Staffing firms have many options for their workers’ comp insurance including direct carriers, state funds large deductible policies, and professional employer organizations (PEOs). It’s been noted in the industry that a large deductible policy or guaranteed loss program is preferable, but that is frequently not the case.
If you don’t have a “mature” staffing company with a dedicated risk management program and a chief financial officer in the back office to determine how much risk you can take, a PEO is a much better option. Workers’ comp insurance is one of the biggest expenses a staffing company has, and claims can be costly in time and money. PEOs have low deductibles and are affordable.
As more employers use temporary employees, there are small staffing firms popping up to pick of the slack in key areas. And a dedicated back office to ascertain risk and a strong balance sheet is usually not something they have. PEOs can handle all the staffing firm back office functions associated with workers’ comp requirements, until they can wrap their arms around the business. Once they’re in a stronger financial situation, they can consider other options.
Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us as www.StaffingCompSolutions.com.
All the best
David Schek
President-Work Comp Staffing Solutions