Issue link: http://palletcentral.uberflip.com/i/801657
42 PalletCentral • January-February 2017 palletcentral.com leasing agency's workers' compensation policy to apply to you, the alternate employer, as if you were insured under the leasing agency policy. The workers' compensation insurer for the leasing agency will not ask your workers' compensation carrier to share the loss if you are named as an alternate employer. This should block your carrier from asking for any additional premium from you when your policy expires. Solution #2: Your CGL can add an endorsement which would remove the leased employee exclusion Request that your insurance carrier add the following endorsement to your commercial general liability policy: Coverage for Injury to Leased Workers. The advantage of having this endorsement is that your commercial liability carrier will pay for the legal fees to sort this out and pay judgements against you, if any. Recommendation: Require the leasing agency to provide you with the following proof: • A copy of the actual alternate employer endorsement adding your company as the alternate employer on their workers' compensation policy. • A certificate of insurance providing evidence of the coverages required in the leasing agreement. • Evidence that they have put an administrative system in place that will ensure that they verify each year that the alternate employer endorsement form has been renewed. Leasing employees may be the solution to some of your administrative and human resources responsibilities and the best fit for you and your business. However, it is not a strategy without risk. Do your research, understand the different types of alternative work relationships, your employment laws and legal obligations to avoid the unnecessary exposures and expensive problems in the future. PC BUSINESS At Marsh & McLennan Agency, Dennis P. Bilancia is Vice President/ Account Director and Molly Green is Business Outreach Coordinator. Dennis and Molly focus on insurance services for the wood packaging industry and recognize the challenges, and the need for a proactive approach to reducing claims and lowering the total cost of risk. They can be reached at 724-525-2420.