Why Traditional Workers’ Comp Brokers Decline Staffing Agencies

Staffing agencies play a crucial role in today’s workforce, supplying businesses with the talent they need to operate smoothly. Yet when it comes to securing workers’ compensation insurance, staffing firms often find themselves hitting roadblocks. Traditional brokers are hesitant—and sometimes outright refuse—to write policies for staffing agencies. But why?

In this blog, we’ll break down the reasons staffing agencies face so many challenges with traditional workers’ comp brokers. We’ll also explain how NPN Brokers specializes in helping staffing companies, whether temp or permanent, secure the proper coverage they need to stay protected and compliant.

The Unique Risk Profile of Staffing Agencies

One of the biggest reasons traditional brokers turn staffing agencies away is the nature of the industry’s risk profile. Unlike a single business operating within one industry, staffing agencies send employees into a wide range of workplaces—each with different safety standards, job duties, and exposure risks.

A staffing agency might have clerical employees working in low-risk office environments one day and warehouse workers operating forklifts the next. This unpredictability makes it harder for insurance carriers to assess the level of risk involved. Higher, harder-to-quantify risk often translates to hesitation from traditional brokers, who prefer “safer” and more predictable industries.

At NPN Brokers, we understand the staffing industry’s dynamic nature. We specialize in placing workers’ compensation policies that account for diverse work environments and employee roles, helping staffing companies get the protection they need without unnecessary hurdles.

A History of Prior Claims and Losses

Another reason traditional brokers shy away from staffing agencies is a history of prior claims. When workers are injured on the job—especially across a variety of industries—claims can stack up quickly.

Even staffing agencies that manage their operations carefully can find it hard to avoid incidents completely, simply because they can’t control every worksite’s safety practices. To a traditional broker, a few claims can paint a staffing agency as “too risky,” even when many of those claims were minor or fully resolved.

At NPN Brokers, we don’t view prior claims as a disqualifier. We work with staffing agencies that have experienced claims and know how to present your business to insurance companies in the best possible light. Our goal is to secure affordable workers’ comp coverage that keeps your operations running—no matter your claims history.

High Employee Turnover Rates

Staffing agencies naturally experience higher turnover than many other types of businesses. Temporary placements, short-term contracts, and seasonal work mean employees are constantly rotating.

From an insurance perspective, high turnover can be seen as another risk factor. New hires may be less familiar with safety protocols, job expectations, or equipment, which increases the chance of injuries. Traditional brokers often use this turnover rate as another reason to decline working with staffing firms.

NPN Brokers sees staffing turnover for what it is: part of the industry’s business model, not a failure in management. We’ve built relationships with insurance providers that are comfortable insuring staffing companies with fluctuating workforces. We focus on finding policies that align with how staffing agencies really operate.

Industry Classifications and Specialty Placements

Many staffing agencies place employees in specialized or higher-risk industries such as manufacturing, construction, healthcare, or warehousing. These industries carry greater workers’ comp risks than standard office work, further complicating things when trying to obtain insurance through a traditional broker.

Traditional brokers often prefer to avoid these specialty placements altogether because they require a deeper understanding of multiple industries and their individual risk factors. Rather than learning the nuances, they opt to decline staffing agencies outright.

NPN Brokers thrives in these complex scenarios. Whether you place employees in light industrial roles, skilled trades, healthcare settings, or any combination of fields, we have access to workers’ comp programs that fit your staffing agency’s needs. We specialize in providing insurance for agencies that support high-risk industries.

Traditional Brokers’ Internal Limitations

Another factor at play is that many traditional insurance agencies have internal limitations or carrier restrictions that make it harder to write policies for staffing agencies. Their underwriting guidelines may prohibit them from taking on accounts that involve:

• Multiple industries within one policy
• High-risk placements
• Temporary or seasonal employees
• Previous loss history

Rather than investing extra time and resources into finding a fit, many traditional brokers simply decline to quote staffing agencies.

At NPN Brokers, staffing agencies aren’t an afterthought—they’re a core part of who we serve. We’ve built partnerships with carriers that are specifically willing to insure staffing firms of all types. This gives us the ability to get your agency coverage, even when other brokers say no.

The Benefits of Working with NPN Brokers

Staffing agencies need a workers’ compensation broker who understands their challenges—and has real solutions. That’s exactly what we offer at NPN Brokers.

Here are a few ways we make the process easier for staffing agencies:

• Fast Quotes: We can provide workers’ comp quotes within minutes, not days.
• Same-Day Coverage: In many cases, you can have active workers’ comp coverage in as little as 24 hours.
• Flexibility: No long-term contracts, no deposits, and no audits. We offer pay-as-you-go options that match the way staffing agencies operate.
• Specialization: We work with staffing agencies of all types—temporary, permanent placement, seasonal, high-risk industry placements, and more.
• Prior Claims Accepted: Having past claims doesn’t mean you can’t get insured. We find solutions for agencies with loss histories.

If you’ve been turned down by traditional brokers, you’re not alone. NPN Brokers is here to step in and get your staffing agency the workers’ comp coverage it needs.

How NPN Brokers Makes It Easy to Get Workers’ Comp

Getting a quote and securing workers’ comp insurance with NPN Brokers is simple. You won’t find a complicated, drawn-out process here.

All it takes is a quick call to our team or filling out our online quote request form. We’ll ask for some basic information about your agency—like what industries you place workers in, your estimated payroll, and any previous claims. From there, we’ll shop around to find the right workers’ comp solution for you.

In many cases, we can provide a quote within minutes. And if you choose to move forward, you could have your workers’ comp policy active within 24 hours. We make it that fast and that easy.

When you partner with NPN Brokers, you’re getting more than just a policy. You’re getting a partner who understands the staffing industry and can help you protect your business without the red tape.

Ready to Get Started?

If you’re tired of hearing “no” from traditional brokers, it’s time to work with a team that specializes in getting staffing agencies insured quickly and reliably.

Give NPN Brokers a call at (561) 990-3022 or fill out our online quote request form today. We’ll get you a workers’ comp quote within minutes and can have your staffing agency covered as soon as the same day.