A Workers’ Compensation Guide for Staffing Agencies

Over 140 million workers are covered in the United States by workers’ compensation insurance, amounting to over 94 percent of employees. Whatever the case may be, it can be disastrous to not have coverage when an accident happens. There’s also the chance that something could happen and your agency is actually underinsured. The U.S. Bureau of Labor Statistics found that around three million nonfatal workplace injuries were reported in 2012.

So what happens for all those people that end up injured? Not every accident is preventable. When you do the math, it comes to down to that for every 100 workers, almost four are injured. Injuries are a hassle to not only the one who is hurt, but to the entire company. It’s a bad way to hinder work productivity.

Having a plan in place to help employees recover and return to work is vital for any staffing agency, along with a workers’ compensation insurance program. This is a workers’ compensation guide for staffing agencies, along with some implementation advice from Chron.

Classification Matters

Jobs have to be classified by risk for workers’ compensation. A staffing agency is going to need to know the details about the job the employee is taking on and how dangerous it can be. Providing for someone working in an office is going to be a little different from someone that’s contracted to do hard labor. This part should always be done correctly in order to insure that every worker gets the proper coverage that they need.

Recordkeeping Should Be Organized

Documents needs to be well kept and organized. It’s important to keep track of the contract jobs that employees work and for how long. Knowing basic details (address, social, things like that) about all your employees means that the staffing insurance premium is correct, and that they can quickly be accounted for in an emergency.

Worker Hours and Work Orders

Workers’ compensation insuranceis always going to vary because a staffing agency constantly fluctuates with new and old employees. That’s why keeping accurate reports of all hours worked is the only way to make sure that when workers’ comp is used, the employee gets the amount that they need.

Work order systems need to always be on point. That means keeping track of every business that reaches out for temporary employees. This is a great way to insure that coverage is accurate.

Direct-Hire Temporary Workers

If an employer wants a direct-hire temporary worker, accurate coverage must be provided that abides by the laws of the particular state you’re in. Since each state is different, finding out proper protocol is indispensable.

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 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 (800) 245-9653 to speak with one of our representatives.