COMPREHENSIVE INSURANCE SERVICES
Businesses and Nonprofits that lease staff from employment leasing firms need to be concerned with how their insurance coverage will apply to (1) liability claims caused by the leased worker and (2) injuries to the leased worker. The standard commercial general liability (CGL) policy extends liability coverage to the insured organization for claims resulting from actions of an "employee". The definition includes leased workers and volunteer workers. However, nonprofits managers/executive directors and business owners should take note that the policy does not extend coverage for claims arising out of the actions of a temporary worker. Thus, managers and owners should understand that, absent a contractual agreement with a leasing firm, coverage may not exist. The CGL excludes coverage for injuries to employees. Such injuries are covered by a workers compensation policy. Upon entering into a leasing agreement, business owners and nonprofit manangers shoud be sure to review the contract for wording on who (the nonprofit or owner seeking the staffing or the staffing agency) is responsible for covering the person's job-related injuries. If this liability falls on the business or nonprofit, an endorsement may be necessary to extend coverage for the leased worker.