Do Temporary Employees Need Workers’ Compensation Coverage

Do Temporary Employees Need Workers’ Compensation Coverage?

Temporary workers can be a great asset for companies looking to handle busy work periods or knock out special projects with a little extra help. But no matter if it’s a one-day project or a six-month contract, temporary workers are just as vulnerable to becoming injured as full-time permanent employees. So, what happens when a temporary employee is injured? Who’s to blame? And who needs to carry workers’ compensation coverage?

It’s important to understand the impact that not having workers’ compensation insurance would have on a company when a temporary employee is injured. It doesn’t matter if it’s a major accident on a job site or a trip and fall case in an office, an injured employee in any setting can spell trouble for a business without the right staffing workers’ compensation benefits.

Being Sued by a Temporary Employee

Any business or staffing agency can be sued by anyone, at any time, so it’s important to operate with caution. When contracting work with a temporary employee, businesses need to make sure the staffing firm has a workers’ compensation policy in place to protect the workers they contract out. A policy should be reviewed by legal help to make sure it notes responsibility for any workers’ compensation claim made by workers placed with a company.

Temporary workers can create a high level of confusion when it comes to workers’ compensation programs. When a company uses a workforce that is recruited on a short-term basis, careful review by all parties is necessary when it comes to the details of the relationship.

In general, it’s important to note, that a staffing agency will be responsible for carrying workers’ compensation coverage. However, this isn’t something that is known off-hand by all parties involved.

Are Lawsuits Covered?

Now that it’s clear that anyone can find themselves in the middle of a lawsuit, it’s important to look at the extent of workers’ compensation coverage and how it protects all involved. Workers’ compensation turns the relationship between staffing agency and company into a joint employer status under certain workers’ compensation laws. The reason here is that there have been times where claims have been false, presenting an abuse in claims by employees.

In reality, both the staffing agency and the client they are working with need to take on the responsibility to provide employees with mandated protections. Since the temp agency is the employer, workers’ compensation benefits should be covered by their policy. But it’s still important for the temp agency to understand the contractual delineation of responsibilities between themselves and the client.

About Monarch Partners Group, LLC

For more than 30 years, Monarch Partners Group (MPG) and affiliate Nationwide Employer Services LLC have focused on providing Workers’ Compensation insurance solutions for distressed risks and industries. Our long-term history and expertise in the space and market sources enable us to find solutions for business owners and brokers that they may otherwise not have access to. We write Workers’ Compensation coverage for all types of risks in all states with solutions that Employer Organization (PEO), Employer Of Record (EOR) and Captive Insurance programs. To learn more about our products and services, contact us today at (855) 435-5153.