Insurance – CGL – Leased worker

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Where an employee leased to the holder of a comprehensive general liability policy suffered an injury at the insured’s workplace, the injury came within the scope of the policy.

A declaratory judgment to that effect shall enter.

“The Policy includes a ‘leased worker’ in the definition of ’employee.’ It also excludes a ‘temporary worker’ from the definition of ‘leased worker.’ There is no dispute that [Marciala] Sanchez was a ‘leased worker’ within the meaning of the Policy, unless she is excluded from that definition by reason of being a ‘temporary worker.’ That question, in turn, depends upon whether she was furnished by a labor leasing firm (or other third party) to meet True’s ‘short-term workload conditions.’ …

“Much of Central [Mutual]’s argument focuses upon True [Plastics, Inc.]’s business model, which includes frequent use of temporary employees from Dynamic Staffing and other temporary agencies. Central has shown the factual premise of its argument — that True indeed had such a business model and therefore hiring temporary employees was predictable and in no sense unexpected or unusual. However, the Policy’s language does not make coverage turn upon the insured’s mode of operation. Where Ms. Sanchez was in fact furnished to meet short-term workload conditions, the exception to the exclusion applies; that is to say, True has coverage for Ms. Sanchez’s accident. …

“For the above reasons, it is hereby ordered and adjudged:

“Judgment shall enter for the defendant on the complaint;

“The Court declares that Marciala Sanchez was furnished to True Plastics, Inc. to meet a short-term workload condition and therefore that the employer liability exclusion to the Central Mutual Insurance Company Commercial Policy Number CLP 7989942, effective January 1, 2004 to January 1, 2005, does not apply to the injuries suffered by Ms. Sanchez on October 14, 2004 on the premises of True Plastics, Inc.”

Central Mutual Insurance Company v. True Plastics, Inc., et al. (Lawyers Weekly No. 12-273-11) (23 pages) (Wilkins, J.) (Worcester Superior Court) (Civil Action No. 06-1806) (Dec. 12, 2011).