she can sue the employer. That suit would fall under the employers liability section of the voluntary compensation endorsement. The fact that the employee or volunteer can accept or decline the statutory benefits is why both workers' compensation and employers liability provisions are included in the endorsement.