Workers compensation can be confusing, especially if you are a staffing firm startup with little to no claims history. Typically, new staffing firms are more difficult to insure, which can limit their options for workers comp insurance providers. [more]
With the exception of Texas, each state generally requires that employers carry workers compensation insurance, so it is not something you can simply ignore. It is important to understand how workers compensation works and how you can control your costs by better managing your claims. That’s why in this blog post, we’re outlining three ways to get a handle on your workers compensation:
1) Safety First
The first step to reducing your workers comp premiums and lowering your rates is to make sure that you are placing your employees at a safe workplace. It is difficult to insure a company without knowing its risk history, and for temporary staffing, your workplace safety is only as good as your clients’. It is important to demonstrate proactive behaviors to limit workplace injuries by working with clients who put safety first.
Ensuring that your employees are placed in a safe work environment will be especially important for higher-risk industries, such as warehouses and industrial manufacturing. The more dangerous your industry, the more expensive the insurance based on your class codes and the greater the risk of incurring a higher experience modifier if your employees are injured, or worse.
2) Stay on top of your claims
A safe work environment is only as good as its claims history. If your staffing firm has historically incurred multiple claims, it is much more difficult for an insurance agency to quote a rate that is better than what you might find in an assigned risk pool or fund administered by the state. These insurance options are the most easily accessible, but are typically more expensive than what you could secure in the private market.
Thoroughly investigating the cause of each incident will allow you to prevent reoccurrences and ultimately reduce your chances of incurring additional claims. Taking proactive steps to prevent future incidents will be important if you want to get out of the assigned risk pool or state fund and work with your desired insurance carrier.
3) Work with a third party to coordinate your workers comp
Working with a company like Advance Partners is the best way to improve your workers comp rates and coverage. Companies like Advance understand the challenges in securing workers compensation for the staffing industry, have established relationships with PEOs and private insurance brokers, and have proven success insuring staffing firms of all sizes.
At Advance, we understand the nuances of workers comp in every state and have seen it all. Our experienced staff can leverage our experience to get you better coverage and help you recover if you’ve had a bad experience in the past.
Are you overwhelmed by the idea of workers comp? Advance Partners can help. For more information, please visit the Back Office Operations section of our site.