What Does the LCF Designation Mean In My Workers Comp Policy?

PEOs provide human resource services for their small business clients—paying wages and taxes and often assisting with compliance with myriad state and federal rules and regulations.  In addition, many PEOs also provide workers with access to 401(k) plans, health, dental, and life insurance, dependent care, and other benefits not typically provided by small businesses. 

In PEO policies, the Client policy in name of Labor Contractor AND “Leased Coverage For” or the acronym “LCF” is  followed by the client’s name in Item 1 of the policy (declarations page)

A great example –

An “LCF” designation (“Leased Coverage For”) in the far left box on a WCIRB coverage sheet reflects an approved
arrangement where the employees of a leasing company are covered while working at a client of the leasing company. For example: “ABC LEASING, INC. LCF A-1 TIRES & DONUTS” means the insurer of ABC Leasing has agreed to provide coverage to ABC’s client (Tires & Donuts), which will be specifically listed within the insurance policy.  

You may see the LCF designation on any certificates of insurance issued by the carrier or you may also see the PEO’s name as the first line of the insured with the A-1 Tires and Donuts listed second.

This LCF designation on the Dec Pages sometimes appears in other states than California.

This blog post is provided by James Moore, AIC, MBA, ChFC, ARM, and is republished with permission from J&L Risk Management Consultants. Visit the full website at

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