The dispute turns on one set of clauses. PeopleShare quotes the policy’s promise that the insurer “shall have the right and duty to investigate, defend, and conduct settlement negotiations, including selection of defense counsel, in any ‘suit’ seeking those ‘damages.'” A covered “wrongful act,” the policy says, is “a negligent act, error, or omission committed or alleged to have been committed by you or any person for whom you are legally responsible in the rendering of ‘staffing services.'” A broad endorsement defines those services as “services provided by a staffing company to their clients including but not limited to” a long list, per the complaint. The alleged failure to give a worker the required notices while placing him at a client site, PeopleShare argues, falls squarely within that language.
Staffing firm says Philadelphia Indemnity refused to defend labor-law class action
