Assurance Staffing Connection - May 2011


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The May 2011 edition of Assurance Staffing Connection, including detail on a recent impactful court decision.

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Assurance Staffing Connection - May 2011

  1. 1. Market Update: Trusted, dependable, specialists.New Illinois Court Decision Impacts Temporary Staffing Serving staffing clients since 1961.Firms and PEOs Nationwide Where we’ll be: In a recent Illinois First District Appellate Assurance Staffing Practice Court decision, the following Westfield representatives will be attending Insurance Company additional insured or sponsoring the following endorsement was evaluated: upcoming event(s): CSP Staffing & Recruiting Conference 2011Who Is an Insured is amended to include as an additional insured May 19- 21, 2011any person or organization for whom you are performing San Diego, CAoperations when you and such a person or organizationhave agreed in writing in a contract or agreement thatsuch person or organization be added as an additional NACE Experience! 2011insured on your policy. July 24-27, 2011 Reno, NV Assurance speaking engagementThe First District construed this endorsement language narrowly,finding that additional insured status would only trigger forpersons or organizations that are direct contracting parties with 2011 NISA National Conventionthe named insured. The above additional insured language fails to September 7-9, 2011provide coverage to any party without a direct contract with the Chicago, ILnamed insured. NAPEOThis ruling is important because it affects not only the parties one September 12-14, 2011is seeking additional insured protection from, but also those Orlando, FLparties one is expected to protect as additional insureds. Wherethis language exists, a party seeking additional insured statusmust have a direct contract with the party providing protection, 2011 Staffing Industry Analystsand the contract must specifically require additional insured Healthcare Staffing Summitprotection. Although the case in question interpreted language September 22-23, 2011found in a Westfield policy pertaining to a construction-related Philadelphia, PAaccident in Illinois, this or similar wording is found in additionalinsured endorsements issued by other carriers and will likely be Assurance key facts:adopted by other states. • Over 400 staffing clients • Located in 50 statesImportant Takeaways: • 22 workers compensation markets • 30 insurance professionals focused • This is a ruling that can impact the staffing and PEO exclusively on staffing industries • Dedicated claims advocacy team • The referenced additional insured wording in this ruling is • Certified ASA continuing education common in the insurance industry and is not unique to provider any one insurance carrier
  2. 2. • Many staffing firms and PEOs enter into agreements with third party vendors that require the staffing firm to name Proud members of: the third party vendor and several others as additional • American Staffing Association insured under the general liability; if this wording is found • National Association of Professional in your policys additional insured endorsement, you Employer Organizations MUST have a direct contract or signatory relationship with the third party vendor and each company you are naming • National Independent Staffing as an additional insured Association • Failure to have additional insured protections for the • Staffing Services Association of contractually required parties may result in a lack of Illinois anticipated additional insured protections; such lack of • TempNet additional insured status could result in litigation brought • Over 20 state associations against your company under the theories of breach of contract, which is not covered under standard general liability forms Contact an Assurance representative:Important First Steps: Mike Atieh, ARM, SCLA, CPCU • Evaluate additional insured wording for all of your existing contractual relationships and those going forward; if your 847.463.7207 policy has an additional insured form with limited wording, work with your insurance broker and attorney to Robert Barrese ensure contract compliance • If you request to be named as an additional insured on 847.463.7183 your clients policy, obtain an additional insured endorsement from your client in addition to the Certificate of Insurance and make sure you have a direct contract Jim Breck, SCLA with each party you require to name you as an additional; insured 847.463.7165 • Develop a system to review the thoroughness of additional insured language and confirm whether a direct Robert Dunn, CPCU, ARM, AU contract is in place with each entity requiring you to list them as an additional insured 847.463.7258We urge temporary staffing firms and PEOs to consider the Jeffery Friedrich, ARM,CPCUpotential impact of this ruling on their own business and consult jfriedrich@assuranceagency.comwith their insurance broker and their attorney as appropriate. 847.463.7236 Guy JacobucciStaffing Practice Update: gjacobucci@assuranceagency.comAssurance Ranked 2nd Best Place to Work in Chicago by 847.463.7233Crains Chicago Business Kurt MurrayAssurance was recently named the 2nd Best Place to Work in kmurray@assuranceagency.comChicago according to the 2011 Crains Chicago Business ranking. 847.463.7154This is the fourth consecutive year Assurance has finished in thetop 10, climbing each year from number 9 up to number 2. Diane (Bozic) Poljak, ARM dpoljak@assuranceagency.comIn determining their rankings, Crains placed great emphasis on 847.463.7298the degree to which employees feel involved and committed totheir work, which they referred to as employee engagement. Key Jeff Tuisl, CPCUfactors in engagement include open and transparent jtuisl@assuranceagency.commanagement, clear communication of company goals and obvious 847.463.7245
  3. 3. paths to promotions. Quote of the month: “To guarantee success, act as if itAssurance has been privileged to be honored by some very highly were impossible to fail."regarded publications over the years. Click here for a full list ofaccomplishments. - Dorothea BrandeClient Resources (access additional resources online):Risk Management Product Discounts www.assurancestaffing.comAccess discounted pricing on quality and innovative riskmanagement products such as background checks, drug testing,integrity testing, safety videos, and protective equipment at Highlights CRC Insurance Services is a leading Wholesale Insurance Brokerage Firm, specializing inProperty, Casualty, and Professional risks. CRC wrote over $1.7Bin premium during 2010. Of that amount, roughly $315M camefrom the placement of Professional Liability policies - includingthose for staffing companies. Philadelphia Insurance Companies (PHLY) specializes in the temporary staffing industry. PHLY understands how to providea flexible and comprehensive insurance program for risks allacross the United States. Below are 8 reasons to choosePhiladelphia Insurance Companies for Temporary StaffingAgencies: 1. Admitted paper and solid AM Best rating of A+/XIV 2. Non-auditable 3. Claims Made or Occurrence coverage trigger options for errors and omissions coverage 4. Employment Practice Liability coverage extends to “placed employees” of the temporary staffing firm 5. Blanket Waiver of subrogation under the General Liability 6. Third Party Fidelity coverage (on client site) available by endorsement 7. Business Income and Extra Expense – Actual Loss Sustained coverage available 8. Interest-free installments available for accounts that generate at least $2,000 in premiumTypes of Staffing Firms We Serve: • Temporary Staffing
  4. 4. • Recruiting and Placement Services • Temporary to Hire • Employee Leasing/PEO • Independent Contractors Work First Casualty is a workers’ compensation carrier providing insurance solutions solely to the staffing industry. As the onlyinsurance company focused exclusively on the staffing industry,they understand the unique challenges you face every day. Theyalso understand that after people costs, workers’ compensation isyour company’s largest expense. A focus on performance andservice by a team comprised of staffing and insurance veterans issupported by solid financial backing. By working with them, theyhope you will come to see the insurance premiums you pay asmore of an investment than an expense. Your investment in WorkFirst yields real dividends in the form of industry-specific andindustry-best claims management, loss prevention, andunderwriting services.For additional information on any of our sponsors, please visittheir website by clicking on their logos.