Calculating Coverage for Short Term Employees

State regulations set the expectation for workers compensation coverage, and even though temporary employment services operate differently from a standard business, they too must comply with coverage requirements. As a whole, staffing agency workers comp insurance is more unique than traditional business settings due to the physical location of the employee’s worksite. However, it is still the responsibility of the temp agency to protect its employees from illnesses, workplace injuries, even discrimination.

Calculating Coverage

Businesses tend to purchase workers comp policies in light of their industry, the number of employees they have, and according to the risks of the operations. These items, as well as the merit ratings of the company, will impact the cost of the insurance premiums. However, a staffing agency has more difficulty in providing absolutes in all these categories, since their employees may be spread through several companies and in different industries. The primary concern is that each employee is receiving the right amount of coverage for the job they are filling. In order to help achieve this balance, the staffing agency must keep records of the following:

Job classifications
Hours worked
Applicable work orders

As www.wwspi.com notes, failing to provide your employee with enough coverage can create a financial problem for both your agency and the hiring client. Work with your insurance provider to ensure your plan has no gaps in coverage.