What it does
The coverage forms define "employee" to include a "leased worker" (but not a temporary worker), so the Employee Indemnification And Employer's Liability exclusion removes coverage for injury to leased workers. CA 23 25 changes the definition of "employee," for that exclusion only, so it does not include a leased worker or a temporary worker. Injury to a leased worker caused by a covered auto (for example, a leased worker injured as a passenger or struck by the insured's truck) can then be covered under Covered Autos Liability.
Who needs it
Businesses staffing through professional employer organizations or labor leasing firms, where the leased worker may be able to sue the client company if the leasing firm's workers compensation exclusivity does not protect it.
Key points
- It does not make leased workers insureds; it addresses injury to them.
- The fellow employee exclusion is a separate issue; see CA 20 55 and CA 20 56.
Quoting notes
Get the PEO or leasing contract and check who provides workers compensation and whether the client company is an alternate employer on that policy.
