Selecting the Right Work Comp Broker

Just like you would not go to a car dealership to buy a boat, you should not buy workers comp insurance from a broker who does not specialize in this type of insurance coverage. Even more importantly, your broker should know the staffing industry and how your staffing business functions.  Determining  the right workers compensation insurance program for your staffing company is probably the most important payroll decision you can make; and can mean the difference between making money and losing money.

A good broker can help you address all these important issues (and more):

  1. Should you sign up with the State Fund? and What is the State Fund?
  2. Should you consider using a PEO (Professional Employer Organization) or a Private Carrier?
  3. Should you use a deductible program, and if so what should the deductible be?
  4. Do you have a good risk management policy  in place?
  5. What are the payment terms for your policy, and  are they negotiable?
  6. What does  “Pay as you Go” mean?
  7. Will I get good service from the broker (and insurance company) even if my payrolls decrease?
  8. Does the broker have staffing company  references?

Finally, your broker should be an advocate for your staffing company with the insurance carrier.  From making sure you are using the most correct (and least expensive comp codes) for your business,  to selecting the right insurance program for your staffing business as it grows.

David Schek

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