How Staffing Firms with $10M+ Payroll Can Cover Both W2s and 1099s Under One Policy

Workers’ comp insurance is often one of the most challenging parts of running a staffing firm, especially for companies with large, multi-state operations and a blended workforce of both W2 employees and 1099 independent contractors. While many insurance brokers can only offer limited options—typically covering just W2 staff—at NPN Brokers, we’ve built our business around finding coverage solutions where others can’t.

If your staffing firm has over $10 million in annual payroll, we may be able to secure a single workers’ comp policy that covers both your W2 and 1099 workers. Here’s what that means, how it works, and why so many staffing companies rely on us to get the job done.

Why Most Brokers Can’t Cover 1099s Under a Standard Policy

It’s common for traditional workers’ comp brokers to focus exclusively on policies for W2 employees. These policies are straightforward from an underwriting standpoint—W2 workers are employed directly by your company, which makes risk assessment and payroll audits more predictable for carriers. But 1099 contractors are a different story.

Because 1099s are technically not employees, many insurers view them as outside the scope of traditional coverage. This often leaves staffing companies in a bind—either they go without coverage for contractors and risk exposure, or they cobble together multiple policies with different providers, often at a higher cost and with less clarity.

At NPN Brokers, we approach things differently. We partner with carriers who understand the staffing industry’s unique needs, especially at the higher payroll level. For firms with $10 million or more in annual payroll, we’re able to offer options that consolidate your workforce into one policy—even if that workforce includes 1099s.

How We’re Able to Offer Coverage for W2 and 1099 Workers

The key difference is who we work with. We’ve built relationships with insurance providers that specialize in high-risk and high-complexity coverage, including policies designed specifically for staffing firms with mixed employee classifications. These providers are willing to write policies that accommodate both W2 employees and independent contractors, provided certain payroll thresholds and operational criteria are met.

When your staffing agency’s annual payroll exceeds $10 million, you become eligible for a wider range of options in the eyes of select insurance markets. That level of payroll not only signals scale—it shows insurers that your firm has an established operation with systems in place to manage risk across different worker classifications.

We take all of that into account and present your firm to carriers that understand the value of your operation. This helps us secure policies that meet your needs without the restrictions you’ll often find from more conventional brokers.

The Challenges of Managing Multi-State Staffing Operations

Many staffing firms we work with don’t operate in just one state. Instead, they place workers across multiple states, sometimes dozens. This adds a layer of complexity, especially when it comes to maintaining compliance with each state’s workers’ comp laws and classification codes.

Some brokers simply aren’t equipped to manage multi-state coverage effectively. They may be limited to writing policies in only a handful of states, or they may not have the expertise needed to structure a policy that can flex across borders.

At NPN Brokers, we regularly work with staffing firms that operate in several states at once. In fact, we can write workers’ compensation policies in 46 states. Whether you’re sending administrative workers to California, IT contractors to Texas, or healthcare professionals to Florida, we can help you structure a policy that keeps your business protected everywhere you operate.

Why This Matters for Growing Staffing Firms

Staffing agencies with $10M+ in payroll are typically on a growth trajectory. You’re adding new clients, expanding your candidate base, and often working across more industries than you were just a year or two ago. But that growth also means more risk, especially if your workers’ comp coverage isn’t evolving alongside your business.

If your insurance provider is only covering your W2s—or if you’re having to maintain multiple policies for different worker types—you’re not just overpaying. You’re also increasing the chances of gaps in coverage, inconsistent reporting, and even compliance issues during audits.

With a combined policy through NPN Brokers, you get:

• Comprehensive Coverage: Both W2 and 1099 workers under one streamlined policy.
• Multi-State Flexibility: Coverage that works across 46 states—ideal for distributed teams and travel assignments.
• Fewer Headaches: No need to juggle multiple policies or vendors.
• Transparent Pricing: Pay-as-you-go options with no contracts, no audits, and no deposits.

What Carriers Need to See to Approve Coverage

Getting coverage for both W2 and 1099 employees isn’t automatic. Insurance carriers still need to understand how your business operates, how you classify your workers, and what steps you’re taking to minimize claims.

That’s where we come in. We’ll gather information on your payroll, prior claims history, industry sectors, and operating states. From there, we present your case to the right carriers with a focus on speed and accuracy. Because of our relationships and experience in this space, we’re often able to get quotes back in minutes—and in many cases, secure coverage in as little as 24 hours.

If you’ve had past claims, don’t worry. Many of our clients come to us after being dropped by previous insurers or being told “no” by other brokers. High-risk doesn’t mean uninsurable—it just means you need the right partner.

What Types of Staffing Firms Can Benefit?

We work with staffing agencies across many sectors, including:

• Healthcare staffing – nurses, CNAs, home health aides
• IT and technical staffing – developers, system admins, engineers
• Light industrial and warehousing – forklift operators, material handlers
• Administrative and clerical staffing – office staff, call center agents
• Construction labor staffing – skilled trades, general laborers
• Event staffing and hospitality – banquet servers, security, maintenance

If your agency handles temporary, contract, or long-term placements and you have a mix of W2 and 1099s, we can likely help.

Get a Quote for Workers’ Comp Insurance That Covers Your Entire Team

At NPN Brokers, our goal is to make workers’ comp coverage easier—not more complicated. We specialize in working with staffing firms that need comprehensive solutions for W2s and 1099s alike, even across multiple states and industries.

If your staffing firm has over $10 million in payroll and you’re tired of patchwork policies, rigid brokers, or being told “it can’t be done,” give us a call. We’re confident we can help you get the coverage you need—and fast. Call us today at (561) 990-3022 or fill out our online quote request form to get started.

Let’s make workers’ comp one less thing you have to worry about.