by David Schek | Jun 24, 2014 | Professional Employer Organization (PEO), Workers' Compensation Insurance
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
StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 25 Years.
by David Schek | Jun 16, 2014 | Workers Comp, Workers' Compensation Insurance
Most every staffing company owner thinks about this question at least one time a year — which is usually at renewal time.
NCCI answers this question in a recent report that they published. Here is a link to this report
— http://www.workcompwire.com/2014/06/new-ncci-report-understanding-what-drives-the-underwriting-cycle/
The Report lists these 5 key drivers:
- Cash flow underwriting in pursuit of investment gains is more of a driver of the underwriting cycle than excess capacity.
- As investment gain opportunities deteriorate, disciplined profitable underwriting results materialize.
- As interest rates decrease, hard markets follow. As interest rates increase, soft markets follow.
- Underwriting results are the key driver of the direction of return on surplus.
While a companies loss history is still important in evaluating each companies rates, the overall investment environment may be equally or more important. According to the NCCI report, with interest rates still very low, the carriers are still not receiving sufficient income from their market investments, causing them to depend on higher rates/ income from their policy holders.
This probably means that higher work comp rates are here to stay for a few more years, given that the current inflation indicators are pointing to low interest rates.
This also means that staffing companies will have to shop extra hard to get the best rates possible. They should also prepare for more rate increases over the next few years. If you are shopping for workers compensation, please contact me at david@StaffingCompSolutions.com and visit us at 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
StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 25 Years.
by David Schek | Jun 9, 2014 | Staffing Company, Workers Comp, Workers' Compensation Insurance
I usually get a call a week from a staffing client asking about the potential costs of a new workers compensation claim. Although their workers comp provider will ultimately handle the claim, they know that their future workers compensation rates may reflect this new claim. So naturally, in addition to caring about the employee’s ability to get back to work, my staffing clients are very concerned about the costs resulting from the accident.
I have found that there are a number of factors that are part of estimating the cost of a workers compensation claim.
THE MOST IMPORTANT FACTOR, FROM MY 26 YEARS of EXPERIENCE, IS THE QUALITY OF THE ADJUSTER. Identifying and working with a knowledgeable and diligent workers compensation claims adjuster should be the main objective for the staffing company’s owner, when trying to minimize the financial impact of a claim.
Below is a link to an excellent article that identifies the different cost variables in a workers compensation claim.
— http://www.workerscompensation.com/compnewsnetwork/workers-comp-blogwire/19014-what-is-your-workers-compensation-claim-worth.html
If you are looking for other ideas about ways to minimize your exposure to workers compensation claims, and to lower your work compensation costs; please contact me at at david@StaffingCompSolutions.com. And always feel free to visit us at 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
StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 25 Years.
by David Schek | Jun 2, 2014 | Consulting Services, Staffing Company, Workers Comp, Workers' Compensation Insurance
I send out a lot of emails about workers compensation programs for staffing companies and often forget to ask the simple question:
“How else can I help your staffing company?”
Having owned a 60 office staffing company for over 15 years, I know every day in staffing can be a new challenge, with new tests for you as an owner. From cash flow concerns, to continual margin pressure, I appreciate that owning a staffing company can be somewhat of a lonely business and as an owner you can feel somewhat isolated.
That being said, given my extensive staffing experience of over a quarter century, I may be able to suggest some new ideas and strategies that will improve your business model.
Please feel free to contact me to chat about your challenges. You can reach me at david@StaffingCompSolutions.com or 202-302-1212.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
ASA Exhibitor for Annual 2014 Conference
California Staffing Association Member
StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 20 Years.
by David Schek | May 19, 2014 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
When a staffing company partners with a Professional Employer Organization (PEO) making the right call about new class codes is headache free. PEO’s have experts on staff that will help you define the position accurately, in order to select the optimum code. Also by using a PEO, the staffing company does not have anymore audits because now they occur between the PEO and the carrier.
Staffing companies that use their State Funds for workers compensation, know that picking the wrong code, can raise red flags during an audit– costing the staffing company tens of thousands of dollars in extra fees and penalties. PEO’s help you avoid these costly and aggravating mis coding mistakes that frequently occur during a workers compensation audit..
Here is a wonderful article by Mari Kautzman of Temp Works about this very subject.
http://staffingtalk.com/workers-comp-insurance-headaches/
Please feel free to contact me at david@StaffingCompSolutions.com for a FREE workers compensation quote. Also visit us at www.StaffingCompSolutions.com to review other workers compensation solutions for your staffing company that Work Comp Staffing Solutions can help you with.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
ASA Exhibitor for Annual 2014 Conference
California Staffing Association Member
StaffingCompSolutions.com —- Workers Compensation Specialists and Staffing Business Consultants For Over 20 Years.
