Care, Custody, and Control (CCC) insurance is critical for businesses that handle property belonging to others. This coverage excludes property owned by you or your business, as well as land, buildings, or permanently attached fixtures within a structure. Standard liability insurance often excludes coverage for damage to property in the care, custody, or control of the insured, making CCC insurance essential in specific industries, particularly within the staffing space.
General liability (GL) policies can be tailored to remove the standard exclusions within the GL form, allowing businesses to integrate CCC coverage. This ensures they can effectively manage on behalf of the insured’s staffing operations.
Key components of CCC coverage
- Care: The insured is responsible for overseeing the property for a set amount of time.
- Custody: The insured oversees safeguarding the property.
- Control: The insured has power over the property.
This coverage is crucial for protecting against financial liability if a business (or its employee) damages or loses a customer’s property while it is in their possession. Many industries require CCC insurance to fulfill contractual obligations with clients, and this is especially important within the staffing industry. Employees often work on client sites and frequently possess control over client property (i.e. a forklift, machinery, tools, laptops, goods or products of the client, etc.).
Scenarios that could trigger CCC coverage in the staffing industry
- A temporary employee placed as a forklift operator can drop a pallet of goods and damage the product; or the temp forklift operator can hit into the wall and damage the forklift itself.
- A temporary employee working as computer technician drops a customer’s laptop onto the floor, shattering the screen and components.
- An in-house/corporate employee damages a leased copy machine.
- A temporary restaurant waitstaff drops a tray of glasses.
- A temporary maintenance worker gets a rag caught in a floor-cleaning machine, leading to a motor burnout and damaging the client’s equipment.
In the staffing industry, managing risks associated with CCC is essential to safeguarding our insureds’ businesses. Whether handling client equipment, working on-site, or managing sensitive tasks, the right insurance coverage ensures that clients are protected from unexpected liabilities. By securing a policy that addresses CCC exclusions, an insured can confidently take on contracts knowing they’ve eliminated this coverage gap and that their business, as well as their employees, are properly covered.
For more information, please contact a Marsh McLennan Agency (MMA) staffing advisor.
