Workers' Compensation Tips for Staffing Agency Start-ups
All states except Texas require employers to carry workers' compensation insurance. As a start-up staffing firm, you may want to understand how to better manage claims. Using staffing management services that provide workers' compensation coverage is one strategy. There are more proactive steps you can take to boost profitability and stay litigation-free.
Prioritize safety
Although employee safety is a concern for every industry, the risk is higher in sectors like warehousing and industrial manufacturing. The greater the hazard associated with the industry, the higher the experience modifier and insurance premium. To reduce workers' compensation premiums and rates, it is essential to guarantee that employees are working in a secure environment.
As a staffing agency, this proves challenging as your safety standard is linked to your clients'. Moreover, as a start-up, your risk history is limited. Aiming to minimize workplace injuries by collaborating with clients who prioritize safety is paramount. It would mean collaborating with clients who make sure:
- All employees are properly trained for the job they're doing
- All employees are wearing the proper equipment for the job. This includes desk jobs where cumulative trauma is a common workplace compensation injury.
- The workplace is as ergonomically safe as possible
These are just a few examples. A comprehensive sector-based assessment will help you make good safety-related decisions.
Investigate claims history
Insurers will look at your claims history to determine your risk and quote an appropriate rate. If your firm has had multiple claims, it may be more expensive to obtain insurance through private markets, and you may have to use your state's assigned risk pool. Although assigned risk programs provide you with the necessary coverage for your activities, the premiums associated with these policies are far more expensive than those of similar policies purchased through private marketplaces.
Use a third party to manage workers' compensation
Typically, new staffing agencies are more difficult to insure. To avoid opening your business to liability risks, use a third party to coordinate workers' compensation. This is something USA Staffing Services offers. Through our relationships with private insurance brokers and professional employer organizations (PEOs), we help you procure workers' compensation.
With us, you have a shot of getting better coverage faster and more easily. We're familiar with all aspects of workers' compensation for staffing firms of all sizes, and provide actionable advice on managing employee claims. Contact us for more information about our staffing management services.
Avoid common mistakes
One of the most common mistakes staffing firms make is not correctly classifying employees, failing to report claims in a timely manner, and under-billing accounts. This can be due to the pressure to remain competitive and using codes that may be suitable for the employee's duties instead of the codes specified by governing bodies.
Ignoring or believing claims will resolve themselves without proper management within the first 48 hours can lead to greater costs and employees losing confidence in and feeling disconnected from their employer. To avoid such issues, it is essential to properly classify staff, promptly report any claims, and bill accurately.
Consult USA Staffing Services
Our staffing management services help you manage the challenges of workers' compensation coverage. This is in addition to our talent acquisition and employee risk management services. Get in touch to learn more about how we can support the profitability and success of your firm.
