A staffing employee hired for one assignment can move to another client, take on different duties, or begin working around equipment outside the original job description. Those changes belong in the conversation when agents place workers’ compensation insurance for staffing companies. Accurate information about what employees do, where they work, and the hazards they encounter is critical to properly evaluating a staffing account.
Start With What Employees Do
Job titles provide a starting point, but actual duties tell agents much more about the exposure. Two employees labeled “warehouse workers” could have different responsibilities. One might package products, while another operates a forklift or loads trucks.
When reviewing staffing workers’ compensation insurance, agents should get specific about duties, equipment, work environments, payroll, and applicable classifications. They should also ask how the staffing firm learns when a client changes an employee’s responsibilities. An assignment that changes after placement can introduce hazards not included in the initial assessment.
Understand the Client Worksite
Staffing firms employ workers who perform their jobs under conditions controlled at least partly by a client. The relationship between the staffing firm and the host employer is therefore an important part of assessing the account.
As the Occupational Health and Safety Administration (OSHA) explains, staffing agencies and their clients are joint employers of temporary workers. Both have responsibilities for maintaining a safe work environment. OSHA also emphasizes that staffing agencies have a duty to inquire about conditions at assigned workplaces and verify that host employers fulfill their workplace safety responsibilities.
Agents can ask how a staffing firm evaluates a worksite before sending employees there. Does the agency conduct site visits? How does it identify hazards? What happens if an employee reports duties that differ from the original assignment? The answers provide insight into how closely the staffing firm manages its placements.
Look at Safety Responsibilities and Communication
Clear communication between the staffing firm and client can also affect how workplace hazards are managed. OSHA recommends defining each party’s safety responsibilities in contracts and coordinating training, hazard communication, and other protections.
Agents should review who provides general safety training and who handles site-specific instruction. They should also ask how employees report injuries and unsafe conditions. OSHA recommends exchanging information about workplace hazards before work begins and when conditions change.
Match Coverage to the Staffing Firm’s Placements
A strong submission should give underwriters a clear picture of the staffing firm’s operations. Agents should account for the industries served, employee classifications, payroll, states of operation, loss history, safety procedures, and processes for monitoring assignments.
The state of operation can also affect how coverage needs to be structured. In Ohio, North Dakota, Washington, and Wyoming, employers obtain workers’ compensation through state funds. Because those state programs do not include employers liability coverage, staffing firms may need stop gap coverage to address the gap.
World Wide Specialty Programs offers staffing workers compensation insurance for a range of sectors, including light industrial and manufacturing, health care, office and clerical, hospitality, warehouse and logistics, and finance and accounting. Single- and multi-state policies are available, excluding monopolistic states.
For agents seeking workers’ compensation insurance for staffing companies, understanding the placements behind the payroll is a crucial starting point. Contact us to discuss workers’ compensation options for your staffing clients.
Workers’ Compensation Insurance for Staffing Companies FAQ
Who pays workers’ compensation for temporary employees?
The staffing agency generally employs temporary workers and provides workers’ compensation coverage for them. However, OSHA considers staffing agencies and host employers joint employers for workplace safety purposes, meaning both have responsibilities for protecting temporary workers from job-related hazards.
Why are workers’ compensation classifications important for staffing companies?
Classifications should reflect the work employees perform. A staffing company may place workers in jobs with very different duties and hazards, so accurate classifications help ensure payroll and exposures align with the appropriate workers’ compensation coverage.
What happens when a temporary employee’s job duties change?
Staffing firms should have a process for identifying changes to an employee’s duties or work environment. Agents can ask how clients report assignment changes and whether the staffing firm reassesses the placement when employees begin using different equipment, performing new tasks, or encountering new workplace hazards.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and are committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.