Issue link: http://palletcentral.uberflip.com/i/801657
palletcentral.com PalletCentral • January-February 2017 41 number. Your workers' compensation carrier would deny the claim because based on the tax ID number, the leased employee does not match your tax ID number, thus is not considered an employee of your company. If my workers' compensation carrier denies the claim, I can just submit the claim to my commercial general liability (CGL) carrier because the injury occurred on my premises…RIGHT? • No. Your CGL carrier would deny the claim. The CGL policy specifically excludes injury to an "employee" and the policy defines an "employee" as including a leased worker. What are some of the consequences if the leased employee or others make a claim against me? • You will have to pay significant legal fees to sort it all out, and most of the costs cannot be recovered even if you win the judgement. • If you fight the lawsuit and lose, you could face an uninsured judgement that is substantial and would be disastrous for your company. • When your workers' compensation carrier realizes you have a leased employee due to the submitted claim, it will likely charge you for those employees as if they were your statutory employees. This would be calculated according to your workers' compensation rate with those additional employees and added on to that premium. You can be audited for this going back as far as three years. I still want to have leased employees. How can I protect myself from these pitfalls? Solution #1: Name your entity as an Alternate Employer Have the leasing agency add you as an alternate employer as an endorsement to its workers' compensation policy. This will allow the When your workers' compensation carrier realizes you have a leased employee due to the subm¡itted claim, it will likely charge you for those employees as if they were your statutor y employees.