Case Study: Nonrenewal Turns Into New Options for Tech Staffing Company
A West Coast staffing company focused on engineering and technical placements had been unsatisfied with the current agency handling their workers’ compensation (WC) and property insurance policies. Last year, the staffing company was notified by their carrier that its WC policy was being non-renewed. The Franchise President contacted numerous insurance agencies, but was met with lukewarm response due to the small size of the company and industry.
The President was then referred to Kelly Ciprian at Assurance, whose sole responsibility and expertise lies with smaller staffing companies. Faced with a nonrenewal, the tech staffing company had received a NCCI WC state fund quote. Kelly was able to get a standard market quote that was 12% less based on estimated payroll for the year. NCCI was also requiring 50% down compared to the market Kelly secured, which was only 15%. This provided a huge cash flow difference that’s integral for smaller businesses. The new client was then able to purchase professional liability coverage, which they never had before.
What are the takeaways?
Because of the nature of the staffing industry and size of your company, you might be faced with nonrenewal or using the NCCI state pool. Don’t panic! Here are four helpful tips:
1. Understand All Your Options – It’s important to seek out different options. Work with insurance brokers who understand the industry, so they can position your company in the best light to carriers.
2. Use Your Network – Often times, vendor partners, associations or other staffing agencies can provide valuable insight into different insurance agencies, so you’re spending less time spinning your wheels.
3. Get Your Entire Insurance Program Checked – Have your current insurance program thoroughly checked to ensure your company is covered in all the appropriate areas. In the case above, the tech staffing company did not realize there was no professional liability coverage in place and the large exposure this brought to the business.
3. 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. This will help you avoid the state pool.
What was the result?
- 12% premium savings
- $7,726.90 in additional cash flow
What the Client Had to Say...
“I spoke with Kelly numerous times, and when she said she’s sending me something, it’s there in a couple moments. If I have questions that she needs to research, the information is there the next day. Clearly, she’s dedicated to doing excellent work. I can’t give Kelly enough praise. She exceeded my expectations at every turn. I've never had the pleasure to work with a better sales or customer service person.”
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