Taylor Agency Staff

Leased Staff

by

Companies that lease staff from employment leasing firms are often concerned with how their insurance coverage will apply to both liability claims caused by the leased worker and injuries to the leased worker.

The commercial general liability (CGL) policy extends liability coverage to the insured organization for claims resulting from the actions of an “employee.” Leased and volunteer workers meet the definition of “employee” in the policy, indicating their actions will be covered. However, the policy does not extend coverage for claims arising out of the actions of a “temporary worker.” Thus, absent a contractual agreement with the leasing firm, coverage may not exist.

The CGL excludes coverage for injuries to “employees”—such injuries should be covered by a workers compensation policy. Your contract with the employee-leasing firm should define which party will cover a leased worker’s job-related injuries. If this liability falls on your business, an endorsement may be necessary to extend coverage to the leased worker.

If you are leasing workers or hiring temps, review your policies to ensure these workers are adequately covered. For information on endorsements that may close gaps in coverage for such employees, call our service team today.

Source: Insurance Services Office

Cargo Coverage

by

Contracts often determine who is responsible for property in transit, but senders, or those actually transporting the property, are particularly vulnerable. This is because most forms of standard property insurance significantly limit or exclude coverage for property while in transit.

Businesses that transport property should consider separate insurance coverage, commonly called a cargo policy, for goods in transit. A cargo policy may cover risks such as fire, explosion, theft, delay, packing deficiencies, malicious damage and other risks common to property in transit.

Review existing and new contracts to determine insurance responsibility, and check your property insurance for information on coverage for property in transit. If coverage is inadequate or non-existent, consider purchasing a cargo policy to cover the gap.

Source: A.M. Best

Product Recall

by

Product recalls can devastate a business if their effects are not covered by the company’s insurance. Losses include the costs of customer notification, shipping, additional maintenance and refunds of purchases. Additionally, there may be damage to your business’ reputation, or the recall may come during your prime sales period, thereby damaging your entire year’s profits. Even if you are not the producer of the recalled item, you could experience grievous losses, especially if you are a retailer whose mainstay is affected by a product recall.

Companies seeking coverage under their general liability insurance policy should be aware that—without special endorsement—costs associated with the recall of a product excluded are likely excluded.

Review your general liability policy for more information on its product recall exclusion. If your business’ success relies heavily on a certain item and is vulnerable to the adverse effects of a product recall, consult with us about the possibility of adding a product-recall endorsement.

Source: USA Today, Consumer Product Safety Commission – www.cpsc.gov