Temporary Employees Can Create Unique Insurance Risks

Property & Casualty, Risk, Senior Living & Social Services, War For Talent

Employers are using the services of temporary employees at an increasing rate.

Temporary employees can be a good solution for employers – allowing quick access to needed personnel without having to make long-term commitments. However, there are unique insurance risks that need to be considered.

The U.S. Department of Labor has determined that temporary staffing agencies and employers share control over a temporary employee, meaning the staffing agency and the employer are jointly responsible for temporary workers, including training, safety and health protections, among other items. If you choose to work with a temporary employment agency, consider the value of having a contract to address this joint employer relationship and respective responsibilities.

For additional information about the insurance risk implications that come into play when utilizing the services of a temporary employee, please review our detailed summary highlighting the distinction between leased and temporary employees as well as issues pertaining to professional liability, general liability, commercial auto, workers’ compensation and employment practices.

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