A staffing company is suing its insurer, saying it was left to defend a labor-law class action alone - and denied as one of many.
PeopleShare Industrial, a temporary-staffing firm, sued Philadelphia Indemnity Insurance Company on July 10, 2026, in federal court in the Northern District of Illinois. Its complaint accuses the insurer of ducking its duty to defend and of handling the claim as part of a portfolio-wide coverage position rather than on its own facts.
The trouble started upstream. A temporary worker filed a putative class action against PeopleShare in Cook County in December 2025, according to the complaint. That suit alleges PeopleShare violated the Illinois Day and Temporary Labor Services Act by failing to give day and temporary laborers the required employment notices and the disclosures identifying the clients they were assigned to.
PeopleShare tendered the suit to Philadelphia Indemnity under the Staffing Service Professional Liability Coverage Part of two policies - one with limits of $3 million per wrongful act, the other $5 million, the complaint states.
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...
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