Commercial General Liability (CGL)

Football, Alcohol, and the Night Shift

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It’s football season, and that means that many employees come to work after watching the game with buddies. They come to stock shelves, to work late holiday hours and just to man their normal night shifts. But what about those who come to work after an afternoon or evening of football and alcohol?

Employees working while under the influence of alcohol are a major concern for employers. Here are several steps recommended by the U.S. Department of Labor to handle an employee who is suspected of being intoxicated on the job.

1. Escort the employee to a private area to inquire about the behavior.
2. If possible, call in another supervisor or manager who can serve as a reliable witness.
3. Inform the employee of your concerns and get his/her explanation.
4. Notify senior management.
5. Based upon the employee’s response, place the employee on suspension until a formal investigation is conducted.
6. Arrange for the employee to be escorted home.
It is important to proceed with caution and to document any actions you take. And remember, if the employee is in no shape to work, he or she is in no condition to drive.

Source: US Department of Labor’s elaws®

Leased Staff

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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

Product Recall

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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