You Don't Have to Be Responsible for Cleaning Up Someone Else's Mess
Insurance carriers typically intend to provide coverage for damage to property of others in your care, custody & control through a Property policy, by providing Property of Others limit or coverage extension. However, this limit or coverage extension is limited to property of others while it is at a location specifically listed out in the declarations schedule, or within a set number of feet of those specified locations.
A Coverage You Can't Go WithoutFor a temporary staffing agency, having the Care, Custody & Control endorsement or sublimit added to your General Liability policy is invaluable. As your temporary employees will be working at your clients or other third parties physical locations, the property most likely to sustain damage as a result of their negligence is at those sites. Property in their care, custody or control may be electronic equipment, a piece of machinery, a forklift, or any other property they utilize in performing their job duties for your client. Your client or other third party will likely expect you to pay for damage to this property caused by the negligence of your employee, but if the damage occurs at a location other than those specifically scheduled on your property policy, neither your General Liability or Property policies will cover this loss, leaving your organization responsible for the damage.
In ActionFor example, a temporary employee, working at one of your clients sites, is moving boxes with a forklift and loses control of it, running into a wall and causing damage to both the forklift and the wall. While the property damage to the clients wall would be covered under a standard General Liability policy, the damage to the forklift would not be, as it was in the care, custody or control of your employee. The Property policy would not cover the property damage under the Property of Others coverage, as the damage took place at your clients site, not one of your own scheduled locations. To ensure proper coverage, a specified endorsement or coverage extension would need to be added to your General Liability policy, adding coverage for property in your care, custody or control.
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