UNDERSTANDING EXPERIENCE MODIFICATION RATINGS FOR WORKERS’ COMPENSATION

MOD EXPERIENCE

A quick guide to understanding the NCCI Mod Rating worksheets.

Experience Modification Rating (EMR) in a Nutshell:

The EMR is a number used to adjust insurance premiums, based on a company’s past workplace injury claims.

The Experience Modification Worksheet:

The NCCI Experience Modification Worksheet is a tool used by the National Council on Compensation Insurance (NCCI) to calculate an experience modification factor (EMF) for workers' compensation insurance premiums. The EMF reflects a business's claims history compared to other businesses in the same industry. It considers factors such as the frequency and severity of workplace injuries and illnesses. A lower EMF generally indicates better safety practices and can lead to lower insurance premiums, while a higher EMF may result in higher premiums.

What's in the Worksheet:

• Basic Info: Company details like name, address, and policy number.

• Policy Period: The timeframe for calculating the EMR, usually spanning three years.

• Claims Data: Details of each workers’ comp claim, including date, type, and amount paid.

• Expected Losses: Predicted losses based on industry standards.

  Calculating Expected Losses Formula

  Expected Losses = Payroll Divided by 100 x ELR column

• EMR Calculation: Formula comparing actual losses to expected losses.

• Impact on Premium: EMR affects how much a company pays for insurance.

Using the Worksheet:

• Know Your Numbers: Understand your claims history and EMR to manage costs.

• Spotting Errors: Check for inaccuracies that could affect your EMR and premiums.

• Appeal if Needed: If you think there's a mistake, there's a process for disputing it.

NCCI Mord Worksheet Correction:

To apply for a correction to the NCCI Experience Modification Worksheet, a company typically needs to follow these steps:

1. Review the Worksheet: First, review the NCCI Experience Modification Worksheet provided by your insurance carrier or obtained directly from NCCI. Identify any discrepancies or errors in the data used to calculate your experience modification factor (EMF).

2. Gather Documentation: Collect all relevant documentation that supports your claim for correction. This might include payroll records, claim information, and any other relevant documents that demonstrate inaccuracies in the data used for the calculation.

3. Contact your Insurance Carrier: Reach out to your insurance carrier or agent to discuss the discrepancies you've identified and express your intention to apply for a correction to the EMF. Provide them with the documentation supporting your claim.

4. Submit a Request to NCCI: If your insurance carrier agrees that there are errors in the calculation, they may submit a request for correction to NCCI on your behalf. Alternatively, you may be required to submit the request directly to NCCI, depending on your specific circumstances.

5. Follow Up: Keep in touch with your insurance carrier and NCCI to monitor the progress of your request for correction. Be prepared to provide any additional information or documentation requested during the review process.

6. Review the Updated Worksheet: Once NCCI processes your request, review the updated Experience Modification Worksheet to ensure that the corrections have been made accurately.

Why It's Important:

Understanding your EMR and worksheet helps manage costs and promote workplace safety.

In a nutshell, mastering your EMR and the worksheet can lead to safer workplaces and better insurance rates for your business.

Mastering Workers' Compensation Costs: 5 Quick Tips for Staffing Companies

Work Comp TIPS

5 Quick Tips for Staffing Companies

Implementing these tips can help your staffing company create a safer work environment, reduce the frequency and severity of workers' compensation claims, and ultimately save money on insurance costs.

Implement Safety Programs:

Establishing and enforcing comprehensive safety programs can significantly reduce workplace accidents and injuries. A safe work environment not only protects employees but also lowers the risk of workers' compensation claims. Regular safety training, hazard assessments, and the use of personal protective equipment are essential components of an effective safety program.

Risk Management Strategies:

Engage in proactive risk management by identifying potential workplace hazards and developing strategies to mitigate them. Conduct regular safety audits, address any identified risks promptly, and keep detailed records of these efforts. Insurers often reward companies with strong risk management practices by offering lower premiums.

Return-to-Work Programs:

Implementing a structured return-to-work program can help injured employees get back to work sooner. This reduces the duration of workers' compensation claims and associated costs. Offering modified or alternative duties for injured workers, when feasible, not only supports their recovery but also minimizes the financial impact on the staffing company.

Employee Training and Communication:

Educate employees on the importance of safety, injury prevention, and prompt reporting of any incidents. Clear communication channels regarding safety protocols and reporting procedures can help prevent accidents and ensure that potential issues are addressed promptly. Well-informed employees contribute to a safer work environment, reducing the likelihood of costly claims.

Annual Insurance Coverage Review with Your Agent:

Collaborate with your insurance agent on an annual basis to review your workers' compensation insurance coverage. As the staffing industry evolves and your business grows, the risk landscape may change. Regularly assessing your coverage ensures that it aligns with your current needs and helps identify potential areas for improvement or cost savings. Your insurance agent can provide valuable insights, recommend adjustments, and negotiate on your behalf, optimizing your coverage while keeping costs in check. Regular reviews also allow you to stay informed about industry trends and changes in regulations that may impact your workers' compensation insurance requirements. This proactive approach helps maintain an optimal balance between coverage and cost, ensuring your staffing company is well-protected.

Should your staffing company require assistance with workers' compensation or risk management, please reach out to our team at Akker, LLC. We welcome the opportunity to collaborate with you.

Contact us - info@akkerins.com

#staffing #staffinginsurance #safety #staffingworkerscompensation #workerscompensation #staffingsafety

Navigating Changes in Automatic Gratuities: Insights for Hospitality Staffing Agencies

Hospitality Staffing

How Automatic Gratuities can effect your workers compensation cost.

For staffing companies operating in the dynamic realm of hospitality, where gratuities form a vital part of employee income, recent developments are causing ripples of change. Automatic gratuities, a customary practice in restaurants and hospitality establishments, are undergoing transformations that could significantly impact not only how tips are managed but also the realm of workers' compensation premiums. In this article, we'll delve into this evolving landscape and offer insights tailored to staffing agencies in the hospitality sector.

Decoding Automatic Gratuities:

Automatic gratuities, commonly known as "auto-grats," have gained prevalence in the hospitality industry. These predetermined tips are directly added to customer bills, especially for larger groups or special occasions, ensuring equitable compensation for the workforce. The goal is to mitigate instances of inadequate tipping or omission of gratuities altogether.

A Changing Paradigm:

Yet, the paradigm of automatic gratuities is shifting, leading to changes that demand attention. Historically categorized as regular income, auto-grats are now being viewed differently, potentially impacting workers' compensation premiums – a crucial consideration for staffing agencies specializing in hospitality placements.

Influence on Workers' Compensation Premiums:

Workers' compensation premiums are fees paid by businesses to secure insurance coverage for employees who might sustain workplace injuries. These premiums are influenced by several factors, including industry classification, payroll size, and the frequency of compensation claims.

The evolving status of automatic gratuities has the potential to disrupt this equation. If auto-grats are reclassified as service charges rather than conventional wages, the payroll amount considered for premium calculation could undergo adjustment. Consequently, this might ripple through the overall cost of workers' compensation coverage for staffing agencies and their clientele.

Anticipating Opportunities and Challenges:

The evolving perspective on automatic gratuities brings forth a series of opportunities and challenges specific to staffing agencies. On one hand, agencies might need to navigate intricate payroll classifications and the potential for augmented workers' comp premiums. On the other hand, this change could catalyze a reevaluation of compensation models, potentially leading to elevated morale among the workforce and an enhanced standard of service.

Adapting Strategically:

As staffing agencies in hospitality embrace these shifts, strategic adaptability becomes paramount. The potential impact on workers' compensation premiums underscores the importance of reevaluating payroll processes and, potentially, seeking expert advice to navigate complexities. Moreover, fostering transparent communication with both placed employees and partnering establishments about tipping guidelines and any resultant adjustments is critical for fostering a harmonious working environment.

For staffing agencies specializing in hospitality placements, the evolving landscape of automatic gratuities extends beyond mere operational alterations. Keeping a pulse on these changes and their potential implications for workers' compensation premiums is vital. By staying informed, adapting nimbly, and prioritizing equitable treatment of staff, agencies can effectively navigate these shifts, continuing to provide exceptional staffing solutions that benefit both clients and employees within the hospitality sector.

#staffing #staffinginsurance #insurance #workerscompensation #staffingworkerscompensation

Unraveling the Mysteries: How Workers' Compensation Carriers Determine Treatment Costs and Settlements

Work Comp CLAIM

How Workers' Compensation Carriers Determine Treatment Costs and Settlements?

Workers' compensation insurance provides essential coverage for employees who suffer work-related injuries or illnesses. When an employee files a workers' compensation claim, one of the critical aspects is determining the cost of treatment and potential settlements. However, this process can often seem intricate and mysterious. In this blog, we'll shed light on how workers' compensation carriers calculate treatment costs and settlements based on the type of claim.

Assessing the Severity of the Injury:

The first step in determining the cost of treatment and potential settlements is assessing the severity of the injury or illness. Workers' compensation carriers rely on medical reports and evaluations from healthcare professionals to understand the extent of the harm and the necessary treatment. The more severe the injury, the higher the cost of treatment and potential compensation.

Medical Treatment Costs:

Once the severity of the injury is established, the workers' compensation carrier evaluates the medical treatment costs. This includes hospitalization, surgeries, medications, physical therapy, and any other medical expenses directly related to the injury or illness. The carrier may have established fee schedules or reimbursement rates for specific medical procedures to ensure reasonable costs.

Lost Wages and Disability Benefits:

In addition to medical treatment costs, workers' compensation carriers consider the impact of the injury on the employee's ability to work. If the injury results in a temporary or permanent disability that prevents the employee from working or reduces their earning capacity, the carrier will factor in lost wages and disability benefits. The level of disability and its effect on the employee's ability to earn will influence the amount of compensation provided.

Type of Workers' Compensation Claim:

Different types of workers' compensation claims can have varying implications for treatment costs and settlements. Here are some common types:
a. Medical-Only Claims: These claims involve minor injuries that require limited medical treatment, such as minor cuts or bruises. The cost of treatment is generally lower, and the employee may not receive a settlement beyond medical expenses.
b. Temporary Total Disability Claims: These claims arise when an employee's injuries temporarily prevent them from working. The carrier covers medical expenses and provides wage replacement benefits until the employee can return to work.
c. Permanent Total Disability Claims: In cases of severe and permanent injuries that leave the employee unable to work, the carrier will provide long-term disability benefits and cover ongoing medical expenses.
d. Permanent Partial Disability Claims: These claims involve injuries that result in permanent impairment but do not render the employee totally disabled. The settlement amount is based on the extent of impairment and its effect on future earning capacity.

Negotiations and Legal Factors:

In some instances, the injured employee and the workers' compensation carrier may not agree on the settlement amount or the extent of the injury's impact on earning capacity. This can lead to negotiations or even legal proceedings to resolve the matter. In such cases, a judge or an arbitrator may be involved in determining the final settlement amount.

Determining the cost of treatment and settlements in workers' compensation insurance claims is a complex process that involves evaluating the severity of the injury, medical treatment costs, lost wages, and the type of claim filed. Workers' compensation carriers strive to provide fair compensation that covers the injured employee's medical expenses and lost income while ensuring the sustainability of the insurance system. Through transparency and a thorough understanding of the process, employees and employers alike can navigate the workers' compensation system with greater confidence.

Understanding Staffing Work Comp Waiver of Subrogation and Alternate Employer Endorsement

Workers’ Compensation

Waiver of Subrogation vs. Alternate Employer Endorsement

In the dynamic world of staffing, it is essential to understand the nuances of insurance and workers' compensation to protect both the staffing company and its clients. Two critical endorsements that often arise in staffing agreements are the Work Comp Waiver of Subrogation and Alternate Employer Endorsement. In this blog, we will delve into the significance of these endorsements, why clients are requesting them, and how they provide protection for the staffing company and their end client.

Work Comp Waiver of Subrogation:

The Work Comp Waiver of Subrogation is a contractual provision that relinquishes the staffing company's right to seek reimbursement from a third party for damages or injuries covered under workers' compensation insurance. Instead, the staffing company and their insurance carrier solely bear the financial responsibility.

Why clients ask for this endorsement:

a. Simplifies legal processes: By including a Work Comp Waiver of Subrogation, clients can avoid potential litigation or disputes between the staffing company, the client's insurance carrier, and the third party involved. It streamlines the legal process by assigning responsibility solely to the staffing company.

b. Minimizes delays and expenses: In case of a workplace injury or accident, clients can expedite the claims process as the staffing company's insurance carrier handles all the necessary documentation and settlements. This helps avoid lengthy legal battles, ultimately reducing costs and delays for the end client.

Alternate Employer Endorsement:

The Alternate Employer Endorsement is designed to protect both the staffing company and their clients when the employees are assigned to work at a client's premises. This endorsement adds the client as an "alternate employer" to the staffing company's workers' compensation policy.

Why clients ask for this endorsement:

a. Comprehensive coverage: The Alternate Employer Endorsement ensures that the staffing company's workers' compensation insurance extends coverage to employees when they work at the client's location. It safeguards the end client against liability for workplace injuries or accidents that occur during the staffing company's employees' assignment.

b. Cost and risk allocation: By including the Alternate Employer Endorsement, clients can transfer a portion of the workers' compensation insurance burden to the staffing company. This shift in responsibility helps protect the client's bottom line while maintaining a productive and secure working environment.

In the realm of staffing insurance and workers' compensation, the inclusion of specific endorsements in agreements is crucial for protecting the interests of all parties involved. The Work Comp Waiver of Subrogation and Alternate Employer Endorsement are two such endorsements that clients frequently request to ensure their financial well-being and mitigate potential liabilities. By understanding the significance of these endorsements and their implications, staffing companies can navigate contractual negotiations more effectively, build stronger client relationships, and demonstrate their commitment to comprehensive risk management.

Exploring Workers Compensation Insurance: Guarantee Cost vs. Large Deductible

Guarantee Cost vs. Large Deductible

The financial differences for Guarantee cost vs. large deductible staffing workers compensation insurance.

Protecting employees and managing workplace risks is a crucial priority for every responsible business owner. Workers compensation insurance plays a significant role in ensuring the well-being of employees and safeguarding the financial stability of a company. When it comes to workers compensation insurance, two common options are guarantee cost and large deductible policies. In this blog, we will delve into the differences between these two types of insurance and discuss their respective benefits and financial implications.

1. Guarantee Cost Workers Compensation Insurance: Guarantee cost workers compensation insurance is the traditional and most straightforward option. Under this policy, the insurance carrier assumes the responsibility of compensating injured workers, regardless of the claim's cost. Here are some key benefits and considerations of guarantee cost insurance:

Benefits: a. Predictable Budgeting: With guarantee cost insurance, employers pay a fixed premium based on the projected payroll and risk associated with their industry. This allows for more accurate budgeting and financial planning. b. Lower Initial Costs: Guarantee cost policies generally have lower upfront costs, making it an attractive option for businesses with limited cash flow or smaller budgets. c. Minimal Claims Management: In this insurance model, the insurance carrier handles all aspects of claims management, including claim investigation, settlement negotiations, and payments.

Financial Considerations: a. Higher Premiums: Guarantee cost policies often come with higher premium rates since the insurance carrier takes on the full risk of compensating injured workers. b. Limited Control Over Claims: Employers have limited influence over claim management decisions, as the insurance carrier handles all aspects of the process. c. Potential for Overpayment: In some cases, employers may end up paying higher premiums than the actual claims costs, resulting in potential overpayment.

1. Large Deductible Workers Compensation Insurance: Large deductible workers compensation insurance provides employers with more control and flexibility over claims management and offers potential cost savings. Here are the benefits and financial implications of this insurance option:

Benefits: a. Increased Control: Employers have more say in managing claims, including the ability to choose adjusters, influence settlement negotiations, and implement loss control strategies to prevent future incidents. b. Cash Flow Advantage: Large deductible policies typically have lower upfront premiums than guarantee cost policies. This enables businesses to allocate resources to other areas of operation and potentially earn interest on the retained funds. c. Potential for Savings: If claims are managed effectively and kept below the deductible limit, employers can realize significant cost savings compared to guarantee cost policies.

Financial Considerations: a. Higher Deductible Obligations: Employers are responsible for paying a predetermined deductible amount before the insurance carrier assumes any liability for claims. This means potential higher financial exposure in the event of an accident. b. Cash Flow Risks: While large deductible policies offer cash flow advantages, they require businesses to have sufficient reserves to cover potential claims within the deductible limit. c. Administrative Responsibilities: Employers assume greater administrative responsibilities, such as claim management, reporting, and legal proceedings, which may require additional resources and expertise.

When considering workers compensation insurance, businesses must weigh the benefits and financial implications of guarantee cost and large deductible policies. Guarantee cost insurance offers predictability but may result in higher premiums, while large deductible policies provide control and potential cost savings at the expense of higher deductible obligations and increased administrative responsibilities. It is essential for businesses to evaluate their risk tolerance, financial capabilities, and claims management preferences to determine the most suitable option for their specific needs. Consulting with an experienced insurance professional can provide valuable guidance in making an informed decision.

Remember, the choice between guarantee cost and large deductible workers compensation insurance ultimately depends on the unique circumstances and goals of your business.

Staffing Workers' Compensation Insurance: Unlocking the Benefits of the Voluntary Market

VOLUNTARY MARKET

The benefits of voluntary market vs. the risk pool for staffing workers’ compensation

Workers' compensation insurance is a crucial aspect of protecting both employees and employers in the event of workplace injuries or illnesses. For staffing companies, navigating the realm of workers' compensation insurance can be complex, especially when deciding between the state risk pool and the voluntary market. In this article, we will explore the key differences between the two options and highlight the financial benefits of choosing the voluntary market over the risk pool. By understanding these advantages, staffing companies can make informed decisions about their insurance coverage, potentially saving significant costs in the process.

State Risk Pool vs. Voluntary Market:

State Risk Pool: The state risk pool, also known as the assigned risk pool or the residual market, is designed to provide coverage for high-risk employers who may struggle to find insurance in the voluntary market. Staffing companies operating in high-risk industries or with a history of frequent claims often find themselves in this pool. While the risk pool serves as a safety net, it comes with certain drawbacks.

Voluntary Market: The voluntary market, on the other hand, comprises insurance carriers that are actively seeking to underwrite workers' compensation policies for employers. These carriers have more flexibility in setting rates and coverage options based on their risk assessments. Staffing companies that can demonstrate a commitment to safety measures and a positive claims history may find it advantageous to enter the voluntary market.

Financial Benefits of the Voluntary Market:

1.     Competitive Pricing: In the voluntary market, insurance carriers have the ability to compete for business. This competition can lead to lower premiums, as carriers strive to offer attractive rates to win over employers. Staffing companies can take advantage of this market dynamic by obtaining quotes from multiple carriers and negotiating for more favorable pricing based on their risk profile.

2.     Customizable Coverage: Unlike the risk pool, which offers limited coverage options, the voluntary market provides greater flexibility in tailoring workers' compensation policies to meet specific needs. Staffing companies can work with carriers to create comprehensive coverage plans that align with their unique business requirements. This customization allows for more accurate pricing and ensures that companies are not paying for unnecessary coverage.

Why Staffing Companies Should Consider Leaving the Risk Pool:

1.     Improved Cash Flow: The risk pool often imposes higher premiums to compensate for the inherent risk associated with participating employers. By transitioning to the voluntary market, staffing companies can potentially reduce their premium costs, resulting in improved cash flow. This financial flexibility enables companies to invest in growth, hire additional staff, or allocate resources to other crucial areas of their business.

2.     Enhanced Risk Management: Moving to the voluntary market provides an opportunity for staffing companies to engage in proactive risk management. Insurance carriers in the voluntary market often offer valuable resources, such as safety training programs and loss control services, to help companies mitigate risks and reduce the likelihood of workplace accidents. By actively addressing risk factors, staffing companies can further lower their insurance costs.

The Overcharging Tendency of Risk Pools:

One of the significant drawbacks of the risk pool is the tendency to overcharge employers for workers' compensation insurance. Since the risk pool caters to high-risk employers, premiums are typically higher to offset potential claims. However, many staffing companies find themselves paying more than their fair share due to the generalized approach taken by risk pool pricing. By transitioning to the voluntary market, companies can benefit from more accurate pricing based on their individual risk profiles, potentially saving substantial amounts of money.

Staffing companies operating in the state risk pool for workers' compensation insurance should carefully evaluate the advantages of transitioning to the voluntary market. The financial benefits, including competitive pricing, customizable coverage, improved cash flow, and enhanced risk management, make the voluntary market an attractive alternative.

Navigating Workers' Compensation Insurance: The Impact of One Large Claim and Frequency of Claims

Large Claim vs. Frequency

Navigating Workers' Compensation Insurance: The Impact of One Large Claim and Frequency of Claims

Workers' compensation insurance is essential for employers as it helps them protect their business from the financial liabilities associated with workplace injuries and illnesses. However, not all workers' compensation claims are the same. In this article, we'll explore the difference between one large claim and frequency of claims and how they can impact your workers' compensation insurance.

One Large Claim:

A single, large workers' compensation insurance claim can be costly for an employer. This is because it involves a significant payout, which can quickly add up to substantial expenses. A severe injury or illness that results in a large claim can also impact an employer's workers' compensation insurance rates, as insurance companies will consider it a high-risk factor when calculating premiums.

When an insurance company is evaluating an employer's claim history, they will pay special attention to the cost of the claim. The higher the cost of the claim, the more likely it is to impact the employer's workers' compensation insurance rates. If the cost of the claim exceeds a certain threshold, the insurance company may also consider canceling the policy or not renewing it.

Frequency of Claims:

The frequency of workers' compensation insurance claims is another factor that can affect insurance premiums. Employers who have multiple small claims or a high frequency of claims may also experience an increase in their workers' compensation insurance rates.

Insurance companies consider the frequency of claims as an indication of an employer's safety culture. Employers who do not prioritize safety or who have poor safety measures in place may experience a higher frequency of claims. Insurance companies may view these employers as higher risk and adjust their premiums accordingly.

What Insurance Carriers Look at When Quoting New or Renewal of Workers' Compensation:

When insurance carriers are quoting new workers' compensation policies or renewals, they will take a close look at an employer's claims history. Insurance companies will review the number of claims an employer has had in the past and the severity of those claims. They will also consider any safety measures that an employer has in place to prevent future accidents.

Insurance companies may also consider an employer's industry when calculating premiums. Certain industries, such as construction or manufacturing, may be considered high-risk industries, and insurance rates may be higher than industries with lower risks.

Conclusion:

In conclusion, both one large claim and the frequency of claims can impact an employer's workers' compensation insurance rates. Employers can minimize the impact of these factors by prioritizing safety measures in the workplace and ensuring that their employees are properly trained to prevent accidents. When it comes to renewals or new workers' compensation quotes, it is crucial for employers to maintain a good claims history, as this can impact their insurance premiums. By taking steps to prevent workplace accidents, employers can keep their workers safe and maintain affordable workers' compensation insurance rates.

Lockout/tagout tips for Light Industrial Staffing Company

LOCKOUT/TAGOUT

Tips for lockout/tagout for staffing company

In any industrial setting, safety is paramount, and warehouse operations are no exception. One of the essential safety measures in a warehouse is the lockout/tagout (LOTO) procedure. LOTO is a safety protocol designed to prevent accidental start-up of machinery or equipment that is undergoing maintenance, repair, or servicing. This procedure involves isolating and securing machines or equipment from the power source and attaching warning tags to prevent accidental use.

The importance of LOTO cannot be overstated. Failure to follow this procedure can lead to serious injuries, including amputation, electrocution, and even death. According to the Occupational Safety and Health Administration (OSHA), there are nearly 50,000 injuries and 120 fatalities every year in the United States alone due to improper use of machines or equipment.

Here are some tips on how to implement an effective LOTO procedure in your warehouse:

1. Develop a Written LOTO Program: A written program should be developed to identify and address all the equipment in the warehouse that requires LOTO. The program should include procedures for isolating equipment from its energy source, including electrical, hydraulic, pneumatic, mechanical, and thermal.

2. Conduct Regular Training: Training is essential for all employees who work with or around machines and equipment. Training should include the proper use of LOTO procedures, as well as the identification of hazardous energy sources.

3. Use Proper Locks and Tags: Locks and tags should be of high quality, durable, and resistant to tampering. Locks and tags should also be standardized and identifiable, and every employee should have their own locks and tags to ensure accountability.

4. Follow a Standard Procedure: The LOTO procedure should be followed consistently, with no exceptions. Employees should be trained to use the same procedure for each piece of equipment every time, reducing the risk of mistakes and accidents.

5. Conduct Regular Inspections: Regular inspections should be conducted to ensure that equipment and machinery are properly locked and tagged. Inspections should be conducted by a qualified person who is not part of the team performing the maintenance.

In conclusion, the importance of LOTO cannot be overstated in a warehouse setting. It is a safety protocol that prevents accidents, injuries, and fatalities. The implementation of an effective LOTO program requires a written program, regular training, proper locks and tags, a standardized procedure, and regular inspections. The safety of workers should always be a top priority, and the LOTO procedure is a critical component of a comprehensive safety program.

Staffing Insurance - Difference between General Liability and Workers' Compensation

General liability and workers' compensation insurance are two different types of insurance that offer different types of coverage. Here's an explanation of the difference between the two:

General Liability Insurance

General liability insurance provides coverage for a business in case of claims for bodily injury or property damage caused to a third party by the business. This type of insurance protects a business from financial losses that can occur as a result of accidents, injuries or damage caused to others by the business operations.

For example, if a customer slips and falls in your store and is injured, general liability insurance would cover the cost of medical expenses, legal fees and any damages that you may be required to pay as a result of the accident.

Workers' Compensation Insurance

Workers' compensation insurance provides coverage for employees who are injured or become ill due to their work. This type of insurance covers medical expenses, lost wages, and other related expenses that are incurred by an employee who is injured or becomes ill as a result of their job.

For example, if an employee falls off a ladder and is injured while performing work duties, workers' compensation insurance would cover the cost of medical treatment and lost wages.

The Key Differences between General Liability and Workers' Compensation Insurance

The main difference between general liability and workers' compensation insurance is that general liability insurance covers third-party claims, while workers' compensation insurance covers employee claims.

General liability insurance protects a business against claims for bodily injury or property damage caused to a third party by the business operations. It is designed to protect the business from lawsuits that can result in financial losses.

Workers' compensation insurance, on the other hand, provides coverage for employees who are injured or become ill due to their work. It is designed to protect employees and cover their medical expenses and lost wages, as well as other related expenses.

In summary, general liability insurance and workers' compensation insurance are both important types of insurance that businesses should have. General liability insurance covers third-party claims for bodily injury or property damage caused by the business, while workers' compensation insurance covers employee claims for injuries or illnesses that occur as a result of their work.

STAFFING WORKERS COMPENSATION INSURANCE

Workers compensation insurance is a vital part of protecting your staffing business. This type of insurance covers medical expenses and lost wages for employees who are injured on the job. It also provides death benefits to the families of workers who are killed while working.

Workers compensation insurance is required in most states, and it is important to make sure that your staffing business is properly insured. There are various workers compensation options available for Staffing Companies from Akker, LLC.

• Guarantee Cost Workers Compensation - $0 Deductible

• Small & Large Deductible Workers’ Compensation

• Staffing Workers’ Compensation Captive

• $0 Down Pay-As-You-Go workers’ compensation

In the United States, there are a number of states that have monopolistic workers' compensation systems. These systems are set up so that only one insurer can provide coverage for workers' compensation set up by the state. The problem with these monopolistic systems is that they often lead to higher costs for businesses when it comes to workers’ compensation. The four monopolistic states are Ohio, Wyoming, Washington, and North Dakota.

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Here are a few tips to consider when it comes to risk management and safety for your workers’ compensation insurance.

• Make sure all new employees are aware of your company's safety policy and procedures.

• Conduct regular safety training for all employees.

• Encourage employees to report any unsafe conditions or hazards.

• Invest in safety equipment and supplies.

• Regularly inspect your workplace for potential hazards.

• Report workers’ compensation claims within 24 hours of the accident.

By following these tips, you can help create a safe work environment for your employees and lower your workers compensation insurance rates.

Contact our team at Akker, LLC for your staffing workers compensation.

Email - info@akkerins.com

Insurance Requirements for Staffing Agency

Staffing INSURANCE

What insurance coverages does your staffing company need?

Proper Staffing Insurance is an important part of a staffing company's business. What would happen to your business if one of your employees was injured or became ill? What if one of your employees was involved in an accident at work? Would your staffing company still be able to continue operating if you had to pay for their medical bills or other claims?

Staffing Insurance is a crucial part of a staffing company's business plan. Without insurance, your company could be in a very precarious situation. Below are examples of insurance coverages that are available to staffing companies.

INSURANCE EVERY STAFFING COMPANY SHOULD HAVE:

General Liability Insurance

General Liability is the basic insurance any staffing company might be required to carry by their clients. This includes things like third-party injuries and damage claims, property damage, reputational harm, and copyright infringement.

Professional Liability Insurance

A very important coverage for any staffing company that is in the business of staffing temporary workers or perm placements. Professional Liability can protect your business from malpractice, errors, or negligence in the rendering of your duties. Since you are providing employees to your clients you can run into trouble if any of the employees fail in their duties. For example, an employee not having the necessary skills for the job, not meeting the conditions of your contract, or failing to adhere to industry regulations.

Workers Compensation Insurance

Workers compensation insurance protects employees and employers alike from financial loss as a result of injuries sustained on the job.

-Workers compensation reduces the financial risk for employers in the event of employee injuries.
-Workers compensation insurance means that employees are not uninsured, which is a benefit to employees and employers alike.

ADDITIONAL COVERAGES AVAILABLE FOR STAFFING COMPANIES:

Cyber Liability Insurance

Commercial Umbrella Insurance

Hired and Non-Owned Auto Insurance (HONA)

Crime/3rd Party Theft Insurance

Property Insurance

Employment Practices Liability

Employee Benefits Liability

Abuse & Molestation Insurance

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Contact our team at Akker, LLC we would love to help you with your staffing insurance needs. Akker, LLC works with A+ rated national staffing carriers.

email - info@akkerins.com

Hiring Remote Employees? Are they covered by Workers Compensation?

In today’s innovative technology work force, more and more employers are hiring their employees for remote positions. Those remote employees who live and work in geographic location outside of the employers business location.

Although hiring remote workers has its advantages for example a wider pool of employee talent and savings on overhead cost of office space.

Some employers come to a surprise when they forget to add their remote employees state to their workers compensation insurance.

An employer should notify its workers’ compensation carrier about the remote work arrangement and the employee’s remote location. In most cases, remote employees will be considered localized in the state where they work remotely. Workers’ compensation coverage obligations and systems vary by state.

For example, Texas has an elective workers’ compensation system which allows employers to opt out of workers’ compensation insurance and allows injured employees to seek general tort damages against their employer. If a remote employee is injured in a work-related accident while working from home, it is still the employer’s responsibility and most states will require proper coverage.

Staffing Risk Tips - Pre-Employment - Staffing Safety Tip

Pre-Employment Physicals

- Pre-Employment physicals are a risk management tool used to screen individuals for risk factors that may limit their ability to perform a job safely and effectively.

- Function testing before starting work can prove essential function capability, limiting the risk of injuries associated with certain jobs.

Pre-Employment Training

- Try to stop the accident from happening in the beginning! You can do this by implementing training videos to make sure that your employees know what kind of work hazards they will be around and how to deal with them properly.

- Make sure that you hold regular training sessions to keep employees up to date on new rules and regulations and remind them of the correct safety procedures.

Healthcare Staffing - Insurance Considerations

Generally, healthcare staffing agencies employ doctors, nurses, nursing assistants, medical technicians, and others as contractors on offsite patient facilities. This presents unique liability conditions that require appropriate insurance coverage. Unlike a medical facility that hires workers directly, agencies face the combined challenge of employing medical professionals and dealing with c-employment laws. Typically healthcare staffing agencies have insurance needs that include:

General Liability

Whether a healthcare agency staff worker at a doctor’s office, hospital or for at-home patient care, general liability insurance is a must. This type of insurance plan protects the agency from onsite property damage or physical injuries sustained at the medical facility and agency office. An agency and its assets are also protected if a client files claim against workers or the agency. With general liability, the agency is covered to defend against such claims whether they are fraudulent or not.

Medical Professional Liability

Medical professionals working for a healthcare staffing agency could face claims of negligence or malpractice. Claims against professional competence are not uncommon and do not exclude healthcare staffing agencies. In a litigious society, the agency must protect itself with a medical professional liability insurance policy. Basically, medical professional liability insurance offers protection for a staffing agency that faces liability claims from a worker’s failure to use due care. Somewhere during treatment, the standard of care that a patient expected was not fulfilled. Any bodily injury that resulted in an act of negligence, along with mental anguish, can be covered under this policy. In most cases, a higher percentage of the premium costs go towards defending a negligence or malpractice claim.

Workers’ Compensation

A workplace injury can occur at any time that an agency places a medical worker on a job. Working around chemicals and medical devices increases the potential for serious accidents. Workers’ compensation insurance can protect workers with guaranteed financial benefits for qualified injuries sustained on-the-job. All states require employers, which include healthcare staffing agencies, to carry workers' compensation insurance.

Also known as workman’s comp, this type of insurance is a compromise between workers and staffing agencies. For workers, they relinquish the right to sue the agency if they suffer an illness or injury while at a client’s worksite. In return, the staffing agency agrees to provide state-mandated benefits as a result of the illness or injury. These benefits may include medical care and a percentage of the workers’ pay.

Fidelity Bonds

If at any time a worker is accused of stealing from one of these workplaces, the staffing agency can be held equally responsible for the worker’s actions. Fidelity bonds, which can be individual, scheduled or blanket, will protect the agency against the costs of theft and subsequent legal actions. Issued as a guarantee for clients against losses that result from worker dishonesty, fidelity bonds are an essential part of the staffing agency’s insurance program.

To receive a Staffing Insurance quote for your Medical Staffing Company contact us today.

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Email - info@akkerins.com