Workers Compensation Insurance For Your Staffing Company

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For Your Staffing Company?

30 years experience working with Staffing companies

With Leaststaff, you have come to the right place – We have great insurance options for you!

  • Free G/L, Workers Compensation and Bonding Quotes.
  • 5 new Work Comp Programs including Professional Employer Organization (PEO’s) / EOR’s/ State Funds Policies/ Private Carrier Policies/ Multi State Programs and more work comp and G/L programs tailored to you.
  • Pay as you go work comp plans. Full and partial health benefits options.
  • G/L and Workers Compensation Programs with No Deductible and No Deposit Available.
  • Leaststaff works with all different types and sizes of Staffing companies.
  • Insurance coverage for start ups and mature Staffing companies.
  • All G/L and workers compensation histories considered for underwriting.
  • All Staffing codes covered for work comp.
  • All G/L and workers compensation options available.
  • Help with payroll funding as well!

The following are just some of the options available to meet your Staffing Firms needs:

Professional Employer Organization

Professional employer organizations (PEOs) enable staffing companies to cost-effectively outsource human resource management including workers’ comp. This allows your staffing firm to concentrate on the operational and revenue-producing side of its operations. A PEO option:

  • Provides a workers’ comp solution often with less expensive rates than some direct carriers and State Funds (depending on your comp loss experience.)
  • Administers workers’ comp claims
  • Manages employee benefits and payroll
  • Manages payroll tax compliance
  • Administers unemployment insurance claims
  • Manages health benefits

As employee related requirements become more and more complex, a PEO solution assumes all these human-resource management responsibilities using a business model identical to ADP’s or Paychecks. A PEO provides integrated services to effectively manage critical human resource responsibilities and employer risks for clients. A PEO delivers these services by establishing and maintaining an employer relationship with a staffing company’s employees and by contractually assuming certain employer rights, responsibilities, and risks.

The staffing company still controls the daily management of employees and controls all aspects of the employees’ work schedules.

Hundreds of staffing companies use PEOs, and estimates show 2-3 million Americans are currently “co employed” through a PEO. Even though there are over 800 PEOs in 50 states, LeastsSaff has found only about five PEOs that specialize in servicing the staffing industry, and can effectively manage the large employee turnover that most staffing companies incur. These PEOs manage about $1 billion of payroll annually each.  The PEO industry currently generates between $136 billion and $156 billion in gross revenues. PEOs have an 88 percent client retention rate due to strong client satisfaction.

Employer of Record (EOR)

An Employer of Record (EOR) is very similar to a Professional Employer Organizations (PEO) in how they both provide work comp and payroll services as a turnkey service. EOR’s enable staffing companies to cost-effectively outsource human resource management services including workers’ comp. In turn, a staffing firm can concentrate on the revenue-producing part of the business. Leaststaffs’ preferred EOR’s (like PEO’s) services all 50 States.

EOR’s became more popular among staffing companies as a workers comp/ payroll back office solution (versus PEO’s) as carriers pulled back from the PEO market after the recession of 2008. Carriers generally feel more comfortable with the EOR legal relationship to the employee. Also, many PEO’s do not work with staffing companies less that 3 years old too.

In an EOR arrangement, the employees are 100% the legal responsibility of an EOR. Conversely, with a PEO, it is a “shared legal relationship” with the employee. This shared legal arrangement with a PEO is also referred to as a “co employment arrangement.” With an EOR, the relationship between them and the staffing firm is generally invisible to the employee and staffing client. The staffing company still controls the daily management of employees and controls all aspects of the employees’ work schedules, pay rates etc.

Responsibilities of an EOR (which are similar to a PEO) :

  • Provides a workers’ comp solution often with less expensive rates than some direct carriers and State Funds (depending on your comp loss experience.)
  • Administers workers’ comp claims
  • Manages employee benefits and payroll
  • Manages payroll tax compliance
  • Administers unemployment insurance claims

Hundreds of staffing companies use EOR’s and they service all 50 States. Leaststaff only works with a few EOR’s because Leaststaff only uses ones that are very experienced in the staffing industry and have stable comp carrier relationships. Some EOR’s are not experienced in the staffing industry and unless they have at least 50 other staffing should be avoided.

State Sponsored Work Comp Program

A state-sponsored system—frequently referred to as a State Fund in many states–pays benefits to workers who become injured or disabled in the course of their employment. All states require employers to cover the cost of work related injuries or illnesses, but not all employers can get their coverage through private carrier, PEO’s or other programs. Employers in high risk industries or with high experience modifications (X-Mods) are frequently turned down. All States are REQUIRED by law to offer some kind of Workers Compensation to all employers. The downside is, usually, State sponsored Programs are not the most economical.

Pay as you Go Work Comp Plans

Most of LeastStaff workers compensation programs are offered as “pay-as-you go” payment plans. With the PEO or staff leasing options, work comp fees are paid on a weekly or monthly basis and are directly related to the amount of payroll processed the previous week or month. This is one of the big benefits to using staff leasing or PEO programs. With <a href=”http://leaststaff.com/direct-carrier/”>direct carrier</a> policies or captive programs, usually a 25% deposit is required upfront. Then the staffing company is required to make monthly installments to the insurance company based on a mutually agreed upon schedule. This is fine if your payroll increases during the course of your policy term, but if your payrolls fall, these prearranged monthly payments can become a cash flow burden.

Direct Carrier

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.
  • A semi -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


Leaststaff Memberships

American Staffing Association California Staffing Professionals

Contact Info

  • Address: PO Box 30476, Bethesda, MD 20824
  • Phone: 202-302-1212

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