How To Reduce Workers’ Compensation Costs

How To Reduce Workers’ Compensation Costs

Staffing agencies use their expertise to match qualified employees with employers who need them, which requires special kinds of insurance. When an agency matches an employee with a job, the employee is technically working for the agency, not the company he or she reports to. According to the experts at, this means the need for workers compensation insurance for staffing companies. Here’s how you can save money on the expense.

Screen Your Employees Well

By being lax on screening your potential employees, you are more likely to hire someone who gets into trouble. Ensure you do full background checks, including looking into prior injury history and conducting a drug test.

Verify Skill Sets

People lie on their resumes. Even if someone claims he or she can operate a forklift, you must ensure this is true. Provide entry testing and ask for verification of any licensed or certifications an employee claims to have.

Provide Training

Even if you know someone is qualified for a job, it doesn’t hurt to provide a refresher training course. During the course, include information about what to do if there is an accident and how to report a workers’ compensation claim.
You can do all sorts of things to prepare your employees, but prepare yourself as well. Know local workers’ compensation laws inside and out, and don’t be afraid to seek out a new insurance agency if yours doesn’t offer the services you need at a cost you can afford.

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