In a word, Yes. Staffing companies still have three main options for workers compensation. 1) State Funds which are usually the most expensive option. 2) Staff Leasing or PEO, which can be a great fit with competitive rates if you need Comp in multiple States and/or want a “Pay as you Go” payment plan. 3) Direct Line Policies with companies like Travelers or AIG. While there are other options, they usually involve a variation of one of these.
Regardless of which option you choose though, the environment is especially challenging if your staffing company falls into one of these areas:
- a) You are a new / or less than a 1 year old staffing company with limited Loss Report history.
- b) You have claims in the last 2 years where the claims to premium ratio is worse that 1:2- For example 10K in premium and 8K in claims would be a challenge
- c) Your annual premium is less that 50K if you intend to try to get insurance with a Direct Line Carrier.
- d) Your staffing service area is in New England.
The best way to address these challenges is to give your broker or agent additional time (at least 4-6 weeks) to research as many options as possible for you. Also expect the underwriter to ask more questions about your company than they may have in the past. Make sure your broker has worked with staffing companies recently, so they know what to expect in the staffing work comp insurance market.
For a FREE work Comp quote, please contact us at 202-302-1212 or www.newcompquote.com.
Best regards,
David Schek
President StaffingCompSolutions.com