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
