Every business should prioritize sufficient coverage for potential workplace injuries. Unfortunately, some workplace environments face unique challenges that alter the course of these policies and require special considerations. Staffing workers’ compensation coverage is essential for staffing agencies in case their employees suffer an injury or illness on their staffing assignment. We look at the basics of this coverage for staffing companies, including the challenges staffing agencies face and the most common claims they experience.
Significant Challenges That Agencies Face With Staffing Workers’ Compensation Policies
Staffing agencies have a professional risk level, creating challenges that might surprise you.
For example, staffing companies employ temporary workers in various roles. Rating those employees based on their job’s risk level and classification is challenging, especially with varying levels of skill throughout the agency. Ultimately, when an agency misclassifies a temporary employee, it may result in incorrect premiums for workers’ compensation policies.
Staffing agencies often face higher claim volumes as well. Furthermore, individuals placed by staffing agencies work in various industries and work environments, increasing the risk of accidents and injuries.
Another common challenge is in keeping accurate records for policy reporting. Therefore, staffing agencies often have high-volume placements and frequent turnover, which creates complex and sometimes overwhelming record-keeping requirements.
Common Staffing Workers’ Compensation Claims
The dynamic work environments in staffing agency placements expose agencies to various risks. Additionally, there are several common types of claims that agencies experience.
- Sprain and strain injuries: Workers in physical roles often must lift, carry, and manipulate objects or boxes. It creates a risk of straining, overexertion, or improper lifting issues.
- Slip-and-fall accidents: Client locations are unpredictable, which means staffing agency employees might experience slip-and-fall hazards from wet floors, ice, or even uneven work surfaces.
- Repetitive motion issues: Many staffing agencies place workers in office environments and manufacturing or assembly facilities. These jobs put workers at risk of repetitive motion issues, including carpal tunnel, which may require surgical intervention.
- Struck-by accidents: Staffing agencies that place workers in physically demanding environments, such as construction jobs, face the risk of employees suffering injuries from falling objects and machinery, equipment, and vehicles on the job site.
These incidents often result in severe injuries, costly medical treatment, and prolonged time out of work.
Solutions for Staffing Workers’ Compensation Challenges
Staffing agencies should carefully consider their rosters to ensure that all their records are comprehensive and accurate. Also, accuracy of employee ratings contributes to accurate workers’ comp premium calculations. Proactive communication about risk factors and classifications helps ensure accuracy.
Agencies should also prioritize safety programs. Implement safety protocols, routine safety education, and avenues for workers to report concerns. Agencies can also save on claim management costs and identify potential issues by working with an insurance carrier offering claims management assistance to ensure that workers receive the care and treatment necessary while facilitating the claims process.
Importance of Staffing Workers’ Compensation Insurance
The right policy protects both the agency and the employees on the roster. Hence, agents working with staffing agencies should understand these businesses’ unique climate and challenges to help provide tailored staffing workers’ compensation coverage.
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 (877) 256-0468 to speak with one of our representatives.