Workers’ Comp Options
This option for Workers Compensation is usually for staffing companies with good workers comp loss history. Some of the leading insurance companies include AIG, ULLICO, Travelers, and Pinnacol. As a result of selecting the better staffing companies, their rates are usually more competitive than a PEO, and much less expensive than the State Fund.
The direct carriers will usually require 25% down payment on the annual premium and may finance the remaining 75% over 6- 9 months. Also at the end of the year, they will do an on site audit. Because their policies are generally not “pay as you go,” there is much less interaction during the year with the staffing company. As a result, this may make the audit somewhat intrusive to your operations when it occurs since they will review all the class codes for accuracy – rate discrepancies and payroll levels. This may result in audit premiums which can be unexpectedly substantial.