Staffing firm says Philadelphia Indemnity refused to defend labor-law class action & more related News Here

The dispute begins over a set of clauses. PeopleShare quotes the policy’s promise that the insurer “shall have the right and duty to conduct the investigation, defense, and settlement negotiations, including the selection of defense counsel, in any ‘suit’ seeking damages. The policy states that a covered “wrongful act” is a negligent act, error, or omission committed by you or any person for whom you are legally responsible in the rendering of ‘staffing services.'” A comprehensive endorsement defines those services. PeopleShare argues that the alleged failure to provide required notice when placing an employee at a client site falls squarely within that language, “including, but not limited to, a long list of services a staffing company provides to its clients.”