Understanding Employee Leasing Pricing: Workers’ Compensation Insurance (Work Comp)
Each Employee Leasing quote will have rates you will be
charged for Worker’s Compensation insurance. In general work comp charges
are based on:
Work Comp Classification - The risk associated with the type of work being performed.
This is identified by the Work Comp classifications for the type of work being
performed at your company. Coverage for high risk work like steel erection is
more costly than for coverage for office workers since the job is inherently more
prone to accidents. One of the advantages of using a Employee Leasing company is that
work comp costs are “pay as you go”. Based on the type of work being
performed in your company, each job type is assigned a Work Comp Code. This is
a standardized list published by NCCI that describes the type of work associated
with each work comp classification. Your StaffMarket request for Employee Leasing
proposals (RFP) will identify the work comp codes relevant for your company.
Annual Wages - The amount of work being performed in each particular job classification.
As you might expect, the more employees working in a particular risk
classification, the higher the work comp insurance charges. When using a Employee Leasing company,
employee time is reported to the Employee Leasing company for each work comp risk
classification and is used as the basis for billing you for work comp.
Each Un-bundled Employee Leasing quote you receive will identify the charges for
workers’ compensation insurance. Work Comp charges are usually
based on a “dollar per hundred” charge. For example a $5.00 work comp charge
will be charged at the rate of $5.00 for each $100 of payroll in the
particular work comp classification. You should expect to see work comp charges
identified for each type of work you identified on your StaffMarket RFP. Unlike
many traditional workers’ compensation insurance plans, there are no up-front
deposits required to secure coverage. When using a Employee Leasing company, work comp
coverage is part of the program.
For “white collar” companies without significant work comp exposure these
costs are usually a minor component of the overall price being quoted.
However for companies with higher risk jobs, work comp costs and or savings
are a significant component of the overall quote.
If you have a traditional Work Comp plan in place, the policy declarations
page (DEC page) will identify your current annual costs for your policy and
will identify any discounts you may already be receiving.
Workers Compensation Loss Information History (Loss Runs)
Unless your type of business is primarily involved in office work, information
about your history of claims for workers compensation insurance may be required
in order to get quoted. Policy and claims information should be available from
your current insurance agent or Employee Leasing company. In most states, your
carrier is legally required to provide this information upon request. Providing accurate
information about your claims history pays big dividends for the quantity,
quality and pricing you will receive.
"Carving-Out" Work Comp
If your company already has an attractive workers’ compensation insurance plan in
place, a Professional Employer Organization can “carve-out” work comp coverage and allow
you use the other valuable HR services of while retaining work comp coverage under your current policy.
For more information about engaging a PEO - Professional Employer Organization
for your company, visit our
PEO - Professional Employer Organization area.
StaffMarket Services, LLC
431 12th Street West, Suite 202
Bradenton, Florida 34205
Phone: 941-750-9450 - Fax: 877-471-5608
Office hours are 9:00am to 5:00pm EST
Send e-mail to: StaffMarket Information
2013 StaffMarket Services. All rights reserved.
StaffMarket and StaffMarket.com are registered trademarks of StaffMarket Services, LLC.
You are viewing our regular site View Mobile Site