Risk Management & Mitigation Flashcards
7 cards from real CSP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Management & Mitigation flashcards as text
A staffing firm places a temp worker at a client site where the worker is injured. Under co-employer doctrine, which party typically bears primary responsibility for workers' compensation?
Answer: The staffing firm as the legal employer of record
The staffing firm, as the worker's legal employer of record, is generally the primary carrier of workers' compensation coverage.
Which practice best protects a staffing firm when a client demands that a placed worker be immediately terminated without cause?
Answer: Requiring the client to submit termination requests in writing
Requiring written termination requests creates documentation that protects the staffing firm if a wrongful termination claim arises.
A staffing firm fails to verify a candidate's professional license before placement, and the unqualified worker causes client losses. What type of liability does the firm face?
Answer: Negligent hiring liability
Negligent hiring occurs when an employer fails to exercise reasonable care in verifying a candidate's qualifications before placement.
To mitigate the risk of wage theft claims, staffing firms should ensure client contracts explicitly address which of the following?
Answer: Client obligation to report worker hours accurately and timely
Contractually obligating clients to report hours accurately and timely protects staffing firms from wage theft exposure caused by client-side errors.
Which insurance type is most critical for a staffing firm to carry to cover claims that a placed worker's negligence injured a third party?
Answer: Commercial general liability (CGL) insurance
Commercial general liability insurance covers bodily injury or property damage caused by the firm's placed workers to third parties.
A staffing agency discovers a client is using temps in roles that exceed the agreed scope of work, increasing accident risk. What is the agency's best immediate action?
Answer: Issue a written notice to the client and update the service agreement scope
Issuing written notice and updating the service agreement documents the risk, establishes accountability, and formally corrects the scope.
Under the ACA's employer shared responsibility provisions, which staffing firm workers are most likely to trigger coverage obligations?
Answer: Full-time equivalent workers averaging 30+ hours per week over applicable look-back period
The ACA defines full-time employees as those averaging 30 or more hours per week, triggering employer shared responsibility obligations for coverage.