When was the last time you computed what your work comp premiums would be if you paid 20% less in rates, but had a $500 deductible? Or a $1000 deductible and paid 30% less in rates? Or even a $10,000 deductible and a 70% reduction in rates? If you are like most staffing company owners, it may have been some time since you did these calculations.
If it has been while, you may want to sharpen your pencil again. Insurer’s underwriters are really looking favorably these days at staffing companies that are willing to have some “skin in the game” vis a vis using a Work Comp Program with a deductible. Specifically, insurers will often reduce your rates when they see that you are willing to manage a deductible policy. Some staffing owners want a “guaranteed” program where their is no deductible. But the insurer will usually charge a premium for these polices, since they assume that they do not have a “partner” as a policy holder helping them manage and reduce claims.
So as you begin to look at your renewals for 2012, it can be well worth a few hours of your time to see what your Work Comp premium would have been if your rates were lower, as a result of having a deductible in your policy.
Please call us at 202-302-1212 for a FREE quote, that can include various deductible options.
Happy Staffing and Happy 4th of July,
David Schek
www.StaffingCompSolutions.com