X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

We have a manufacturing client that uses a temporary staffing agency for some of their employment needs. In this particular situation, the worker was provided by the staffing agency for a temporary to permanent position. The contract requires the staffing agency to have the Alternate Employer Endorsement and list our client as an Alternate Employer. This worker was injured and collected WC from the staffing agency and then filed an action against our client. The CGL carrier has denied the claim citing the WC/Employer’s liability exclusion in the CGL and stating that the injured party is an employee as defined by “leased worker”. They advised that this injured party doesn’t fit the definition of a “temporary worker”, which is defined as a person who is furnished to you to substitute for a permanent “employee” on leave or to meet seasonal or short-term workload conditions. Since this injured party was furnished for a temporary to permanent position, they didn’t exactly fit into this definition. Ultimately, the Alternate Employer endorsement should protect our client, but this coverage gap exists if that endorsement isn’t procured. Any suggestions on arguments for coverage under the CGL? This is a very common scenario for many employers.

This premium content is locked for
FC&S Expert Coverage Interpretation subscribers.

Request a Free Trial today to enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Trusted, quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis

Already have an account?
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email customerservice@nuco.com.

FC&S Editors

 

Get Answers Directly From the FC&S Experts

Submit your coverage interpretation question to the editors of FC&S for quick and reliable information.

Question of the Week

Insurance Coverage Q&A: Coverage for Rented Boats ›

Discusses coverage when a boat strikes a rock.

Question of the Week Archive ›

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.