I recently quoted a 10M Light Industrial staffing company that had been without workers compensation for about 90 days when they called Work Comp Staffing Solutions. They had been cancelled by Travelers Insurance company in March, and had been shopping for a new policy with their P & C Agent since then. Their losses were about 250K a year on a 500K annual premium. Many claims were still open.
After 7 days, Work Comp Staffing Solutions found a Professional Employer Organization (PEO) quote for the company. The owner felt that, despite the PEO’s rates/terms being favorable (pay as you go and no deductible) , they would eventually find a direct-cheaper policy– so they were told by their P & C Agent who had originally secured the Travelers policy. Even though they had been shopping for the last 90 days.
The owner had incredible difficulty accepting the fact that direct carriers do not want most staffing risks these days. She could not understand that the staffing work comp market had changed greatly since they got their original policy about 2 years earlier.
Now the owner is clearly putting her company at risk each day on wishful (and I would say very unrealistic) thinking.
If you find yourself without compensation, or your traditional Insurance Agent unresponsive about today’s market conditions, call me and hopefully I can help. You can reach me at david@StaffingCompSolutions.com and www.StaffingCompSolutions.com
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
ASA Exhibitor for Annual 2014 Conference
California Staffing Association Member