Most State and Federal jurisdictions make the temporary staffing firm responsible for covering their placements under worker’s compensation insurance. In the majority of states, temporary placements are considered employees of the temporary staffing firm, and not employees of the client company seeking the temporary staffing assistance. The responsibility ultimately is on the staffing firm if a workers compensation claim were to be placed.
Why is worker’s compensation insurance difficult to obtain for the temporary staffing industry?
Lack of prior worker’s compensation insurance, poor loss experience and/or inadequate safety procedures are most often the root cause(s) of not being able to obtain coverage and control rising costs in this area. Our insurance company will work with you to provide you with a quote that fits your circumstances.
Making your workers compensation policy easier for you:
No matter what size staffing firm you may have, having procedures in place to control your worker’s compensation losses and performing proper screening of employees will aid in this process. These may include, but are not limited to, background checks and investigation into any prior workplace injuries the potential employee may have suffered. In addition, the placement of employees in less hazardous working environments will be beneficial in these areas.
What are the options for obtaining worker’s compensation insurance on your staffing agency?
Be prepared to share the following items with underwriters: Resume on all owners Business Plan, if any ProForma financial statement (new starts) 3 Year Loss Runs (5 if available) Copy of Safety Policy or procedures Client listing (physical address and class codes applicable) Experience Modification Worksheet (if available).
Request information regarding pay plans available (direct billed, monthly payroll reporting, financing plans). Are there minimum annual premiums that will apply?
Work with a knowledgeable and professional insurance representative in prequalifying insurance carriers to fit your needs. Your insurance representative should have the capability of placing your business with more than one insurance carrier and assist with Loss Control measures. Not only will this help to increase your business profitability, but it will aid in the future purchase of insurance coverage at reasonable prices.
Our Georgia insurance company is here to help you better understand your insurance needs. We would love to answer more questions you may have on insurance for a staffing firm. Our insurance agency believes good insurance is built on relationship, so help us get to know you more by joining us on Facebook and Twitter.
For further information on this topic, please contact Mike Garver firstname.lastname@example.org 678-715-0363.