Quantcast
Channel: Latest Softwares in the Internet Today » Insurance
Viewing all articles
Browse latest Browse all 8

Liability Concerns and Employment Agency Insurance

0
0

shutterstock 29451151 Custom 300x200 Liability Concerns and Employment Agency InsuranceDue to the nature of the business, owners of temporary staffing agencies must address a number of unique liability exposures that are often not covered by their standard insurance policies. Even though the agency’s clients supervise those employees at off-site locations, the agency retains liability for the actions of its employees. This arrangement has been known to create gaps in insurance coverage that are not always evident and the policy should be thoroughly examined by an expert in temporary staffing insurance.

 

Often, such gaps are not noticed until an uncovered claim forces the staffing agency to pay full damages out of its own pocket. For example, let’s say that a temporary employee is working at a client’s warehouse, and while operating a forklift he or she loses control and causes damage to both the equipment and the wall of the building. Will employment agency insurance cover the cost of those damages?

 

It should, depending on the wording of the contract. General Liability policies cover bodily injury and property damage claims that arise during the course of day-to-day business. This means that the manner in which a policy classifies a business can affect whether coverage is provided.

 

The difference between temp staffing and employment agencies

 

Temporary staffing agencies are often misclassified as employment agencies, which provide permanent employees to other businesses. This can cause issues for temporary staffing agencies because they remain the employer of any workers they place, making them liable for the actions of those workers. An employment agency’s liability for a placement’s actions, by contrast, ends the moment it places the employee with a client.

 

Even though a business may be properly classified, a standard General Liability policy would only provide coverage for damage to the client’s wall in the given example, but would exclude the damages to the forklift. A standard policy has exclusions for damage caused to property in the care, custody, or control of the owner (or in this case, the employee).

 

Therefore, any time an employee uses equipment owned by a client, the agency must assume liability for damage caused to that equipment, even though they are covered for any damage caused by the use of that equipment. Endorsements are available to remove this exclusion, or simply add a specific sub-limit that provides coverage, but insurance carriers will only offer these additions when specifically requested.

 

It may seem a bit complicated, which is why an agent is the best person to help determine the exact type of employment agency insurance required for a particular set of circumstances.


Viewing all articles
Browse latest Browse all 8

Latest Images

Trending Articles





Latest Images