Workers’ Compensation Insurance and the Staffing Industry

staffing agency insurance

Robust workers’ compensation coverage is essential to an effective staffing agency insurance policy. This type of coverage provides for injured workers who require income protection while unable to work or need medical care due to on-the-job accidents.

How Does Workers’ Compensation Insurance work?

Workers’ compensation insurance addresses the financial needs of injured employees regardless of fault and provides benefits for dependents in the case of worker death. Individual states have differing laws that determine how much an employee is entitled to, what types of injuries are covered, how to assess impairment and how to deliver medical care.

What Staffing Agencies Should Know

Staffing agencies face unique liability concerns when it comes to workers’ compensation. In addition to providing insurance coverage for in-house employees, firms must be equipped to cover temporary employees placed in diverse roles in other companies.

Insurance premiums for workers’ compensation are calculated according to specific industry payroll and risk classification. Determining appropriate benefits and premiums can be especially complicated for staffing firms, whose employees often take on very different types of work at different times. Roles that are considered safe may only require a moderate premium, while those that involve high-risk activities are often considerably higher.

As temporary employment placement businesses continue to thrive and expand into new industries, that value of robust, versatile staffing agency insurance coverage is more clear than ever.