Workers compensation insurance for staffing agencies is an often overlooked topic. Often, workers are unaware that they need to have workers compensation insurance while on the job. Often, they simply don’t believe that they need it. In fact, many staffing agencies encourage their agents to skip workers compensation insurance for staffing companies entirely. If you want to avoid expensive workers compensation insurance for staffing agencies, follow these steps.
There are several different types of workers compensation insurance for staffing agencies. The first is traditional workers compensation insurance for employees. This type of insurance pays benefits to injured workers in a traditional manner. This includes medical costs and lost income. It also typically requires that workers take a drug test prior to receiving benefits.
Another form of workers compensation insurance for staffing agencies in Los Angeles is called “worksite safety” or “asset protection” insurance. This form of insurance pays benefits to employees that are injured on the job. It requires employers to invest money in purchasing safe equipment for their employees. Some worksite safety or asset protection policies also require employers to provide slip and fall protection to employees on the job. Some policies also provide additional coverage to employees if they are killed or injured while at work.
Employers who choose to skip workers compensation insurance for staffing companies may be at risk of paying out-of-pocket for medical bills and disability benefits for employees. These benefits are provided by traditional workers compensation insurance for employees. So, if you choose this option, you will be required to purchase the policy through the employment agency through which you are working. You will not be able to purchase the policy online. This limits your ability to compare the various rates from different insurance companies.
Many states also have laws that require employers to offer workers’ compensation insurance to their employees, whether they are employed by a staffing firm or directly. This requirement may apply to small staffing firms such as travel agencies and independent contractors. But, businesses that employ hundreds or thousands of temporary workers may be required to purchase this type of insurance from the company they hire. In some cases, temporary businesses may choose to be covered through one of the larger employment agencies.
There are many benefits to purchasing workers compensation insurance for staffing agencies. For one thing, you can cover a large number of employees for a smaller premium than you would be able to with one person on your own. Furthermore, you can provide insurance to your workers even if they are self-employed or have an opportunity for contracting out work.
Businesses should be cautious about purchasing workers’ compensation insurance for payroll workers, though. Some companies may try to circumvent the law by paying an independent contractor to handle their insurance needs instead of hiring a full-time employee. Also, there may be situations in which a small company can save money by contracting out insurance needs, but it is illegal to pay someone else to represent them in court or provide legal advice. If you do purchase insurance for your company, keep in mind that there may be a limit on the types of claims you or your employees can file.
There are many options available to businesses when it comes to workers compensation insurance for staffing agencies. You should consider several factors before you make a decision. Make sure your staffing agency is properly licensed and can provide proof of insurance. If your state requires an insurer to offer this type of coverage, check with your company to see if it’s a service your company requires in order to operate.