Alternate Employer Endorsement

What Is an Alternate Employer Endorsement?

An alternate employer endorsement expands existing workers' compensation coverage to different companies with whom the primary insured might carry on with work. An alternate employer endorsement records different companies to be remembered for the policy's coverage inside the policy's endorsement schedule.

It is much of the time utilized when businesses use contracted employees through impermanent employment agencies or subcontractor sellers, to keep away from workers' compensation lawsuits.

How Alternate Employer Endorsements Work

Businesses might regard themselves as short-staffed and may look for the services of brief employment agencies. Workers employed through a hiring agency are covered under the workers' compensation policy that the agency has purchased. At the point when the employee is recruited out to an outside company, the client requiring the employee's services will look for an alternate employer endorsement.

This type of workers' compensation arrangement will shield the contracting business from lawsuits coming about because of any injury or disability the temp employee might endure while at work.

Endorsement Schedule

The alternate employer endorsement covers injury supported by employees during their brief or extraordinary employment by the alternate employer listed in the endorsement schedule. The schedule must show the state in which the temp workers are employed. The impermanent employment agency stays the worker's primary employer, and the client is insured exclusively while the temp worker is assigned to it. In the event that a contract or project is determined in the schedule, coverage applies just to work performed by temp workers under that contract or however long that project would last.

Alternate Employer's Obligations in the Claims Process

At the point when an alternate employer is added to a policy's endorsement schedule, the alternate employer is frequently required to aid any claims investigations. This regularly means reporting any wounds a temp employee might endure or guaranteeing the employee is given legitimate medical treatment following an injury. They must likewise give to the policyholder any documentation connected with the injury. Nonetheless, assuming the policy is canceled under any circumstance, the insurance company isn't committed to tell the alternate employer, on the grounds that the transitory employment agency stays the primary party on the policy.

Illustration of an Alternate Employer Endorsement

A delivery company anticipates higher volumes over special times of year, so management recruits a temp worker through an employment agency. To shield itself from lawsuits, the delivery company requests that the agency safeguard it as an alternate employer under the agency's workers' compensation policy.

A long time into the job, the temp employee drops a package on their foot and requires medical care. The delivery company completely consents to the claims investigation and presents generally required occurrence reports and archives on time. The employee will be covered under the agency's workers' compensation policy, and consequently can't make a claim against the delivery company's insurance policy.

Features

• The hiring agency or subcontractor agency stays the worker's primary employer, with coverage that applies just to work performed by the impermanent workers under that contract or as long as necessary.
• An alternate employer endorsement broadens workers' compensation coverage by including extra companies to the policy's endorsement schedule.
• An alternate employer endorsement is a valuable device to safeguard a business from lawsuits while contracting employees from an impermanent employment agency or subcontractor.