This option for workers compensation is usually for staffing companies with good workers’ comp loss history. Some leading insurance companies include AIG, ULLICO, Travelers, and Pinnacol. As a result of selecting better staffing companies, their rates are usually more competitive than a PEO, and much less expensive than a state fund. Direct carriers will usually require:
- 25% down payment on the annual premium and may finance the remaining 75% over 6- 9 months.
- An annual, on-site audit that will review class codes for accuracy—rate discrepancies and payroll levels.
- Less interaction during the year with your staffing company because the policies are generally not “pay-as-you-go.” An audit is likely to be intrusive to your operations and audit premiums unexpectedly substantial.
- At least 3 years of good loss history