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Workers’ comp market is ‘hardening’

July 09 2013

The Patient Protection and Affordable Care Act has grabbed much of staffing executives’ attention. Figuring out financial liabilities implications while trying to be compliant is keeping folks busy. But there’s another development that needs the industry’s attention — a cyclical “hardening” of the workers’ compensation insurance market.

A hardening insurance market means rising premiums and stricter underwriting. Staffing firms — particularly those in areas such as light industrial and hospitality — will feel the pinch given that workers’ compensation costs represent a significant expense for many of them.

An article in the new July 2013 issue of Staffing Industry Review magazine discusses the workers’ comp landscape. Read the article for free by clicking here.

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Med Zone Staffing

Mark Tennison 07/09/2013 04:37 pm

The hardening insurance market is not only affecting light industrial and hospitality areas but the temporary healthcare industry. Our company is in the renewal process and getting declined by insurance providers that worked with us last year. And this is happening without filing any claims.

Payroll companies like ADP and Paychex put the "hard" sell on purchasing their w/c product but failed to deliver after learning our employees (travelers) may live and work in various states.

Other factors include VMS Firms requiring suppliers to add them to the policies and increase the coverage.

Overall, it is more challenging and expensive to attain workers' compensation coverage and forcing many smaller temporary (travel & per diem) staffing companies to adjust their business models to include permanent placement recruiters and training. For medical temp agencies doing less than 10 million/year in revenue, diversifying will be key over the next several years.


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