Why Care, Custody, and Control Is Vital For Staffing Agencies

Employees gathered with hands together

Staffing agencies need Care, Custody and Control (CCC) insurance because they place employees in workplaces they do not directly own or control. Most standard liability policies exclude this type of coverage, but policies can be tailored to remove the exclusion, allowing businesses to add-on the coverage. If an agency is operating without CCC, it can create unique liability risks, particularly in these areas:

  1. Liability for Placed Workers’ Actions
    If a temporary worker causes property damage or harm while on assignment, the staffing agency could be held responsible. Many general liability policies exclude coverage for property that is in the agency’s “care, custody, or control,” making CCC insurance essential.
  2. Coverage for Client – Owned Property
    Temporary employees often handle client-owned equipment, data, or assets. If a worker damages or loses these, CCC insurance helps cover the costs.
  3. Contractual Requirements
    Many client contracts require staffing agencies to carry CCC coverage as part of their risk management obligations.
  4. Protection Against Legal Claims
    Without CCC insurance, the agency could face lawsuits or claims for damages to third-party property that would otherwise not be covered under standard business liability policies.

Real World Examples That Can Trigger CCC Coverage

  • A forklift operator, placed by a staffing agency, improperly stacks pallets in a warehouse. The unstable load collapses, destroying thousands of dollars in inventory. The client files a claim against the staffing agency for damages.
  • A temp nurse, assigned by a staffing agency to a hospital, improperly handles a ventilator, rendering it unusable. Since the ventilator was in the temp’s “care, custody and control,” the hospital sues the staffing agency for replacement costs.
  • A staffing agency supplies a temporary worker to a construction company. While operating an excavator, the worker accidentally hits a support beam, causing structural damage to the site. The construction firm demands the staffing agency pay for repairs.

CCC is crucial for staffing agencies because it fills coverage gaps left by general liability insurance when it comes to property that is under a temporary workers’ control. It assists in fulfilling contract requirements as many businesses require staffing agencies to carry CCC, reduces out of pocket financial losses, covers costly legal fees and expands industry opportunities. Without CCC insurance, staffing agencies risk paying out of pocket for damage caused by temp workers, which can be financially devastating. This coverage is an essential safety net for protecting the agency’s business and reputation.

James Lyons

James Lyons

Risk Advisor
610.533.4701
Email James