Workers’ Comp Insurance for Staffing Companies in Georgia

Like most companies in Georgia, most staffing companies need Workers’ Compensation. Which workers are covered, however, is sometimes difficult to know, especially because of the payroll changes of staffing companies.

Staffing companies typically need Workers’ Compensation in Georgia. Temp workers placed at other companies by staffing companies are generally considered employees of the staffing company, meaning they must be covered by the staffing company’s Workers’ Compensation. Regarding policies, pay-as-you-go coverage is often ideal for staffing companies, as it allows monthly premiums to reflect updated payroll numbers. If you do not get Workers’ Compensation for your staffing company and its employees, or if you let your policy lapse for any period of time, you might be faced with costly fines from the Georgia State Board of Workers’ Compensation and possibly jail time.

Call our Georgia Workers’ Compensation insurance brokers at (561) 990-3022 to get a quote from NPN Brokers for your staffing company today.

Staffing Companies and Workers’ Comp in Georgia

Staffing companies can perform multiple services in Georgia, such as helping companies to recruit experienced workers or placing temporary employees with a company for a short period of time. This makes figuring out the Workers’ Compensation requirements for staffing companies much more complicated.

If a staffing company only helps companies find and hire employees in Georgia, they will only need Workers’ Compensation for the actual employees of the staffing company itself. When working as the middleman, so to speak, a staffing company is not responsible for providing Workers’ Compensation to employees eventually hired by another company.

However, if a staffing company has temp workers and places them at companies for a short period in Georgia, those temp workers would be employed by the staffing company, not the company they are temporarily working for. This can get confusing, which is why speaking with our Workers’ Compensation insurance brokers about coverage requirements is important for staffing companies. Not accurately reporting payroll numbers can lead to a staffing company not having coverage for all necessary workers, leaving them vulnerable to financial penalties in Georgia. So, determine which workers you are responsible for providing coverage to, and follow through.

Workers’ Comp Insurance Policies for Georgia Staffing Companies

Staffing companies, especially those who help people find temporary work in Georgia, often have a revolving door of employees. Because of this, one type of Workers’ Compensation insurance policy might be preferable over others.

Pay-as-you-go Workers’ Compensation insurance can help staffing companies in Georgia save on premium costs. Instead of basing annual premiums on yearly payroll estimations, you can limit spending on insurance to only workers you employ each month. This advantage allows your payroll numbers to fluctuate constantly and be reflected in your monthly Workers’ Compensation premiums.

Staffing companies that have a more concrete workforce do not need to get pay-as-you-go insurance. However, they can still benefit from coverage that does not necessitate audits or deposits, eliminating frustrating administrative requirements and expensive down payments. Flexible and affordable Workers’ Compensation benefits all companies in Georgia, regardless of their size or operations.

How to Get Workers’ Comp Insurance for Staffing Companies in Georgia

The process of getting Workers’ Compensation can be relatively simple, provided you source policies from experienced brokers. It starts by getting quotes and ends with agreeing to a policy.

Begin by gathering all pertinent information about your staffing company. This includes previous workplace accidents and the number of workers it employs. Then send that information to our brokers. Within a day, you can get a quote for Workers’ Compensation insurance.

You can sign on to a plan after reviewing your quotes and the attached policies. You will not have to be concerned about contracts or deposits when you do. Before you agree to a plan, make sure it meets your needs and that the premiums are not too high for your budget.

Maintaining Workers’ Compensation at all times is important for staffing companies. Although you might think that workplace injuries are less likely to occur in office settings, they do happen. Also, remember that temp workers you place at companies might be doing a wide variety of work and that your Workers’ Compensation policy covers them. If they are hurt, it would be the responsibility of your staffing company to provide benefits in Georgia, as they are technically your employee.

If you want a new policy, do not cancel your existing one until you find another plan that suits your needs. Otherwise, you might have a lapse in coverage, leaving your staffing company vulnerable should a workplace accident occur.

Fines Associated with Workers’ Comp Non-Compliance for Staffing Companies in Georgia

When any company is out of compliance with the Workers’ Compensation requirements in Georgia, including those in relatively low-risk industries like staffing companies, they can be met with expensive fines.

If the State Board of Workers’ Compensation becomes aware that your staffing company is without insurance, it may assess a fine of between $500 and $5,000. For most other Workers’ Compensation law violations, staffing companies might be fined between $100 and $1,000. These fines are assessed per violation, meaning multiple fines can be applied.

When staffing companies do not have Workers’ Compensation and an employee is hurt, they become responsible for paying benefits to that injured worker. This includes compensation for a percentage of lost wages and medical expenses. On top of that, the Board of Workers’ Compensation might decide to increase benefits paid to an injured worker by 10% if the staffing company that employs them is without insurance in Georgia.

Failing to get Workers’ Compensation is also considered a misdemeanor offense and is punishable with a $10,000 fine and possibly up to 12 months in jail.

Find Workers’ Comp for Your Staffing Company

To learn more about NPN Brokers, call our Workers’ Compensation insurance brokers today at (561) 990-3022.