Staffing Case Study: Navigating From an Assigned Risk Pool
A contract staffing company for the transportation industry approached Assurance to aid them with their Workers’ Compensation (WC) insurance. The client utilized a large worldwide insurance broker who was unable to secure WC insurance at their renewal forcing them to enter the Assigned Risk Pools. Assurance met with the client and structured an acceptable alternative market proposal that saved them over $500,000 and allowed for greater business flexibility. Assurance also worked with the client to improve safety efforts in the areas of driver training, fleet safety and claims management.
What are the takeaways?
You might be in or facing an Assigned Risk Pool due to your staffing company’s high-risk placements, poor loss experience, bad claims history – or even size. It’s important to work with insurance brokers who understand the industry and can help position your company in the best light to carriers.
1. Understand All Your Options – In the early 1980’s, 90 percent of the insurance dollars were spent in the traditional insurance marketplace. Today, less than half of the insurance dollars are spent there. It’s important to evaluate other solutions, such as higher deductibles, self-insurance programs, captives, risk retention groups…etc.
2. Effectively Communicate Your Claims History – Work on a detailed claims summary with your insurance broker to help carriers better understand the issues at-hand and that the risk was much better than it appeared on paper.
3. Complete Regular Claim Reviews – Undergo regular claim reviews with your broker to help mitigate loss on the old claims and control any new activity.
4. Establish a Safety Committee – Establish a safety committee made up of employees, management and your broker’s risk management department. By creating a safety committee that is backed by management and includes participants of all experience levels, you’ll receive proper input and have the ability to take action quickly. Trainings can be conducted on key exposure areas to eliminate potential losses.
What was the result?
After one year, Assurance was able to place the client in a traditional insurance market at 41 percent premium savings without upside risk.
ABOUT THE AUTHOR