Occupational Risks That Drive Up Workers’ Comp Costs in Healthcare Staffing

The healthcare staffing industry plays an essential role in keeping hospitals, nursing homes, and clinics adequately staffed. Every day, agencies connect qualified nurses, aides, and medical professionals with the facilities that depend on them. However, along with this responsibility comes a major challenge: managing the high cost of workers’ compensation insurance.

Healthcare staffing is considered one of the highest-risk sectors when it comes to employee injuries. The nature of the work, the environments involved, and the physical and emotional demands placed on healthcare workers all contribute to frequent and costly claims. These risks can make it difficult for staffing agencies to find affordable workers’ comp coverage, particularly if they have experienced prior claims or are new to the industry.

At NPN Brokers, we understand these challenges and specialize in helping healthcare staffing agencies secure workers’ compensation coverage quickly and affordably. We work with insurance carriers that are comfortable writing policies for higher-risk industries, allowing us to help agencies get the protection they need without lengthy contracts, large deposits, or complicated audits. Our team can often provide quotes within minutes and bind coverage in as little as 24 hours.

In this article, we’ll take a detailed look at the occupational risks that drive up workers’ compensation costs in healthcare staffing, why traditional insurance carriers often hesitate to cover these firms, and how NPN Brokers can help your agency get the coverage it needs to operate safely and confidently.

Why Healthcare Staffing Faces Higher Workers’ Comp Costs

Healthcare staffing is unlike most other forms of temporary employment. Instead of sending workers to offices or warehouses, staffing firms in this sector place employees in hospitals, nursing homes, assisted living facilities, and private homes. Each environment presents its own set of hazards, and workers often perform physically demanding tasks under stressful conditions.

Many healthcare staffing employees work as nurses, certified nursing assistants (CNAs), medical technicians, or home health aides. These workers frequently assist patients with mobility, handle medical equipment, and are exposed to contagious illnesses. The potential for injury or illness is far higher than in administrative or clerical placements, which is why workers’ comp insurers treat healthcare staffing as a high-risk class.

Traditional insurers prefer industries where injury risks are easier to control and predict. Healthcare staffing, however, involves multiple moving parts. Employees work at third-party facilities that may have different safety standards. Shifts are often long and exhausting. Job duties can vary dramatically from one assignment to another. All of these factors make it harder for insurance companies to assess and manage exposure.

The result is that many healthcare staffing firms struggle to get coverage or are quoted excessively high premiums. This is where NPN Brokers can step in to provide options designed specifically for staffing companies operating in the healthcare space.

Common Occupational Risks in Healthcare Staffing

Understanding what drives up workers’ compensation costs begins with identifying the most common risks faced by healthcare workers. The following categories represent the leading causes of claims and premium increases within the industry.

Patient Handling and Musculoskeletal Injuries

Perhaps the most significant source of injury in healthcare staffing involves patient handling. Nurses and aides often lift, reposition, or transfer patients who cannot move on their own. These movements are repeated throughout a shift and frequently performed without sufficient mechanical assistance.

Over time, this constant strain can lead to back injuries, shoulder strains, and other musculoskeletal disorders. The Bureau of Labor Statistics has consistently ranked nursing assistants among the occupations with the highest rates of musculoskeletal injuries.

Such injuries are costly to treat and often result in extended time off work. Physical therapy, pain management, and recovery can take weeks or even months. As these claims accumulate, they drive up an agency’s loss history, which directly affects premium rates.

To help reduce this exposure, healthcare staffing firms should emphasize training on safe lifting techniques, encourage the use of lifting equipment, and partner only with facilities that provide proper assistive devices. While prevention is key, insurers still view patient handling as an unavoidable hazard of healthcare work.

Slips, Trips, and Falls

Another frequent cause of workers’ compensation claims in healthcare involves slips, trips, and falls. Hospitals and nursing homes are fast-paced environments where spills, cords, and crowded hallways are common. Staff must move quickly to respond to emergencies or attend to patients, often without noticing potential tripping hazards.

Even a seemingly minor fall can lead to fractures, sprains, or head injuries. These claims can be expensive, as they may require extensive medical care and time away from work. Repeated incidents can also raise red flags for insurers, suggesting a lack of workplace safety oversight.

Agencies can help reduce fall-related injuries by encouraging the use of non-slip footwear, requiring employees to report unsafe conditions immediately, and maintaining open communication with client facilities about workplace safety expectations.

Needle Sticks and Bloodborne Pathogens

Exposure to bloodborne pathogens such as HIV or hepatitis B and C is a constant risk in the healthcare field. Accidental needle sticks or contact with contaminated sharps can lead to infection or require extensive preventive treatment and follow-up testing.

Even if the exposure does not result in illness, the associated medical costs and lost time can drive up claim expenses. From an insurer’s perspective, these types of claims are unpredictable and can escalate quickly if complications occur.

Proper training on sharps handling, disposal procedures, and the use of personal protective equipment (PPE) are vital in minimizing these risks. Agencies should ensure that all workers are properly trained before placement and confirm that partner facilities adhere to strict infection control standards.

Workplace Violence and Patient Aggression

Workplace violence is an often-overlooked hazard in healthcare. Employees may encounter aggressive or combative patients, particularly in behavioral health, psychiatric, or emergency settings. Injuries resulting from assaults can be severe and may involve both physical and emotional trauma.

Staffing agencies can mitigate this risk by ensuring that employees receive de-escalation training and by working with facilities that have strong security protocols. However, because such incidents can still occur unexpectedly, insurers consider these environments higher risk.

Fatigue, Overexertion, and Burnout

Healthcare workers are known for working long shifts, often under intense physical and emotional pressure. Fatigue leads to slower reaction times, reduced focus, and a higher likelihood of accidents. Overexertion injuries, such as strained muscles or repetitive stress conditions, are common and can result in costly claims.

Agencies can help by promoting better scheduling practices, limiting double shifts when possible, and encouraging regular breaks. While these measures can help control the problem, insurers remain aware that fatigue is an ongoing issue in healthcare staffing.

Infectious Disease Exposure

Exposure to infectious diseases remains a leading occupational concern. Even after the height of the COVID-19 pandemic, healthcare workers continue to face exposure to viruses, bacteria, and other pathogens. Illness-related claims can spike during seasonal outbreaks or pandemics, resulting in widespread losses for insurers.

Using PPE, following strict hygiene protocols, and staying up to date on vaccinations are essential measures to reduce exposure risk. Staffing agencies that demonstrate these precautions are viewed more favorably by insurers, but the inherent risk still contributes to higher workers’ comp rates across the industry.

Why Traditional Insurers Hesitate to Cover Healthcare Staffing

While some insurers specialize in healthcare risks, many traditional carriers avoid healthcare staffing altogether. The reasons often include high claim frequency, costly medical treatments, and limited control over job sites.

Unlike a business that operates under one roof, healthcare staffing agencies send employees into facilities they do not manage. This lack of oversight makes it difficult for underwriters to evaluate safety conditions accurately. Furthermore, healthcare staffing often involves multiple workers’ comp class codes, from medical assistants to registered nurses to home healthcare providers, which complicates premium calculations and increases underwriting uncertainty.

Temporary and per diem workers also present a higher risk. Since they rotate between assignments and facilities, they are more likely to encounter unfamiliar hazards. High turnover can lead to a workforce that is less experienced, less trained, or more prone to injury.

For these reasons, many healthcare staffing firms are either denied coverage or charged prohibitively high premiums. This can make it difficult for agencies to operate legally and competitively, especially when entering new states or expanding services.

How NPN Brokers Helps Healthcare Staffing Agencies Get Coverage

NPN Brokers was built to help businesses in complex and high-risk industries get the workers’ compensation coverage they need. We have extensive experience working with staffing agencies that other brokers and carriers consider “hard to place.”

Our approach is centered on speed, flexibility, and accessibility. Whether your agency has prior claims, operates across multiple states, or serves high-risk healthcare facilities, we can help you find a solution that fits your business model.

Fast Quotes and Quick Coverage

We know that staffing agencies need coverage in place right away. Without it, you cannot legally operate or place employees. That’s why NPN Brokers provides quotes in minutes and can often get coverage bound within 24 hours.

Pay-As-You-Go Programs

Our Pay-As-You-Go workers’ comp programs allow you to pay premiums based on your actual payroll rather than an estimated annual amount. This flexibility helps control cash flow and ensures you only pay for what you use. It also eliminates the need for large upfront deposits, making it easier for newer or growing agencies to manage costs.

No Contracts, No Deposits, and No Audits

We believe in keeping things simple. That’s why we work only with carriers that do not require long-term contracts or audits. You have the freedom to adjust or cancel coverage if your business needs change, without penalties or surprises.

Multi-State and High-Risk Coverage Options

Whether your healthcare staffing firm places traveling nurses across state lines or operates in a single region, NPN Brokers can provide solutions designed for multi-state compliance. Our carrier network includes options that accommodate complex business models and cross-jurisdictional coverage needs.

Assistance for Agencies with Prior Claims

If your agency has a history of workers’ comp claims, you may have already been turned away by traditional carriers. NPN Brokers works with insurers who understand that prior claims do not necessarily define your future risk. We can help you get back on track by presenting your business in a positive light to underwriters and securing coverage at a reasonable rate.

Managing Risk and Controlling Workers’ Comp Costs

While NPN Brokers helps agencies obtain affordable coverage, it’s equally important for staffing firms to take proactive steps to manage risk. Reducing the number and severity of claims can significantly lower long-term costs and improve insurability.

Some effective strategies include:

• Implementing regular safety and ergonomics training.
• Conducting post-placement follow-ups with employees and facilities.
• Partnering with clients who have strong safety records.
• Offering early return-to-work programs for injured employees.
• Documenting all incidents promptly and accurately.

By combining sound risk management practices with a flexible insurance program, healthcare staffing agencies can protect their employees, stay compliant with state laws, and keep costs under control.

Partner with NPN Brokers for Your Workers’ Comp Needs

At NPN Brokers, we know the healthcare staffing industry inside and out. We understand the risks your employees face, the compliance requirements your agency must meet, and the financial pressures you’re under. Our mission is to make getting covered simple, fast, and stress-free.

If your healthcare staffing agency has been denied coverage, is paying too much for workers’ comp, or needs multi-state or Pay-As-You-Go options, we can help. Our team is ready to provide you with a fast, no-obligation quote and guide you through every step of securing coverage.

To get started, give us a call at (561) 990-3022 or fill out our online quote request form today.