What To Look For
What To Look For
Checklist to Verify Temporary Staffing Agency Workers' Compensation Coverage in California
Request the Certificate of Insurance (COI) from your staffing agency. Check for the following:
1
Date Box
The date on the top right of the certificate should be within one week of requesting the COI. There may also be a unique electronic date and time stamp located at the far bottom of the COI. These two dates should match.
2
Producer Box
Producer must include an active producer license number in this box. Verify the authenticity and authority of the producer, and their number, via this California Dept. of Insurance Link: https://cdicloud.insurance.ca.gov/cal. It will confirm if the producer is authorized to sell insurance in California.
3
Insured Box
The staffing agency’s name must be in the “INSURED” box and NOT the “DESCRIPTION OF OPERATIONS” box. The insurance coverage is limited to the company in the named Insureds box only, with NO exceptions. If the name of your Staffing Agency is not in the Insured box, they do not have coverage under the policy number listed on the COI, period. If you feel this is in question, you have the right to ask to see the actual declaration pages of the formal policy. (See additional steps to take to validate coverage.)
If the staffing agency is using a Professional Employment Organization (PEO) to process payroll or provide other services, including Workers' Compensation Insurance, then the name of the PEO and the name of the staffing agency will be in the insured box as follows: “PEO name L/C/F staffing agency name”. This is acceptable.
Sample:
PEO Name
LCF Staffing Company Name
Address
4
Insurer(s) Affording Coverage Box
This is the insurance company that writes the policy. Each insurance company that is approved to provide workers' compensation coverage has an assigned NAIC number. This number must be listed on the certificate of insurance. You can check the number's accuracy at insurance.ca.gov and whether or not the insurer is approved to write policies in California. If there is a name of the insurance carrier but no NAIC number, or the NAIC number does not match the Carrier, this is a Red Flag and indicates fraud.
5
Certificate Number Box
Each certificate of insurance produced must have a unique certificate number listed in this box. If you receive multiple certificates with the same number, or with no number, this is a potential indication of forgery or fraud.
6
Policy Number Box
This policy number is unique to the policy and never extends longer than a 12-month period. A new policy number is issued if the policy is renewed to provide coverage for the next 12-month policy period for the Staffing Agency. If you have different certificates with the same policy number that predate the policy effective date, or extend beyond the policy expiration date, that is a “Red Flag” and an indication of forgery or fraud.
7
Policy Effective Date and
Policy Expiration Date Box
These two dates should align with the time period and dates that you will be working with your agency. If the policy dates on the COI are close to the expiration date you should ask for a new COI or policy to be provided to you at that time.
8
Description of Operations Box
This is where waiver of subrogation language, exclusion or inclusion of officers, and additional physical locations may be entered. Any company named in this box does not mean they are insured by the policy. Again, only the company named in the Insured box is insured by the policy.
9
Certificate Holder Box
Companies named in the cert holder box are not insured by the policy, unless specifically listed in the insured box. Certificate holders are granted the right to be informed of any cancellations to the policy, and to check that it's active. Certificate holders have the right to contact the insurer to check the validity of the policy. If the COI is legitimate and compliant, the insurer will have access to the cert holders and will be able to see you as a cert holder in the system. If the cert holder is not in the insurer's system, it may be an indication that the cert was forged or produced without consent of the carrier.
10
Authorized Representative Box:
This signature is pre-approved or provided by the carrier and applied to the COI when issued. The signature will clearly show a name. If the carrier does not recognize name or the signature, it may be an indication that the Cert was forged or altered.
Checklist to Verify Temporary Staffing Agency Workers' Compensation Coverage in California
Request the Certificate of Insurance (COI) from your staffing agency. Check for the following:
1
Date Box
The date on the top right of the certificate should be within one week of requesting the COI. There may also be a unique electronic date and time stamp located at the far bottom of the COI. These two dates should match.
2
Producer Box
Producer must include an active producer license number in this box. Verify the authenticity and authority of the producer, and their number, via this California Dept. of Insurance Link: https://cdicloud.insurance.ca.gov/cal. It will confirm if the producer is authorized to sell insurance in California.
3
Insured Box
The staffing agency’s name must be in the “INSURED” box and NOT the “DESCRIPTION OF OPERATIONS” box. The insurance coverage is limited to the company in the named Insureds box only, with NO exceptions. If the name of your Staffing Agency is not in the Insured box, they do not have coverage under the policy number listed on the COI, period. If you feel this is in question, you have the right to ask to see the actual declaration pages of the formal policy. (See additional steps to take to validate coverage.)
If the staffing agency is using a Professional Employment Organization (PEO) to process payroll or provide other services, including Workers' Compensation Insurance, then the name of the PEO and the name of the staffing agency will be in the insured box as follows: “PEO name L/C/F staffing agency name”. This is acceptable.
Sample:
PEO Name
LCF Staffing Company Name
Address
4
Insurer(s) Affording Coverage Box
This is the insurance company that writes the policy. Each insurance company that is approved to provide workers' compensation coverage has an assigned NAIC number. This number must be listed on the certificate of insurance. You can check the number's accuracy at insurance.ca.gov and whether or not the insurer is approved to write policies in California. If there is a name of the insurance carrier but no NAIC number, or the NAIC number does not match the Carrier, this is a Red Flag and indicates fraud.
5
Certificate Number Box
Each certificate of insurance produced must have a unique certificate number listed in this box. If you receive multiple certs with the same number, or with no number, this is a potential indication of forgery or fraud.
6
Policy Number Box
This policy number is unique to the policy and never extends longer then a 12-month period. A new policy number is issued if the policy is renewed to provide coverage for the next 12-month policy period for the Staffing Agency. If you have different certs with the same policy number that predate the policy effective date, or extend beyond the policy expiration date, that is a “Red Flag” and an indication of forgery or fraud.
7
Policy Effective Date and Policy Expiration Date Box
These two dates should align with the time period and dates that you will be working with your agency. If the policy dates on the COI are close to the expiration date you should ask for a new COI or policy to be provided to you at that time.
8
Description of Operations Box
This is where waiver of subrogation language, exclusion or inclusion of officers, and additional physical locations may be entered. Any company named in this box does not mean they are insured by the policy. Again, only the company named in the Insured box is insured by the policy.
9
Certificate Holder Box
Companies named in the cert holder box are not insured by the policy, unless specifically listed in the insured box. Certificate holders are granted the right to be informed of any cancellations to the policy, and to check that it's active. Certificate holders have the right to contact the insurer to check the validity of the policy. If the COI is legitimate and compliant, the insurer will have access to the cert holders and will be able to see you as a cert holder in the system. If the cert holder is not in the insurer's system, it may be an indication that the cert was forged or produced without consent of the carrier.
10
Authorized Representative Box
This signature is pre-approved or provided by the carrier and applied to the COI when issued. The signature will clearly show a name. If the carrier does not recognize name or the signature, it may be an indication that the Cert was forged or altered.
Red Flags
If the Certificate of Insurance reads correctly but the coverage cannot be verified at the WCIRB website, then a trusted insurance professional should be consulted or call the insurance carrier directly.
A Certificate with a similar, but slightly different name, from the legal name of the staffing agency providing it to you. Check the validity and status of the staffing agency on file with the Secretary of State at, https://www.sos.ca.gov/. The name on file with the state should match the COI.
A Certificate listing more than 2 names as “Insureds” should be scrutinized. Generally, a PEO, LCF a staffing agency and Certificate Holder should be the maximum number of names. If a different name appears in the description box, this is a Red Flag. If the certificate is for the staffing agency directly, there should only be two names on it.
If the Staffing Agency is NOT in the Insured Box - but is in the Certificate Holder box, or a different location on the COI, it is not valid; the Staffing Agency does not have proper insurance.
A certificate with several types of fonts and/or sizes on it should be evaluated for legitimacy.
If you have different COI’s with the same policy number, that predate the policy effective date, or extend beyond the policy expiration date, it is an indication of forgery or fraud.
If the Staffing Agency is using a PEO and does not have LCF wording in the insured box, or has a “DBA”, the Certificate is not valid.
The use of a MEWA for workers’ compensation has been deemed illegal in the state of California. Any certificate referring to a MEWA as the insurance company or within the policy information should be checked through the WCIRB and the Department of Insurance for legitimacy and registration.
Red Flags
If the Certificate of Insurance reads correctly but the coverage cannot be verified at the WCIRB website, then a trusted insurance professional should be consulted or call the insurance carrier directly.
A Certificate with a similar, but slightly different name, from the legal name of the staffing agency providing it to you. Check the validity and status of the staffing agency on file with the Secretary of State at, https://www.sos.ca.gov/. The name on file with the state should match the COI.
A Certificate listing more than 2 names as “Insureds” should be scrutinized. Generally, a PEO, LCF a staffing agency and Certificate Holder should be the maximum number of names. If a different name appears in the description box, this is a Red Flag. If the certificate is for the staffing agency directly, there should only be two names on it.
If the Staffing Agency is NOT in the Insured Box - but is in the Certificate Holder box, or a different location on the COI, it is not valid; the Staffing Agency does not have proper insurance.
A certificate with several types of fonts and/or sizes on it should be evaluated for legitimacy.
If you have different COI’s with the same policy number, that predate the policy effective date, or extend beyond the policy expiration date, it is an indication of forgery or fraud.
If the Staffing Agency is using a PEO and does not have LCF wording in the insured box, or has a “DBA”, the Certificate is not valid.
The use of a MEWA for workers’ compensation has been deemed illegal in the state of California. Any certificate referring to a MEWA as the insurance company or within the policy information should be checked through the WCIRB and the Department of Insurance for legitimacy and registration.
Additional Steps to Follow to Validate the Authenticity of the COI
Additional Steps to Easily Validate the Authenticity of the COI
Verify Coverage with the California Workers' Compensation Insurance Rating Bureau.
Active coverage should be verified on the WCIRB coverage verification website: https://www.caworkcompcoverage.com/. Only a date and the staffing agency name should be entered into the search fields. It will then show the name of the Insurance Carrier of the Staffing Agency. The insurance company listed on the WCIRB should match the certificate. If there is “no record found”, this means there is NOT valid workers' compensation insurance in place for the Staffing Agency.
Contact the Insurance Carrier Directly.
Do not contact the “Producer” as they may be involved in the fraud. You as the Certificate Holder, always have the right to contact the insurance carrier to check the validity of the policy and confirm that the insurance company is insuring your staffing agency and to confirm that you are a listed Certificate Holder within their system. If the Cert Holder is not in the carrier’s system, it may be an indication that the cert was forged or produced without consent of the insurance carrier.
Request a hard copy of the actual Insurance Policy issued to the Staffing Agency by the insurance carrier.
This policy would have the name of the Staffing Agency as the named Insured.
Have the staffing agency provide a hard copy of the Alternate Employer Endorsement (AEE).
The staffing agency’s name should appear in the insured/policyholder section. An Alternate Employer Endorsement protects you because an AEE extends workers' compensation coverage to companies that the staffing agency typically does business with. All insurance companies that write staffing companies can provide this endorsement.
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Additional Steps to Follow to Validate the Authenticity of the COI
Additional Steps to Easily Validate the Authenticity of the COI
Verify Coverage with the California Workers' Compensation Insurance Rating Bureau.
Active coverage should be verified on the WCIRB coverage verification website: https://www.caworkcompcoverage.com/. Only a date and the staffing agency name should be entered into the search fields. It will then show the name of the Insurance Carrier of the Staffing Agency. The insurance company listed on the WCIRB should match the certificate. If there is “no record found”, this means there is NOT valid workers' compensation insurance in place for the Staffing Agency.
Contact the Insurance Carrier Directly.
Do not the contact the “Producer” as they may be involved in the fraud. You as the Certificate Holder, always have the right to contact the insurance carrier to check the validity of the policy and confirm that the insurance company is insuring your staffing agency and to confirm that you are a listed Certificate Holder within their system. If the Cert Holder is not in the carrier’s system, it may be an indication that the cert was forged or produced without consent of the insurance carrier.
Request a hard copy of the actual Insurance Policy issued to the Staffing Agency by the insurance carrier.
This policy would have the name of the Staffing Agency as the named Insured.
Have the staffing agency provide a hard copy of the Alternate Employer Endorsement (AEE).
The staffing agency’s name should appear in the insured/policyholder section. An Alternate Employer Endorsement protects you because an AEE extends workers' compensation coverage to companies that the staffing agency typically does business with. All insurance companies that write staffing companies can provide this endorsement.
Quick Links
Start Your Submission
Check Your Certificate Now
Follow Us
Copyright 2024, All Rights Reserved.